KANSAS REACHES SETTLEMENT WITH SUBPRIME FINANCE CO

Kansas has reached a settlement requiring the nation’s largest subprime auto financing company to pay approximately $2.9 million to Kansas consumers, with more relief of as much as $1.6 million possible depending on the particular auto loan. Kansas Attorney General Derek Schmidt said the settlement, involving Kansas and 33 other states, resolves allegations that Santander Consumer USA Inc. violated consumer protection laws by exposing subprime consumers to unnecessarily high levels of risk and knowingly placing these consumers into auto loans with a high probability of default. The settlement stems from a multistate investigation of Santander’s subprime lending practices opened by the coalition of attorneys general in March 2015 after receiving an increase in consumer complaints related to subprime auto loans.