Spanish lender to pay €300m to victims of debt-driven scams

A Spanish lender has agreed to pay the victims of a debt-fueled scam in which customers were promised free car insurance and other perks if they paid in full.

The agreement signed on Tuesday means Santander will pay €3.8m to some of the more than 10,000 victims of the scheme.

The victims in the scam were promised a $1,500 bonus if they completed a credit history check, or were paid in advance.

In return, the lenders promised to extend credit to other customers and to help them refinance their mortgages.

The scam was first uncovered in Spain last year.

The banks that were involved in the scheme, including Santander, received billions of euros in bailout funds.

They were later bailed out by the European Union, which agreed in February to provide €12.5bn ($17.7bn) in funding to the banks and other lenders.

Santander said it was the first time it had ever made a payment to victims, but would not give details.

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