Consumer complaint received 2021-05-27
Company: SANTANDER BANK, NATIONAL ASSOCIATION
State: MA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Getting the loan

Complaint:
Dear CFPBXX/XX/XXXXXXXX21 My name is XXXX XXXX and I have a small consulting business ( XXXX XXXX ) and I had applied for a 1st draw PPP loan through Santander Bank which I received, and it was subsequently forgiven On XX/XX/XXXX, Santander sent me an invitation to apply for a 2nd draw PP loan which I did on XX/XX/XXXX. For about {$1400.00}. On XX/XX/XXXX Santander had sent me an email stating that the application was received and on XX/XX/XXXX I received an email from Santander stating it was under review under review. 
Also, on XX/XX/XXXX Santander sent me an email stating that the SBA had changed some of the rules for the calculation amount of loan ( specifically for XX/XX/XXXX ) that may benefit me as to the amount of the loan I could receive. 
This email is copied below including header with date : On Wednesday, XX/XX/2021, XXXXXX/XX/XXXX SBA PPP Manual Loan XXXX wrote : Important! When replying to this email, do not change the email subject line or remove the reference number at the bottom of the email. 

Dear Customer, We have been notified by the SBA of upcoming changes to the Paycheck Protection Program that may benefit you as a Sole Proprietor, Independent Contractor, or Self-Employed business. The SBA is proposing changes to the calculation method for your Average Monthly Payroll and Loan Amount that may allow you to increase your Loan Amount. However, the SBA has not finalized their guidance on these changes and is not expected to do so until the beginning of XXXX. 

If you would like us to hold your application until these changes are finalized, please let us know within two ( 2 ) business days from this communication, and we will reach back out to you once the guidance is finalized. If we do not hear from you within two ( 2 ) business days, we will continue to process your application. 

Thank you. 

Notice : The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age ( provided the applicant has the capacity to enter into a binding contract ) ; because all or part of the applicant 's income derives from any public assistance program ; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is the Consumer Financial Protection Bureau, XXXX XXXX XXXX XXXX, XXXX, DC XXXX. 

Santander Bank, XXXX XXXX XXXX, XXXX, MA XXXX Equal Housing Lender. Santander Bank, N.A. is a Member FDIC. 2021 Santander Bank, N.A. All rights reserved. Santander, Santander Bank and the Flame Logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their respective owners. 

As you can see from the highlighted part that if you do not respond to this email, your loan application would have processed as normal. I did not respond to this email. I assumed as stated my application would be processed as originally filled out In the next few weeks I had not heard from Santander except for another email on XX/XX/XXXX stating my application was still under review. Late in XXXX, I then contacted the business banking manager at the XXXX Santander branch. He made some inquires and looked online said that they had the PPP loan application and noting looked out of the ordinary. I went back one other time and was told a similar story. 
Finally, on XX/XX/XXXX, I received notice from Santander that the PPP money was exhausted. I still had not heard from Santander if my loan had been approved or denied. My loan application was filed with a week of a request to apply! 
To try to get to the bottom of what had happened, I then contacted the Business manager again in mid-May at the XXXX Branch and sent him the email trail I have attached to this complaint. 1-2 weeks after that on around XXXX, he responded that his back office informed him my PPP loan was in limbo because I had not responded to the email about the SBA rules change affecting my loan amount. Even though it says if they dont hear from me within 24 hours they will process my loan as is! 
I find this argument specious and just plain wrong. I cant argue with stupid here. I dont know how many other people who ignored that email were affected or Why they figured out this is the reason only after the PPP money ran out. I had been asking for weeks if there were any issues. If Santander had just told me, I would have responded NO even though it specified say I dont have to. Cleary, they have messed up and I and others must now pay for their mistake. There was no reason for this to happen and my PPP load would have been approved ( as my first was ) if they could have followed their own rules. 
So, my goal is to have Santander admit this mistake and make it right! They keep telling me that even if they could correct it there is no more PPP money. I am aware of that, but I am sure banks like these are self-insured for these mis-steps. 

Regards, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MA XXXX Below I am including the following email trail 1. The email application for the 2nd draw PPP loan send on XX/XX/2021. 
2. The email verifying that I sent the completed application XX/XX/XXXX XXXX. Proof from XX/XX/XXXX that the PPP loan was digitally signed, and date stamped on XX/XX/XXXX XXXX. The email from Santander stating that they have received it and it is under review XX/XX/XXXX 5. The email sent on XX/XX/XXXX about the rule changes and that if I ignore the email in 2 days, my application will be processed as is. 
6. Email on XX/XX/XXXX stating how to do the new loan calculation if you are gogin that route- I was not!

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation