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Santander Consumer USA penalized for credit reporting violations

Fort Worth, TX
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The CFPB issued a consent order directing that Santander Consumer USA, Inc. (Santander) pay a $4,750,000 civil money penalty. Santander is a subsidiary of Banco Santander S.A., and a leading originator of nonprime auto loans and leases. Santander furnishes credit information on the auto loans it services by sending monthly data files to CRAs. The Bureau found that the consumer loan data Santander furnished to CRAs between January 2016 and August 2019 contained many systemic errors that in many instances, could have negatively impacted consumers’ credit scores and access to credit.

The Bureau found that Santander ---

  • furnished consumer loan information to CRAs that it knew or reasonably should have known was inaccurate
  • failed to furnish accurate information regarding whether accounts were open or closed and whether consumers were carrying a balance or obligated to make future payments.
  • failed to promptly update and correct information it furnished to CRAs that it later determined was incomplete
  • failed to provide the date of first delinquency on certain delinquent or charged-off accounts
  • failed to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs.

Under the order Santander must correct all inaccuracies and errors that the Bureau identified and take certain steps to improve and ensure the accuracy of the consumer information it provides to CRAs. These steps include conducting monthly reviews of account information to assess the accuracy and integrity of information Santander furnishes. Santander must also establish and implement reasonable policies and procedures regarding the accuracy and integrity of information it furnishes to CRAs.

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