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UNITED STATES OF AMERICA
BUREAU OF CONSUMER FINANCIAL PROTECTION
ADMINISTRATIVE PROCEEDING
File No. 2020-BCFP-
In the Matter of:
CONSENT ORDER
SANTANDER CONSUMER USA
INC.
The Bureau of Consumer Financial Protection (Bureau) has reviewed the
consumer credit furnishing practices of Santander Consumer USA Inc.
(Respondent, as defined below) and has identified the following law violations: (1)
Respondent furnished inaccurate information about consumers’ credit to Consumer
Reporting Agencies (CRAs) that it knew or had reasonable cause to believe was
inaccurate in violation of § 623(a)(1)(A) of the Fair Credit Reporting Act (FCRA),
15 U.S.C. § 1681-s2(a)(1)(A); (2) Respondent failed to promptly update and
correct information furnished to CRAs that Respondent determined was not
complete or accurate in violation of § 623(a)(2) of the FCRA, 15 U.S.C. § 1681-
s2(a)(2); (3) Respondent furnished information to CRAs about severely delinquent
or charged-off accounts but failed to furnish Dates of First Delinquency (DOFDs)
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for those accounts in violation of § 623(a)(5) of the FCRA, 15 U.S.C. § 1681-
s2(a)(5); and (4) Respondent failed to establish and implement reasonable written
policies and procedures regarding the accuracy and integrity of information
provided to CRAs in violation of Regulation V, 12 C.F.R. § 1022.42(a). These
violations of the FCRA and Regulation V also constitute independent violations of
the Consumer Financial Protection Act (CFPA), 12 U.S.C. § 5536(a)(1)(A). Under
§§ 1053 and 1055 of the Consumer Financial Protection Act of 2010 (CFPA), 12
U.S.C. §§ 5563, 5565, the Bureau issues this Consent Order (Consent Order).
I.
Jurisdiction
1. The Bureau has jurisdiction over this matter under §§ 1053 and 1055 of the
CFPA, 12 U.S.C. §§ 5563 and 5565, and § 621 of the FCRA, 15 U.S.C. §
1681s(b)(1)(H).
II.
Stipulation
2. Respondent has executed a “Stipulation and Consent to the Issuance of a
Consent Order,” dated December 14, 2020 (Stipulation), which is
incorporated by reference and is accepted by the Bureau. By this Stipulation,
Respondent has consented to the issuance of this Consent Order by the
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Bureau under §§ 1053 and 1055 of the CFPA, 12 U.S.C. §§ 5563, 5565,
without admitting or denying any of the findings of fact or conclusions of
law,
except that Respondent admits the facts necessary to establish the
Bureau’s jurisdiction over Respondent and the subject matter of this action.
III.
Definitions
3. The following definitions apply to this Consent Order:
a. “Board” means Respondent’s duly-elected and acting Board of Directors.
b. “Effective Date” means the date on which the Consent Order is entered
on the administrative docket.
c. “Regional Director” means the Regional Director for the Southeast
Region for the Office of Supervision for the Bureau of Consumer
Financial Protection, or his or her delegate.
d. “Related Consumer Action” means a private action by or on behalf of
one or more consumers or an enforcement action by another
governmental agency brought against Respondent based on substantially
the same facts as described in Section IV of this Consent Order.
e. “Relevant Period” includes from January 2016 through August 2019.
f. “Respondent”
means Santander Consumer USA Inc. and its successors
and assigns.
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IV.
Bureau Findings and Conclusions
The Bureau finds the following:
4. Respondent is a specialized consumer finance company headquartered
in Fort Worth, Texas. Its primary business is the indirect origination of retail
installment contracts and vehicle leases through manufacturer-affiliated dealers or
large, independent dealers. In 2019, Respondent reported $31.3 billion in
originations across vehicle retail installment contracts and leases, and it reported
$994 million in net income.
5. Respondent is a “covered person” under 12 U.S.C. § 5481(6).
6. Respondent furnishes consumer credit information to CRAs and is
therefore subject to the FCRA and Regulation V. 15 U.S.C. § 1681 et seq.; 12
C.F.R. pt. 1022.
