U.S. Department of Justice | Auto Finance News | Auto Finance News

BMW Financial Settles $2M Case Over Disputed Lease Refunds to Servicemembers

BMW Financial Services reached a settlement with the U.S. Department of Justice for $2 million last week over disputed refund lease charges to servicemembers. The Justice Department claims that BMW failed to properly refund servicemembers who sought to legally terminate their lease when sent on active deployment. Woodcliff Lake, N.J.-based BMW Financial Services settled the case […]

Wells Fargo Pays $5.4M for 450 Additional Illegal Servicemember Repos

Wells Fargo Dealer Services on Tuesday agreed to pay the Justice Department an additional $5.4 million to compensate 450 servicemembers whose vehicles were illegally repossessed and not identified through the original 2016 settlement.    In 2016, the company agreed to settle claims that it had violated the Servicemembers Civil Relief Act by improperly repossessing vehicles from […]

5 Steps of Santander’s Compliance Revival

Santander Consumer USA has not had an easy two years when it comes to regulatory compliance. In 2015, the company started getting hit with consent orders from the Federal Reserve for failure to pass a stress test. Later that year, the Department of Justice sent a consent order alleging the company violated the Servicemembers Civil Relief […]

Santander Pays $26M For Loans Deemed ‘Unfair’

Santander Consumer USA entered into a written agreement with the Federal Reserve Bank of Boston on March 21, and agreed to pay $25.9 million to resolve an investigation in two states regarding the financing and securitization of subprime auto loans, the company revealed in a Securities and Exchange Commission filing today. Investigations were being conducted by attorneys general […]

DOJ Thumbs-Up Clears $4 Billion Cox-Dealertrack Buyout

Cox Automotive completed its $4 billion deal to acquire Dealertrack Technologies on Thursday, Cox said. The U.S. Department of Justice had blocked the acquisition, which was originally announced in June. The deal was postponed several times as the companies sought regulatory approval. Initially, the two companies said the delays were “routine.” But the DOJ said earlier […]

Santander Consumer May Face Enforcement on Dealer Markup

Santander Consumer USA is potentially facing an enforcement action from the U.S. Department of Justice and the Consumer Financial Protection Bureau for alleged violations in dealer markups. SCUSA said in its second-quarter report filed with the Securities and Exchange Commission on Monday that on July 31, “the CFPB notified the Company that it had referred […]

Ally Financial Reveals Subpoena From DOJ

Ally Financial Inc. is the latest auto finance company to reveal it has received a subpoena from the U.S. Department of Justice. The subpoena, issued in connection to Ally’s subprime lending practices and securitization activities, was revealed by Ally in an 8-K filed with the Securities and Exchange Commission yesterday. In the 8-K, Ally wrote […]