b'the lease agreement. The SCRA also requires that allAcceptance Corporation made high-interest auto loans lease amounts paid in advance be refunded to thethat the company knew or should have known many servicemember. Here, the DOJ alleged that Americanborrowers would be unable to repay based on the Hondas customers often paid an up-front fee at the timeborrowers credit score or debt-to-income ratios. The of signing their lease agreement, in the form of either aattorney general also alleged that Credit Acceptance cash payment, credit for a trade-in vehicle, or rebatesCorporation did not expect borrowers to repay their and other credits, and that those amounts lowered theloans in full and structured its operations to earn monthly payment on the vehicle. However, the DOJsubstantial profits on high-interest auto loans even alleged that American Honda failed to refund the vehiclewhen customers defaulted, including through how it trade-in credit that was applied toward reducing thescaled its payments to dealers and pooled the loans. monthly lease amount when servicemembers lawfullyThe AG alleged that Credit Acceptance Corporation terminated their leases under the SCRA. As a part of thewas able to profit off these defaulted loans because settlement, American Honda agreed to pay up to $1.59it did not expect borrowers to pay their loans in full million in compensation to 714 servicemembers, a $64,715and scaled its payments to dealers accordingly and civil money penalty, and to adopt new SCRA-compliantpooled loans to further reduce its own risk. Under the policies and training procedures.settlement agreement, Credit Acceptance Corporation Also in September, the DOJ entered into a consentagreed to pay a total of $27.2 million to an independent order with Santander Consumers USA Inc., pursuanttrust to be used for consumer relief and to provide debt to which Santander agreed to pay more than $134,000relief and credit repair to Massachusetts borrowers.to resolve allegations that the company had violatedCFPB Enters Into Consent Order with California Auto the SCRA. The DOJ began investigating SantanderFinance Over Hidden Finance Chargesafter receiving a complaint from U.S. Army CaptainIn May, the CFPB entered into a consent order with Eric McDowell, who said that after being deployed to3rd Generation, Inc., a California corporation doing Afghanistan, Santander denied his request to terminatebusiness as California Auto Finance, to resolve his vehicle lease early and refund lease amounts thatallegations that the company had failed to disclose he had paid in advance. As a result of its investigation,finance charges to consumers in violation of the CFPA. the DOJ determined that Santander had also violatedCalifornia Auto Finance services subprime auto loans nine other servicemembers rights under the SCRA. Tooriginated by car dealerships and then purchased resolve these claims, Santander agreed to pay $94,282by California Auto Finance. The CFPB alleged that in compensation to ten servicemembers, a $40,000California Auto Finance charged consumers interest civil penalty, and to update its SCRA procedures andon late payments of loss damage waiver fees without training. Santander previously settled an SCRA lawsuitdisclosing those charges to borrowers. The CFPB filed by the DOJ in 2015 concerning Santandersalleged that California Auto Finance charged about repossession of 1,112 servicemembers vehicles.5,800 consumer accounts a total of $565,813 between Credit Acceptance Corporation to Pay More Than2016 and 2021. To resolve these claims California Auto $27 Million to Resolve Unfair and DeceptiveFinance agreed to pay $50,000 in civil penalties to the Practices Allegations CFPB. The consent order also prohibits the company In September, the Massachusetts Attorney Generalfrom continuing to charge interest on loss damage announced that Credit Acceptance Corporation hadwaiver fees without first clearly and conspicuously agreed to pay more than $27 million to resolve claimsdisclosing those charges to borrowers.that it engaged in unfair and deceptive auto loan practices. The Attorney General alleged that Credit 51'