Santander Consumer Receives DOJ Subpoena
Published: August 9th, 2014
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Following GM Financial’s subpoena from the Department of Justice, Santander Consumer said that it had received a subpoena as well related to
“production of documents and communications that, among other things relate to the underwriting and securitization of nonprime auto loans since 2007,”
Reuters is reporting that Santander Consumer is co-operating with the requests. Santander Consumer is a major lender, with Experian reporting that it ranked 5th in used vehicle loan originations in the first quarter of 2014 and 10th overall. Santander Consumer is also partnered with Chrysler Capital, which is Chrysler’s captive financing arm. When reached for comment, Chrysler was unavailable at the time of publication.
More by Derek Kreindler
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Sometimes we can blame it on keeping up with the jones, conspicuous consumption. so many of us are so gullible to be sucked into big loans that we will never ever be able to climb out alive. Such as wheels worth 20k and u owed 30k. So there will never be any incentive to pay them off. Soon as u got laid off, everything will fall to pieces and comes to a grinding halt! Usually thats not happening in isolated case, but a big community surrounding u. When houses on your street start hanging up For sale sign, u know the buzzards are circling from above. Economy will go in cycles. Fun going up but not so when big corrections are being made.
Roadloans is a joke because it penalizes especially the independent dealer for a hefty acquisiton fee. Granted, most subprime companies charge discounts, but Roadloans is ridiculous - $2-3,000 unless you're part of their network. Plus, their stip requirements are ridiculous and their funding time is lousy. Almost as bad a company as CAC. I refuse to do business with either of them. CARMAX does, though, which explains alot about their pricing scheme.
I don't know about this one. I do broadly expect to see excessive regulation lead to higher consumer prices. OTOH I've seen people be outright taken advantage of on absurd interest rates and in my experience that contributes to the likelihood of their default down the road. If it was only happening to twenty or thirty somethings with time to rebuild it would be one thing, but it was probably stories of grandma's etc...being hosed that created the political climate where this regulation was desired.
Anyone who would spend $3000-$4000 on a loan origination fee, when that amount of money will buy a perfectly good used car, is an idiot who deserves to be taken advantage of. When I made $7.25/hr, I drove a rusty piece of shit. That's what poor people should drive while they're saving and working toward a future in which they are no longer poor.