Santander Consumer USA Receives DOJ Subpoena
Santander Consumer USA said today in an SEC filing that it recently received a civil subpoena from the U.S. Department of Justice (DOJ) under the Financial Institutions Reform, Recovery And Enforcement Act Of 1989 requesting documents and communications that, among other things, relate to the underwriting and securitization of nonprime auto loans since 2007.
Earlier this week General Motors Financial Company, Inc. filed a document at SEC indicating that it, too, had been served a similar subpoena. The investigation is being led by the Southern District of New York DOJ office.
Legal experts have told Auto Finance News that the DOJ requests could signal more investigations of subprime auto companies that securitize their subprime auto loans in the ABS market.
A SCUSA spokesperson told Auto Finance News that other than what is publicly disclosed in company filings, SCUSA does not comment on legal or regulatory matters.
A spokesperson from the US Attorney’s Office for the Southern District of New York would neither confirm nor deny that it had issued the SCUSA subpoena.