7. Respondent furnishes consumer information on the vehicle retail
installment contracts and leases it services by sending monthly data files to CRAs
using a data format called Metro 2. Each line of consumer data relating to one
individual credit account is commonly known as a tradeline, and each tradeline can
be composed of more than 40 data fields, such as the consumer’s name, the type of
account, and the status of the account.
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Findings and Conclusions as to Respondent’s Furnishing of Information
That It Knew or Had Reasonable Cause to Believe Was Inaccurate
8. From at least January 2016 to at least August 2019, Respondent
furnished consumer information to CRAs that contained systemic errors. In many
instances, the errors should have been readily apparent because the data for certain
accounts was internally inconsistent.
9. Moreover, Respondent received error reports from at least one CRA
that described these errors in the company’s data files. In addition, Respondent’s
internal audits show that it was aware of at least one of these errors as of 2016.
Despite being on notice of these errors, Respondent continued to make them for
years.
10. Several of Respondent’s errors related to its use of the Date of First
Delinquency (DOFD) field in its furnishing data.
11. Section 605(a)(5) of the FCRA requires that negative information
such as late payments must be removed from a consumer’s credit report after that
information is seven years old. 15 U.S.C. § 1681(a)(5). The date by which such
information must be removed is determined by the date on which the account first
became delinquent—the “date of first delinquency.” This provision allows
consumers to rebuild their credit following a long period of delinquency.
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Reporting an Incorrect Date of First Delinquency
12. In more than 23 million instances between January 2016 and August
2019, or 35 percent of all instances when Respondent furnished a DOFD during
this time period, the DOFD furnished by Respondent equaled the Date of Account
Information (DOAI) for the account. The DOAI is the date on which Respondent
pulled information from its system of record each month in order to send to CRAs.
13. When furnishing in the Metro 2 format, furnishers like Respondent
must provide the DOAI so that date is updated each month until the company stops
reporting on a tradeline. Even if the DOFD did equal the DOAI at one point for a
particular account, it is extremely unlikely that the DOFD would equal the DOAI
for two or more months.
14. A CRA informed Respondent that it was reporting DOFDs that were
more recent than previously reported DOFDs on derogatory accounts --an error
that could result from using the DOAI in the DOFD field. Respondent received
these reports from January 2015 through June 2016 and again in December 2017
and early 2019.
15. In more than 22 million instances when Respondent reported a DOFD
that equaled the DOAI, the company also reported that the accounts were current.
DOFD should not typically be reported for current accounts. Respondent knew
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about this issue since at least September 2016, when an internal audit showed that
the company reported DOFDs on current accounts. In November 2016, another
internal audit showed the same error.
16. In almost 450,000 of the instances when Respondent reported a
DOFD that equaled the DOAI, the company also reported an account status
showing a serious delinquency (e.g., account was charged-off or at least 90 days
delinquent, or the vehicle was already repossessed). The DOAI is typically close in
time to the date of furnishing because account information is ordinarily pulled for
furnishing purposes shortly before it is transmitted to CRAs. By contrast, it would
be extremely unusual to have a DOFD close to the date of furnishing on a seriously
delinquent account.
Reporting a Date of First Delinquency for Accounts that Were Not Delinquent
17. In at least an additional 890,700 instances between January 2016 and
August 2019, Respondent reported a DOFD at the same time it reported
contradictory information suggesting that the accounts in question were not in fact
delinquent. Respondent should not have reported DOFDs for accounts that were
current, paid in full (and not delinquent immediately beforehand), or previously
delinquent but subsequently became current. If, on the other hand, the DOFD was
accurate and the accounts referenced above were delinquent, then Respondent
should not have reported them as current, paid in full, or cured. Either way,
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Respondent furnished incorrect information for each of these tradelines.
