Santander Bank to Pay $11.8M to Settle Loans, Insurance Claims
Nov. 21, 2018—Santander Bank will settle and pay $11.8 million to settle claims it misled customers on the cost and terms of auto loans and insurance, reported the Insurance Journal.
The bank failed to explain to customers that an insurance policy known as "guaranteed auto protection" (GAP) would not always cover the costs of replacing a car that was destroyed in an accident.
Santander will pay a $2.5 million fine and provide about $9.3 million in refunds to drivers, according to the report. The company did not admit guilt.
The bank promised drivers lower monthly fees by allowing them to make interest-only payments without explaining this would increase the cost of a loan.