New Trail Blazers Owner Faces Scrutiny Over 'Predatory' Lending Practices

Oregon poised to pour hundreds of millions into Blazers arena as billionaire Tom Dundon's past business tactics resurface

Mar. 25, 2026 at 9:45pm

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Billionaire Tom Dundon, the incoming owner of the Portland Trail Blazers, is facing fresh scrutiny over his role in alleged predatory lending practices at a subprime auto lender he previously led. As Oregon prepares to invest $365 million in public funds to renovate the Blazers' arena, critics argue Dundon's regulatory history underscores the need for tighter taxpayer protections.

Why it matters

The revelations about Dundon's past business practices raise concerns about the public financing deal for the Blazers' arena renovations, as Oregon and Portland leaders work to keep the franchise in the city. Taxpayer advocates argue the public should have more safeguards given Dundon's regulatory history, while team officials warn that losing the Blazers would be devastating for the city's reputation.

The details

Internal emails show that when Dundon was CEO of Santander Consumer USA in 2013, he pushed to waive proof-of-income requirements for car buyers and raise pricing to offset the extra risk, despite warnings from the company's compliance chief. Oregon and other states later reached a $550 million settlement with Santander over what regulators labeled "predatory and harmful" lending practices, where many customers took out loans under the "false pretense" that they would end up owning the car.

  • In 2013, Dundon was CEO of Santander Consumer USA.
  • In 2020, Oregon and other states reached a $550 million settlement with Santander over predatory lending practices.
  • In 2023, Dundon promised an $800 million investment linked to arena renovations for the NHL's Carolina Hurricanes, another team he owns.
  • In 2026, Dundon's purchase of the Portland Trail Blazers is expected to close on March 31.

The players

Tom Dundon

A billionaire who is the incoming owner of the Portland Trail Blazers and previously served as CEO of subprime auto lender Santander Consumer USA, which faced allegations of predatory lending practices.

Dan Rayfield

The Oregon Attorney General, who stated that proof-of-income requirements exist to protect borrowers from being sold loans they cannot afford.

John Van Alst

A senior attorney at the National Consumer Law Center, who said Portland's leaders have more resources to make good choices than the customers who got "tangled up in really bad subprime auto financing."

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What they’re saying

“Proof of income requirements exist for a reason—they protect borrowers from being sold loans they cannot afford. When those guardrails get waived, dealerships win in the short term, and consumers lose.”

— Dan Rayfield, Oregon Attorney General

“They have more resources to make good choices, hopefully, than a lot of folks do who get themselves tangled up in really bad subprime auto financing.”

— John Van Alst, Senior Attorney, National Consumer Law Center

What’s next

The judge overseeing the sale of the Portland Trail Blazers is expected to rule on whether to approve Dundon's purchase of the team on March 31, 2026.

The takeaway

This case highlights the need for greater scrutiny and tighter taxpayer protections when public funds are used to support private sports franchises, especially when the incoming owner has a history of alleged predatory business practices that have harmed vulnerable consumers.