Reporting Other Types of Inaccurate Information
18. Respondent also furnished inconsistent information regarding whether
accounts were open or closed and whether consumers were carrying a balance or
obligated to make future payments. To the extent that the company inaccurately
reported whether accounts were open or closed or that consumers owed money that
they did not actually owe, these errors could have negatively impacted consumers’
credit scores and access to credit.
19. For example, in at least 367,070 instances between January 2016 and
August 2019, Respondent furnished information indicating that accounts were
“paid in full, charged off,” along with contradictory information suggesting the
tradelines were still open. The company received error reports from a CRA
highlighting this inconsistency from January 2015 through June 2016 and again in
December 2017 and early 2019.
20. Respondent also reported in approximately 250,000 instances that
accounts had a current balance and simultaneously furnished contradictory
information, such as also furnishing information indicating that the accounts were
paid in full. The company had received error reports from a CRA since January
2015 advising of this error.
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21. Prior to June 2017, Respondent did not consistently, for all its retail
installment contract and lease portfolios, clearly and conspicuously specify to
consumers an address where consumers could notify the company that information
the company furnished was inaccurate.
22. Section 623(a)(1)(A) of FCRA prohibits a furnisher from furnishing
any information relating to a consumer to any CRA if it knows or has reasonable
cause to believe that the information is inaccurate. 15 U.S.C. § 1681s-2(a)(1)(A).
23. In numerous instances, Respondent furnished consumer credit
information to CRAs that contained inaccurate information about consumers’
credit accounts.
24. In many instances, Respondent knew or had reasonable cause to
believe that the information was inaccurate because this information was internally
inconsistent. In many other instances, the company furnished a DOFD that equaled
the DOAI, which was extremely unlikely to be accurate for tradelines furnished
over multiple months for multiple accounts. Moreover, the company continued to
furnish this inaccurate information even after it had been notified about these types
of errors by CRAs.
25. Therefore, prior to June 2017, Respondent violated § 623(a)(1)(A) of
the FCRA, 15 U.S.C. § 1681s-2(a)(1)(A).
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Findings and Conclusions as to Respondent’s Failure to
Promptly Update and Correct Inaccurate Information
26. Section 623(a)(2) of FCRA requires furnishers to promptly update and
correct information they have furnished to a CRA that they determine is not
complete or accurate. 15 U.S.C. § 1681s-2(a)(2).
27. As detailed above, in numerous instances from at least January 2016
to at least August 2019, Respondent furnished to CRAs information relating to
consumers that was not complete or accurate.
28. In many instances, Respondent furnished information that was
inconsistent with its internal account information and inaccurate. In many other
instances, Respondent furnished a DOFD that equaled the DOAI, which was
extremely unlikely to be accurate for tradelines furnished over multiple months for
multiple accounts.
29. In addition, Respondent received multiple error reports from at least
one CRA that allowed it to determine that the information it furnished was not
complete or accurate, and Respondent’s internal audits showed at least one of the
errors listed above.
30. Despite this knowledge, Santander did not promptly update or correct
the incomplete or inaccurate information it furnished. To the contrary, in many
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cases Santander continued reporting inconsistent information for years after being
alerted to its errors.
31. Therefore, Santander violated section 623(a)(2) of the FCRA, 15
U.S.C. § 1681s-2(a)(2).
Findings and Conclusions as to Failing to Report a DOFD
32. In at least 9,730 instances between January 2016 and August 2019,
Respondent failed to report a DOFD, leaving this field blank, when it reported
other information indicating that the accounts were more than 120 days delinquent
or had been charged off. This error could have caused incorrect delinquency
information to remain on a consumer’s credit report for longer than it should, and,
in turn, this could potentially result in another credit report user charging a higher
cost of credit or denying credit to an affected consumer.
33. From January 2015 through June 2016 and again in December 2017
and early 2019, a CRA sent Respondent monthly error reports showing that the
company was not always reporting DOFDs when it reported other information
indicating that the accounts were delinquent.
34. Despite this information, through at least August 2019, Respondent
continued to fail to furnish DOFDs while also furnishing information indicating
that the accounts had been placed for collection, charged-off, subject to similar
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action, or were at least 120 days delinquent (which is a typical time period for
moving an account to collection and charge-off).
