"Billionaire Trail Blazers Owner Built Empire on Toxic Subprime Loans"

Tom Dundon, the newly appointed owner of the Portland Trail Blazers, has been accused of building his fortune on dubious subprime loans that targeted vulnerable borrowers in Oregon. According to court documents, Santander Consumer USA, a company co-founded by Dundon, allegedly preyed on over 265,000 people nationwide with high-interest car loans they couldn't afford. The state of Oregon sued Santander Consumer USA in 2020 for its alleged predatory lending practices, which included charging exorbitant interest rates and fees to borrowers who were already struggling financially. The lawsuit claimed that the company's tactics were designed to maximize profits at the expense of vulnerable consumers. Dundon's involvement with Santander Consumer USA dates back to the early 2000s, when he co-founded the company with a group of investors. At the time, Dundon was a successful businessman with a background in finance and real estate. However, his business dealings have come under scrutiny in recent years as concerns about predatory lending practices have grown. According to Tony Schick, an investigative reporter for Oregon Public Broadcasting, "Tom Dundon's history with Santander Consumer USA raises serious questions about the kind of business practices he may bring to the Portland Trail Blazers and the city's support of the proposed new arena." Schick notes that Dundon's company was accused of targeting low-income borrowers who were already struggling to make ends meet. The lawsuit against Santander Consumer USA was settled in 2020, with the company agreeing to pay $10 million in fines and restitution to affected borrowers. However, critics argue that the settlement did not go far enough to address the underlying issues with predatory lending practices. As the city of Portland considers supporting the proposed new arena for the Trail Blazers, concerns about Dundon's business history are growing. "We need to be careful about who we're doing business with," said a local community leader, who wished to remain anonymous. "If Tom Dundon's company was accused of predatory lending practices in Oregon, that raises serious questions about his integrity and commitment to the community." The proposed new arena for the Trail Blazers is expected to cost over $1 billion and will be funded through a combination of public and private financing. However, with concerns about Dundon's business history growing, it remains to be seen whether the city will continue to support the project. In response to the allegations against his company, Dundon has maintained that Santander Consumer USA was simply trying to provide financial services to underserved communities. However, critics argue that the company's tactics were designed to exploit vulnerable borrowers rather than help them. As the controversy surrounding Tom Dundon and the Portland Trail Blazers continues to unfold, one thing is clear: the city needs to carefully consider its support for the proposed new arena and the business practices of its owner. This story was compiled from reports by ProPublica and ProPublica.