Netherlands Fines Santander Over "Irresponsible" Lending

The Financial Markets Authority (AFM) in the Netherlands has fined Santander Bank approximately €3.7 million for providing irresponsible loans.

Authorities concluded that Santander obtained too little information about the financial position of customers in four out of the ten files, leaving debtors vulnerable. I Photo: Banco Santander

The penalty, issued on July 9 this year but disclosed on Wednesday, is based on a study of 10 files from 2021, Eleanor Butler reported for Euronews.

Authorities concluded that Santander obtained too little information about the financial position of customers in four out of the ten files, leaving debtors vulnerable. The AFM added that irresponsible credit was provided in half of the cases.

"This is serious because Santander Consumer Finance (SCF) structurally failed to comply with one of its most important obligations towards its customers," said Jos Heuvelman, director of the watchdog organization.

"After all, a loan that is too high can leave consumers with too little money left to pay their fixed living expenses," he added.

Credit providers are required to collect information on the income of their customers, as well as certain fixed expenses, to assess the risk level of the loan.

"When credit providers do not comply with the rules, not only are the interests of consumers harmed, but the level playing field in the credit market can also be disrupted," AFM explained.