35. Section 623(a)(5)(A) of the FCRA requires that an entity provide the
DOFD for any account placed for collection, charged to profit or loss, or subjected
to any similar action. 15 U.S.C. § 1681s-2(a)(5)(A). Thus, when Respondent failed
to report a DOFD in the 9,730 instances cited above, Respondent violated section
623(a)(5)(A) of the FCRA, 15 U.S.C. § 1681s-2(a)(5)(A).
Findings and Conclusions as to Deficient Policies and Procedures
36. Respondent failed to establish and implement reasonable written
policies and procedures regarding the accuracy and integrity of the information
relating to consumers that it furnished to CRAs. In 2016, Respondent’s policies
and procedures did not require employees to add information required in the Metro
2 file after the company sold accounts to another company. When furnishers like
Respondent sell accounts, they are required to identify the purchaser.
37. Respondent submitted Metro 2 correction files for at least some
accounts that it sold. But at least 89,400 of these correction files improperly
omitted the name of the account purchaser.
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38. Until 2018, Respondent did not have any written policies or
procedures requiring employees to update its internal records concerning consumer
accounts after it determined that the internal records contained errors.
39. When a furnisher like Respondent determines there is an error in one
of its tradelines, it is required to correct and update the information previously
furnished.
40. For those who furnish to the national CRAs, this task is accomplished
by submitting changes to the CRAs. Simultaneously, the furnisher must correct its
internal records to ensure that it does not send a file with the same error the next
month. Respondent had no written policies or procedures requiring its employees
to make these changes.
41. Respondent was aware that its credit reporting policies and procedures
contained important misstatements and deficiencies. In 2016, for example, an
internal audit found that “written procedures do not exist that would govern daily
reporting activities within the [Credit Bureau Reporting] department.”
42. Another 2016 audit found that Respondent’s policies and procedures
were “not sufficient” and pointed out specific gaps in the company’s procedures.
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43. The same audit also noted that Respondent had no training for
electronically submitting consumer data to the CRAs or protocols to measure
whether such information was successfully transmitted to CRAs.
44. Regulation V requires furnishers to “establish and implement
reasonable written policies and procedures regarding the accuracy and integrity of
the information relating to consumers that it furnishes to a consumer reporting
agency.” 12 C.F.R. § 1022.42(a). The policies and procedures must be appropriate
to the nature, size, complexity, and scope of the furnisher’s activities. 12 C.F.R. §
1022.42(a).
45. Regulation V requires that furnishers’ policies and procedures should
address establishing and implementing internal controls for accuracy and integrity
of information about consumers furnished to CRAs; training staff that furnishes
information; providing appropriate and effective oversight of service providers;
deleting, updating, and correcting information in the furnisher’s records, as
appropriate, to avoid furnishing inaccurate information; designing appropriate
technology to communicate with CRAs; and conducting a periodic evaluation of its
practices.
46. Between 2016 and 2018, Respondent failed to establish and
implement reasonable written policies and procedures that related to the accuracy
and integrity of the consumer information it was furnishing to CRAs. Respondent’s
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written policies and procedures regarding the accuracy and integrity of the
consumer information that it furnishes to CRAs were inadequate given the high
volume and complexity of Respondent’s furnishing activities and were not
reasonable or appropriate given the nature, size, complexity, and scope of
Respondent’s activities.
47. Therefore, Respondent violated Regulation V by failing to establish
and implement the required reasonable written policies and procedures, 12 C.F.R.
§ 1022.42(a).
Findings and Conclusions as to the Consumer Financial Protection Act
48. Under the CFPA, a covered person’s violation of a Federal consumer
financial law, which includes enumerated consumer laws and rules thereunder,
violates the CFPA. 12 U.S.C. §§ 5536(a)(1)(A), 5481(14).
49. The FCRA and Regulation V are Federal consumer financial laws.
50. Respondent’s violations of the FCRA and Regulation V, described in
Paragraphs 8-47, constitute violations of § 1036(a)(1)(A) of the CFPA. 12 U.S.C. §
5536(a)(1)(A)
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ORDER
V.
