Credit Acceptance to Erase $634M in Debt for 55,000 Borrowers

Attorneys general from multiple states, including North Carolina's Jeff Jackson, allege Credit Acceptance Corporation (CAC) targeted low-income borrowers with unaffordable loans and aggressive debt-collection tactics. The company settled for $700 million, providing restitution and debt relief to affected drivers. CAC denies wrongdoing. (CAC)

Credit Acceptance Corporation (CAC) settled a lawsuit with 40 states and D.C., agreeing to provide $694M in relief to 55,000 consumers. The settlement includes $630M in debt relief, $60M in restitution, and $15.5M to states. CAC was accused of predatory lending practices, including high interest rates and misstated loan terms. The settlement also mandates consumer-friendly reforms for CAC over the next five years.

Kentucky consumers will receive $10 million in debt relief and restitution from a proposed $694 million nationwide settlement with Credit Acceptance Corporation, according to Attorney General Russell Coleman. The settlement alleges predatory lending practices and includes reforms to the company's lending practices, such as disclosing loan risks and providing protections for high-risk loans. CAC must also cap vehicle prices and prevent unlawful add-ons to loans.

The state of Hawaii settled with Credit Acceptance Corp. (CAC) over allegations of predatory auto loans. If approved, eligible consumers will receive $830,000 in debt forgiveness and $115,000 in cash restitution. The settlement includes reforms to CAC's lending practices, such as disclosing loan risks and preventing unwanted add-ons. This is part of a nationwide settlement involving 40 other states, with up to $60M in cash restitution and $634M in debt forgiveness.

Credit Acceptance Corporation (CAC) agreed to a $694 million settlement with 40 states and D.C. for predatory lending practices. The settlement includes $630 million in debt relief, $60 million in restitution, and $15.5 million for state reimbursements. CAC will also implement consumer-friendly reforms for five years. The lawsuit alleged CAC misled consumers, offered unaffordable loans, and profited from repossessions.

Kentucky consumers will receive $10 million in debt relief and restitution from a $694 million settlement with Credit Acceptance Corporation, announced by Attorney General Russell Coleman. The settlement alleges predatory lending practices and requires CAC to reform its lending practices, including disclosing loan risks and providing protections for high-risk loans. The agreement is pending court approval.