D.C. Car Buyers to Get Relief in $694 Million Subprime Auto Loan Settlement

Credit Acceptance Corp. will provide $70.3M in debt relief to eligible Michigan borrowers and $694M nationwide under a multistate settlement. The company, which specializes in subprime auto loans, was accused of predatory lending practices. Credit Acceptance will pay $60M for consumer losses and $15.5M to attorneys general. The settlement does not require the company to admit wrongdoing or modify existing contracts.

Wisconsin and a coalition of states reached a $694M settlement with Credit Acceptance Corporation (CAC), resolving allegations of predatory lending practices. CAC will provide cash restitution and debt relief to consumers, with Wisconsin receiving $218,319 and its consumers getting $959,988 in restitution and over $10M in debt relief. The settlement includes injunctive terms to reform CAC's lending practices, such as better disclosures and protections against risky loans.

Alaska Governor Dunleavy proclaimed 'Alaska Clean Energy Week' for 2026, highlighting the state's energy resources. Construction on the King Cove to Cold Bay road continues after a court denied a halt. Alaska and 40 states settled with Credit Acceptance Corporation for $709.5M over alleged predatory lending. The state also released a draft transportation improvement program and announced a new reservation website for state parks.

Credit Acceptance Corporation agreed to a $694M settlement with 41 states, including D.C., over allegations of approving unaffordable loans. The company will provide $60M in refunds and debt relief nationwide, with over $250K going to D.C. consumers. The settlement also addresses claims of unwanted add-ons to financing agreements. Credit Acceptance must improve loan disclosures and limit vehicle pricing.

Credit Acceptance (CACC) settled a multistate regulatory case, agreeing to pay $15.5M, contribute $60M to a consumer relief fund, and waive $634M in balances. The company will update practices, including debt-collection protocols and consumer disclosures, but states it will not materially change its business model. The settlement resolves a lawsuit and investigation without admitting wrongdoing.

South Carolina and 40 other states reached a $694M settlement with Credit Acceptance Corp. over alleged unaffordable auto loans. The state will receive $1.3M in restitution for 921 consumers and $11.8M in debt relief for 1,292 consumers. Nationwide, CAC will provide $388M in debt relief and $246M in restitution. The settlement includes additional disclosures and oversight requirements for CAC.