Conduct Provisions
IT IS ORDERED, under §§ 1053 and 1055 of the CFPA, that:
51. Respondent and its officers, agents, servants, employees, and
attorneys who have actual notice of this Consent Order, whether acting directly or
indirectly, may not violate (i) § 623(a)(1)(A) of the FCRA, 15 U.S.C. § 1681s-
2(a)(1)(A); (ii) § 623(a)(2) of the FCRA, 15 U.S.C. § 1681s-2(a)(2); (iii) §
623(a)(5)(A) of the FCRA, 15 U.S.C. § 1681s-2(a)(5)(A); or (iv) 12 C.F.R. §
1022.42(a), and in connection with furnishing consumer credit information, must
take the following affirmative actions:
a. Correct all inaccuracies and errors described in Section IV of this
Consent Order and update affected tradelines accordingly to the extent
data is available;
b. Each month, examine Respondent’s furnishing data for the errors
described in Section IV of this Consent Order, take all reasonable steps to
identify such errors, and resolve identified errors before providing the
data to any CRA;
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c. Establish and implement reasonable written policies and procedures
regarding the accuracy and integrity of the information relating to
consumers that Respondent furnishes to a CRA;
d. Examine and, where necessary, establish and implement changes to its
policies and procedures and the practices of its employees to ensure that
its employees properly route, categorize, investigate, and respond to all
direct disputes; and
e. Retain all direct disputes and all response letters for at least five years.
VI.
Compliance Plan
IT IS FURTHER ORDERED that:
52. Within 45 days of the Effective Date, Respondent must submit to the
Regional Director for review and determination of non-objection a comprehensive
compliance plan designed to ensure that Respondent’s consumer credit furnishing
practices comply with all applicable Federal consumer financial laws and the terms
of this Consent Order (Compliance Plan). The Compliance Plan must include, at a
minimum:
a. detailed steps for addressing each action required by this Consent Order;
and
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b. specific timeframes and deadlines for implementation of each step.
53. The Regional Director will have the discretion to make a
determination of non-objection to the Compliance Plan or direct Respondent to
revise it. If the Regional Director directs Respondent to revise the Compliance
Plan, Respondent must revise and resubmit the Compliance Plan to the Regional
Director within 15 days.
54. After receiving notification that the Regional Director has made a
determination of non-objection to the Compliance Plan, Respondent must
implement and adhere to the steps, recommendations, deadlines, and timeframes
outlined in the Compliance Plan.
VII.
Role of the Board
IT IS FURTHER ORDERED that:
55. The Board or a committee thereof must review all submissions
(including plans, reports, programs, policies, and procedures) required by this
Consent Order prior to submission to the Bureau.
56. Although this Consent Order requires Respondent to submit certain
documents for review or non-objection by the Regional Director, the Board will
have the ultimate responsibility for proper and sound management of Respondent
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and for ensuring that Respondent complies with the laws that the Bureau enforces,
including Federal consumer financial laws and this Consent Order.
57. In each instance that this Consent Order requires the Board to ensure
adherence to, or perform certain obligations of Respondent, the Board or a
committee thereof must:
a. Authorize whatever actions are necessary for Respondent to fully comply
with the Consent Order;
b. Require timely reporting by management to the Board on the status of
compliance obligations; and
c. Require timely and appropriate corrective action to remedy any material
non-compliance with Board directives related to this Section.
VIII.
Order to Pay Civil Money Penalty
IT IS FURTHER ORDERED that:
58. Under § 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the
violations of law described in Section IV of this Consent Order, and taking into
account the factors in 12 U.S.C. § 5565(c)(3), Respondent must pay a civil money
penalty of $4.75 million to the Bureau.
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59. Within 10 days of the Effective Date, Respondent must pay the civil
money penalty by wire transfer to the Bureau or to the Bureau’s agent in
compliance with the Bureau’s wiring instructions.
