New York's banking regulator has issued subpoenas to TD Bank and Santander over possible consumer abuses in the banks' subprime auto lending divisions, a source familiar with the matter said Friday.
The state Department of Financial Services has also subpoenaed the auto financing divisions of several major car companies, including Ford, Honda, Volkswagen and Nissan, the source said.
Spokespeople for Nissan, Santander and Volkswagen declined to comment. Spokespeople for Ford and Honda did not immediately provide comment. A TD spokesman declined to discuss the matter beyond stating that the Canadian bank's auto finance unit does not make subprime loans in the U.S.
The investigation marks the latest move in an intensifying effort by regulators to keep tabs on the booming market for car loans to borrowers with low credit scores.
Additionally, New York District Attorney Cyrus Vance recently issued a subpoena to
News of the New York Department of Financial Services investigation was reported by