Debt pile-up in US car market sparks subprime fear - FT
In an echo of the subprime housing crash, delinquencies of US car loans are rising amid allegations of mis-selling..
"Meantime, she has spent another $7,000 on repairs to a “terrible” car that would now fetch about $750 in a sale. “I was basically putty in their hands, totally swept off my rational sensible self, drawn into this vortex,” she says. Ms Boluch’s story — which helped trigger an investigation by the state attorney-general and a $22m fine in March for Santander Consumer — is just one of many from a seven-year boom in car loans that has strong echoes of the pre-crisis mortgage"
Meanwhile, the legal troubles are not over for the subprime lenders. Ally, Santander Consumer and others have been subpoenaed by federal prosecutors as part of an investigation into subprime auto practices and related securitisation activities, according to public filings.
New York’s Department of Financial Services is also probing several car finance companies, according to a person familiar with its supervisory programme.
Auto Lender Santander Checked Income on Just 8% in Subprime ABS
https://www.bloomberg.com/news/articles/2017-05-22...
Santander to pay $26m to settle subprime auto-loan case
https://www.bostonglobe.com/business/2017/03/29/sa...
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