60. The civil money penalty paid under this Consent Order will be
deposited in the Civil Penalty Fund of the Bureau as required by § 1017(d) of the
CFPA, 12 U.S.C. § 5497(d).
61. Respondent, for all purposes, must treat the civil money penalty paid
under this Consent Order as a penalty paid to the government. Regardless of how
the Bureau ultimately uses those funds, Respondent may not:
a. Claim, assert, or apply for a tax deduction, tax credit, or any other tax
benefit for any civil money penalty paid under this Consent Order; or
b. Seek or accept, directly or indirectly, reimbursement or indemnification
from any source, including but not limited to payment made under any
insurance policy, with regard to any civil money penalty paid under this
Consent Order.
62. To preserve the deterrent effect of the civil money penalty in any
Related Consumer Action, Respondent may not argue that Respondent is entitled
to, nor may Respondent benefit by, any offset or reduction of any compensatory
monetary remedies imposed in the Related Consumer Action because of the civil
money penalty paid in this action or because of any payment that the Bureau
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makes from the Civil Penalty Fund. If the court in any Related Consumer Action
offsets or otherwise reduces the amount of compensatory monetary remedies
imposed against Respondent based on the civil money penalty paid in this action or
based on any payment that the Bureau makes from the Civil Penalty Fund,
Respondent must, within 30 days after entry of a final order granting such offset or
reduction, notify the Bureau, and pay the amount of the offset or reduction to the
U.S. Treasury. Such a payment will not be considered an additional civil money
penalty and will not change the amount of the civil money penalty imposed in this
action.
63. In the event of any default on Respondent’s obligations to make
payment under this Consent Order, interest, computed under 28 U.S.C. § 1961, as
amended, will accrue on any outstanding amounts not paid from the date of default
to the date of payment, and will immediately become due and payable.
64. Respondent must relinquish all dominion, control, and title to the
funds paid to the fullest extent permitted by law and no part of the funds may be
returned to Respondent.
65. Under 31 U.S.C. § 7701, Respondent, unless it already has done so,
must furnish to the Bureau its taxpayer-identification numbers, which may be used
for purposes of collecting and reporting on any delinquent amount arising out of
this Consent Order.
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66. Within 30 days of the entry of a final judgment, consent order, or
settlement in a Related Consumer Action, Respondent must notify the Regional
Director of the final judgment, consent order, or settlement in writing. That
notification must indicate the amount of redress, if any, that Respondent paid or is
required to pay to consumers and describe the consumers or classes of consumers
to whom that redress has been or will be paid.
IX.
Reporting Requirements
IT IS FURTHER ORDERED that:
67. Respondent must notify the Bureau of any development that may
affect compliance obligations arising under this Consent Order, including but not
limited to a dissolution, assignment, sale, merger, or other action that would result
in the emergence of a successor company; the creation or dissolution of a
subsidiary, parent, or affiliate that engages in any acts or practices subject to this
Consent Order; the filing of any bankruptcy or insolvency proceeding by or against
Respondent; or a change in Respondent’s name or address. Respondent must
provide this notice, if practicable, at least 30 days before the development, but in
any case no later than 14 days after the development.
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68. Within 7 days of the Effective Date, Respondent must designate at
least one telephone number and email, physical, and postal addresses as points of
contact that the Bureau may use to communicate with Respondent.
69. Respondent must report any change in the information required to be
submitted under Paragraph 68 at least 30 days before the change or as soon as
practicable after the learning about the change, whichever is sooner.
70. Within 90 days of the Effective Date, and again one year after
receiving notice of non-objection to the Compliance Plan, Respondent must submit
to the Regional Director an accurate written compliance progress report
(Compliance Report), sworn to under penalty of perjury, which, at a minimum:
a. lists each applicable paragraph and subparagraph of the Order and
describes in detail the manner and form in which Respondent has
complied with each such paragraph and subparagraph of the Consent
Order;
b. describes in detail the manner and form in which Respondent has
complied with the Compliance Plan; and
c. attaches a copy of each Order Acknowledgment obtained under
Paragraph 74, unless previously submitted to the Bureau.
