TITLE: New York Department of Financial Services Secures $400,000 Settlement with Santander Consumer
BODY:
On June 3, 2026, the New York State Department of Financial Services (DFS) announced a settlement with Santander Consumer USA Inc. (Santander Consumer) for violations of New York State Banking Law. Acting Superintendent Kaitlin Asrow secured a $400,000 penalty and more than $275,000 in restitution to eligible impacted borrowers.
The DFS investigation determined that Santander Consumer, a licensed lending institution, imposed undisclosed extension fees on automobile loans in violation of New York Banking Law provisions prohibiting false, misleading, or deceptive statements regarding lending rates, terms, or conditions. Although Santander Consumer's extension agreements disclosed a single $25.00 extension fee, the company charged borrowers $25.00 per month in extension fees. This practice resulted in New York borrowers paying approximately $237,000 in undisclosed fees. Additionally, Santander Consumer assessed but did not collect $86,000 in undisclosed fees from other New York borrowers. Santander Consumer voluntarily ceased charging these undisclosed fees prior to the settlement.
The settlement requires Santander Consumer to provide full restitution to all eligible impacted borrowers through either refund checks (including interest) or waivers of assessed but unpaid fees. Consumers with automobile loans from Santander Consumer prior to 2018 may be eligible for restitution. Impacted borrowers can contact Santander toll free at 888-356-0269 for inquiries related to restitution. The DFS said it remains committed to holding financial institutions accountable for consumer safeguards under New York law.