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Santander Consumer USA Receives DOJ Subpoena

August 07, 2014

DALLAS — In an August 7 filing with the Securities and Exchange Commission, Santander Consumer USA revealed that the U.S. Department of Justice (DOJ) has issued a subpoena to the finance source, requesting documents related to subprime auto loans.

Citing the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the DOJ requested Santander provide documents and communications “that, among other things, relate to the underwriting and securitization of nonprime auto loans since 2007,” according to the filing.

“We are cooperating with this request,” the filing stated.

Like GM Financial, which reported in a SEC filing Monday that it received such a subpoena on July 28, Santander did not refer to the DOJ’s actions as anything other than a standard legal proceeding “arising in the normal course of business.”

In the past, the DOJ has used the FIRREA to go after finance sources in the mortgage area. Last month, Citigroup was ordered by the DOJ to pay the largest civil penalty under FIRREA in history — $4 billion — for its conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities prior to Jan. 1, 2009. 

“We have recorded no material reserves for any cases and do not believe that there are any proceedings threatened or pending that would have a material adverse effect on us if determined adversely,” Santander concluded in its filing.


  1. 1. Mike Wells [ August 08, 2014 @ 06:13AM ]

    I post legal actions like this not to pick on the Company involved, but to illustrate the scrutiny being leveled against lenders in general.
    This type of pressure and fines from the regulators against lenders will eventually filter down the dealer. ... Mike Wells

  2. 2. Kirby [ August 08, 2014 @ 06:55AM ]

    It's about time. Santander has been buying crazy liar loans for years now. How can you waive stips on a subprime loan? This could be the beginning of the end for these guys.

  3. 3. Mike Hull [ August 08, 2014 @ 02:24PM ]

    I wonder if NADA will send a memorandum to all dealers to use caution when offering loan options? Sounds silly but this is exactly what NADA did in May for biweekly payments with less information.

  4. 4. Adrian F [ August 09, 2014 @ 10:13AM ]

    I disagree with Kirby and could not agree more with Mr Wells. Being that Banco Santander is the 11th largest bank in the planet by Market Capitalization with I over $110 billion USD I highly doubt that this is the end for them in the Retail Auto Lending world. They will be punished with a fine, they will wire the money the next business day. They will raise the acquisition fees to the dealers and they will recoup that wire transfer money by the following quarter. They are the 11th richest bank in the world for a reason. Life will go on and we will forget about this article by the end of the month. :-). I've seen this movie lots of times in my Auto career.


  5. 5. Mark [ August 23, 2014 @ 02:17PM ]

    Santander is going down...along with Chrysler Capital


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