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X.
Order Distribution and Acknowledgment
IT IS FURTHER ORDERED that:
71. Within 7 days of the Effective Date, Respondent must submit to the
Regional Director an acknowledgment of receipt of this Consent Order, sworn
under penalty of perjury.
72. Within 30 days of the Effective Date, Respondent must deliver a copy
of this Consent Order to each of its board members and executive officers, as well
as to any managers, employees, service providers, or other agents and
representatives who have responsibilities related to the subject matter of the
Consent Order.
73. For 5
years from the Effective Date, Respondent must deliver a copy
of this Consent Order to any business entity resulting from any change in structure
referred to in Section IX, any future board members and executive officers, as well
as to any managers, employees, Service Providers, or other agents and
representatives who will have responsibilities related to the subject matter of the
Consent Order before they assume their responsibilities.
74. Respondent must secure a signed and dated statement acknowledging
receipt of a copy of this Consent Order, ensuring that any electronic signatures
comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., within
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30 days of delivery, from all persons receiving a copy of this Consent Order under
this Section.
75. Within 90 days of the Effective Date, Respondent must provide the
Bureau with a list of all persons and their titles to whom this Consent Order was
delivered through that date under Paragraphs 72-73 and a copy of all signed and
dated statements acknowledging receipt of this Consent Order under Paragraph 74.
XI.
Recordkeeping
IT IS FURTHER ORDERED that:
76. Respondent must create and retain the following business records:
a. all documents and records necessary to demonstrate full compliance with
each provision of this Consent Order, including all submissions to the
Bureau.
b. all consumer complaints relating to furnishing consumer credit
information (whether received directly or indirectly, such as through a
third party), and any responses to those complaints or requests.
c. records showing, for each employee providing services related to
Respondent’s furnishing practices, that person’s name, telephone
number, email, physical, and postal address, job title or position, dates of
service, and, if applicable, the reason for termination.
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d. Records showing, for each service provider providing services related to
Respondent’s furnishing practices, the name of a point of contact, and
that person’s telephone number, email, physical, and postal address, job
title or position, dates of service, and, if applicable, the reason for
termination.
77. Respondent must make the documents identified in Paragraph 76
available to the Bureau upon the Bureau’s request.
XII.
Notices
IT IS FURTHER ORDERED that:
78. Unless otherwise directed in writing by the Bureau, Respondent must
provide all submissions, requests, communications, or other documents relating to
this Consent Order in writing, with the subject line, “In re Santander Consumer
USA Inc., File No. 2020-BCFP- ,” and send them by overnight courier or
first-class mail to the below address and contemporaneously by email to
Enforcement_Compliance@cfpb.gov:
James L. Carley
Regional Director, Bureau Southeast
Bureau of Consumer Financial Protection
1700 G Street, N.W.
Washington D.C. 20552
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XIII.
Cooperation with the Bureau
IT IS FURTHER ORDERED that:
79. Respondent must cooperate fully with the Bureau in this matter and in
any investigation related to or associated with the conduct described in Section IV
of this Consent Order. Respondent must provide truthful and complete
information, evidence, and testimony. Respondent must cause Respondent’s
officers, employees, representatives, or agents to appear for interviews, discovery,
hearings, trials, and any other proceedings that the Bureau may reasonably request
upon 10 days written notice, or other reasonable notice, at such places and times as
the Bureau may designate, without the service of compulsory process.
XIV.
Compliance Monitoring
IT IS FURTHER ORDERED that:
80. Within 14 days of receipt of a written request from the Bureau,
Respondent must submit additional Compliance Reports or other requested non-
privileged information, related to requirements of this Consent Order, which must
be made under penalty of perjury; provide sworn testimony related to requirements
of this Consent Order and Respondents’ compliance with those requirements; or
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produce non-privileged documents related to requirements of this Consent Order
and Respondents’ compliance with those requirements.
81. Respondent must permit Bureau representatives to interview about the
requirements of this Consent Order and Respondent’s compliance with those
requirements any employee or other person affiliated with Respondent who has
agreed to such an interview. The person interviewed may have counsel present.
