U.S. car sales have dropped 3 percent, making it sixteen months in a row of lower year-by-year sales. Additionally, vehicle sales have fallen to their lowest point since 2014.

While this is occurring, risky car loans and fraud are on the rise. The largest auto loan provider, Santander, is being investigated in 30 states due to fraudulent lending practices. According to Forbes, “A FICO score below 640 is deemed subprime. At the end of the first quarter, 22.3% of Santander’s retail installment contracts (RICs) showed credit scores under 540. Only 13.8% of borrowers had scores over 640. Unsurprisingly, 12.8% of these loans were delinquent by the end of the first quarter, handing Santander a net loss of $72 million for the quarter—and further losses are expected.”

According to Forbes, “A FICO score below 640 is deemed subprime. At the end of the first quarter, 22.3% of Santander’s retail installment contracts (RICs) showed credit scores under 540. Only 13.8% of borrowers had scores over 640. Unsurprisingly, 12.8% of these loans were delinquent by the end of the first quarter, handing Santander a net loss of $72 million for the quarter—and further losses are expected.”

Image via Credit.com.