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Santander Violates FCRA: Settles with CFPB for $4.75 Million

Santander Violates FCRA States the CFPB.

Washington D.C. – In a blockbuster settlement, the CFPB settled their case around Santander reporting violations for a $4.75 million dollars. Santander Consumer USA is a large lender who often deals in subprime loans for automobiles.

CFPB Proves Santander Violates FCRA Over Multiple Years.

This news comes as no shock to those who have dealt with Santander in the past. The lender, based in Spain, has grown into the North American market over the past decade and has a history of incorrectly reporting to the credit reporting agencies.

In this recent action by the CFPB, the bureau found that for nearly a three year period between 2016 and 2019, Santander violated the FCRA with widespread and systematic errors. These errors negatively impacted consumers and their ability to obtain financing. Santander was showing to willingly know this was the case, and did not provide sufficient effort to remedy.

According to the CFPB settlement, in addition to the financial penalty, Santander will have to correct any reporting errors appropriately identified.

In 2011, I was also a victim of Santander Reporting Incorrectly to the CRA’s

In the middle 2000s, I had a auto loan with Citi Bank that ended up in repossession. I settled with Citi with written confirmation the loan will be removed from my credit report upon settling my debt. Several years after this settlement was paid, Santander purchased a portfolio from Citi and my paid loan was a part of that. Santander immediately started reporting the repossession. It was an ordeal, but I was successful in removing this from my credit report. This current landscape will provide you a similar opportunity, if you choose to take it.

Santander Violates FCRA: Leverage For Trade-line Removal:

If you have a negative Santander loan, this is your moment! As the CFPB has already settled with Santander, removal of incorrect information is part of their current action. I wouldn’t suggest simple online disputes, but if you have a valid reason to approach removal don’t delay.

Steps to take for active removal of Santander:

  • Submit a formal dispute to Santander directly with a certified letter. In this letter, state your case for removal. Use anything that is possibly incorrect and state your desire to remove the trade line completely. Make sure you cite the CFPB settlement document.
  • If this does not lead to removal, dispute with the credit reporting agencies in question and follow this up with a method of verification letter, also certified.
  • If the trade-line is still showing on your credit reports, file a complaint with the CFPB.

Final Thoughts:

These kinds of opportunities don’t happen very often. When the CFPB settles with a lender, using this information in removal attempts can yield great results. Often times, lenders will not want to fight a battle they could very well lose, specifically if the government is already involved. Take a liberal approach to what could be considered improper reporting. Remember, in this case the lender has already been shown as in the wrong. Use their hesitance to your advantage! Remove your negative Santander account today.

This article was last updated on May 10, 2022