Triad Financial stopped offering car loans through auto dealerships in 2008, according to Sub Prime Auto News. The company continued to offer vehicle loans direct to consumers through RoadLoans.com until 2010, when its auto loan portfolio was purchased by Santander Consumer USA, reports Bloomberg.Continue Reading
Triad Financial specialized in nonprime auto loans for customers with unfavorable credit histories. In 2009, after it ceased offering loans through dealers, the company briefly repositioned itself as a third-party loan servicer, offering account administration, payment processing, collections, repossession and records management to auto dealers, finance companies and investors, reports InsideARM.com.
As of December 2015, Santander Consumer USA is now one of the largest providers of automobile financing in the country, and has come under legal scrutiny for its business practices. In February 2015, Santander paid more than $9 million to settle a case with the U.S. Justice Department for improper repossession of vehicles owned by members of the military. In August 2015, the company revealed another investigation by the Department of Justice and the Consumer Financial Protection Bureau, according to Consumerist. The CFPB has recommended that prosecutors investigate Santander for violations of the Equal Credit Opportunity Act, which makes it illegal to consider personal characteristics like race or gender when underwriting loans.Learn more about Credit & Lending