82. Nothing in this Consent Order will limit the Bureau’s lawful use of
civil investigative demands under 12 C.F.R. § 1080.6 or other compulsory process.
XV.
Modifications to Non-Material Requirements
IT IS FURTHER ORDERED that:
83. Respondent may seek a modification to non-material requirements of
this Consent Order (e.g., reasonable extensions of time and changes to reporting
requirements) by submitting a written request to the Regional Director.
84. The Regional Director may, in his or her discretion, modify any non-
material requirements of this Consent Order (e.g., reasonable extensions of time
and changes to reporting requirements) if he or she determines good cause justifies
the modification. Any such modification by the Regional Director must be in
writing.
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XVI.
Administrative Provisions
IT IS FURTHER ORDERED that:
85. The provisions of this Consent Order do not bar, estop, or otherwise
prevent the Bureau from taking any other action against Respondent, except as
described in Paragraph 86. Further, for the avoidance of doubt, the provisions of
this Consent Order do not bar, estop, or otherwise prevent any other person or
governmental agency from taking any action against Respondent.
86. The Bureau releases and discharges Respondent from all potential
liability for law violations that the Bureau has or might have asserted based on the
practices described in Section IV of this Consent Order, to the extent such
practices occurred before the Effective Date and the Bureau knows about them as
of the Effective Date. The Bureau may use the practices described in this Consent
Order in future enforcement actions against Respondent and its affiliates,
including, without limitation, to establish a pattern or practice of violations or the
continuation of a pattern or practice of violations or to calculate the amount of any
penalty. This release does not preclude or affect any right of the Bureau to
determine and ensure compliance with the Consent Order, or to seek penalties for
any violations of the Consent Order.
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87. This Consent Order is intended to be, and will be construed as, a final
Consent Order issued under § 1053 of the CFPA, 12 U.S.C. § 5563, and expressly
does not form, and may not be construed to form, a contract binding the Bureau or
the United States.
88. This Consent Order will terminate 5 years from the Effective Date or
5 years from the most recent date that the Bureau initiates an action alleging any
violation of the Consent Order by Respondent. If such action is dismissed or the
relevant adjudicative body rules that Respondent did not violate any provision of
the Consent Order, and the dismissal or ruling is either not appealed or upheld on
appeal, then the Consent Order will terminate as though the action had never been
filed. The Consent Order will remain effective and enforceable until such time,
except to the extent that any provisions of this Consent Order have been amended,
suspended, waived, or terminated in writing by the Bureau or its designated agent.
89. Calculation of time limitations will run from the Effective Date and be
based on calendar days, unless otherwise noted.
90. Should Respondent seek to transfer or assign all or part of its
operations that are subject to this Consent Order, Respondent must, as a condition
of sale, obtain the written agreement of the transferee or assignee to comply with
all applicable provisions of this Consent Order.
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91. The provisions
of
this Consent Order will be enforceable by the
Bureau. For any violation
of
this Consent Order, the Bureau may impose the
maximum amount
of
civil money penalties allowed under § 1055( c)
of
the CFP A,
12
U.S.C. § 5565(c). In connection with any attempt by the Bureau to enforce this
Consent Order
in
federal district court, the Bureau may serve Respondent wherever
Respondent may
be
found and Respondent may not contest that court's personal
jurisdiction over Respondent.
92. This Consent Order and the accompanying Stipulation contain the
complete agreement between the parties. The parties have made no promises,
representations,
or
warranties other than what is contained
in
this Consent Order
and the accompanying Stipulation. This Consent Order and the accompanying
Stipulation supersede any prior oral
or
written communications, discussions, or
understandings.
93. Nothing in this Consent Order or the accompanying Stipulation may
be construed as allowing Respondent, its Board, officers,
or
employees to violate
any law, rule,
or
regulation.
IT IS SO ORDERED, this
tftt~
ay
of
December, 2020
Kathleen
L. Kraninger
Director
Bureau
of
Consumer Financial Protection
31
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