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More than 1,000 Massachusetts borrowers who had auto loans with Santander Consumer USA could receive debt relief and other payments following a settlement the company reached with the Massachusetts attorney general.

Santander Consumer USA will pay $5.56 million to resolve allegations that it did not provide consumers with sufficient disclosures about its auto loan debt collection practices, the office of Attorney General Maura Healey said last week.

The attorney general’s office alleges that Santander Consumer USA did not give certain consumers sufficient information about the methods to calculate any deficiencies left on their auto loans after their cars were repossessed. This information can be helpful when determining how best to respond to a lender’s collection efforts, the attorney general’s office said in a statement.

“Consumers struggling with auto loan debt should get clear information from lenders to help them navigate repossession and other collection actions,” Healey said in the statement. “This settlement, which combines cash payments with debt relief and credit repair, will help many subprime borrowers in need.”

Over 1,000 borrowers in Massachusetts could be eligible for relief based on an assurance of discontinuance that was filed in Massachusetts Superior Court last week. Borrowers eligible for relief under this settlement will be contacted by the attorney general’s office, the statement said. An independent trustee will oversee payments from the trust, according to the court filing.

The attorney general’s office said the settlement was part of ongoing work related to collection practices of subprime auto lenders. In September 2021, Healey settled with Credit Acceptance Corp. for over $27 million in cash as well as debt forgiveness and credit repair for affected consumers in a broad case that included claims that the company did not provide sufficient information to borrowers after auto repossession.