Utah among 40 states to settle with auto loan company accused of predatory lending

State attorneys general announced a $694M settlement with Credit Acceptance Corporation (CAC) for alleged consumer protection violations. Other actions include blocking federal database access, preventing SNAP benefit terminations, opposing a CMS rule, and addressing counterfeit drug imports. Settlements were also reached with Payless Used Car Sales in Alaska and JSC Transportation in Massachusetts.

Credit Acceptance Corporation settled with 40 states, including Utah, for $700M over predatory auto loans. 124 Utahns will receive $178K in restitution, plus $1M in debt relief and $527K for those who kept vehicles. The company denies wrongdoing but agreed to new safeguards.

Credit Acceptance Corporation will cancel $634M in auto debt for 55,000+ borrowers under a proposed consent order. The deal resolves a lawsuit by NY AG and CFPB, addressing high interest rates and repossession practices. Eligible loans meet specific criteria, including origination dates, credit scores, and payment-to-income ratios. The order also imposes new lending rules for the company, including price caps and add-on product disclosures.

Credit Acceptance Corporation will pay $694 million to settle claims of predatory lending practices. The settlement includes cash payments and debt forgiveness for borrowers, with $60 million going directly to consumers and $634 million as debt relief. The company must also pay $15 million to states. The settlement resolves allegations that the company approved high-risk loans with a high chance of default, targeting low-income borrowers.

Utah will receive $1.9M from a $694M settlement with Credit Acceptance Corporation, resolving allegations of predatory auto loans. The settlement, involving 40 states, provides cash restitution and debt relief for affected consumers, including 124 Utah residents. The company must change its lending practices to prevent future misconduct.

Credit Acceptance Corporation settled a multistate lawsuit for $694 million, providing cash and debt relief. The subprime lender was accused of issuing loans to borrowers it knew couldn't repay, based on its own risk assessments.