meta_id 3209444

On June 3, 2026, the New York State Department of Financial Services (DFS) approved a consent order resolving enforcement action against Santander Consumer USA Inc., a licensed lender under Article 9 of the New York Banking Law. The settlement addresses violations of Section 350 of the New York Banking Law stemming from the company's charging of undisclosed extension fees on indirect automobile loans between February 2016 and May 2017. During a Consumer Compliance and Fair Lending Examination covering January 1, 2016, to December 31, 2018, the DFS identified that Santander Consumer charged borrowers a $25.00 monthly extension fee despite Extension Agreements disclosing only a single $25.00 fee during a roughly fifteen-month period. This practice resulted in New York borrowers paying approximately $237,000 in undisclosed extension fees, with an additional approximately $86,000 assessed but not collected. The DFS determined this conduct was false, misleading, and deceptive in violation of New York Banking Law Section 350(a). Under the consent order, Santander Consumer must pay a civil monetary penalty of $400,000 within ten days of the effective date. The company must also provide restitution to all eligible impacted borrowers—defined as New York State borrowers charged or assessed undisclosed extension fees between February 19, 2016, and May 10, 2017—through refund checks plus interest or waiver of assessed but unpaid fees. The DFS approved the company's list of eligible impacted borrowers and restitution amounts. Santander Consumer must waive assessed but unpaid fees within thirty days and mail refund checks within three months, using reasonable efforts to locate borrowers no longer holding active loans. The company may engage a settlement administrator to administer payments. The DFS acknowledged Santander Consumer's cooperation during the investigation and voluntary remediation efforts.