Santander to settle U.S. consumer watchdog auto-finance claims - sources

WASHINGTON (Reuters) - European lender Santander has agreed to settle claims by a U.S. consumer watchdog that it misled drivers about the costs of loans and the coverage of related insurance policies, said three people with direct knowledge of the settlement. Santander Consumer USA Holdings Inc , an affiliate of the Spanish banking group, allowed borrowers to make interest-only monthly payments without explaining that doing so would increase the total cost of the loan, said the people familiar..