09/20/2026
Credit Acceptance Corp., one of the largest subprime auto lenders in the U.S., agreed to pay $710 million and overhaul its lending practices nationwide to settle claims by 40 states and Washington, D.C., that it trapped low-income borrowers in auto loans they could never afford.
The settlement announced Sept. 17 also resolves claims that Credit Acceptance helped car dealers push consumers to buy add-on products, such as vehicle service contracts, and insurance they never knew they were paying for.
Many borrowers ended up defaulting or having their vehicles repossessed, the states said.
Credit Acceptance will forgive $634 million of debt owed by more than 55,000 borrowers who took out loans between November 2015 and November 2025, pay $60 million in restitution to thousands of other borrowers, and pay a $15.5 million penalty, New York Attorney General Letitia James said.
Read more: https://www.autonews.com/retail/finance-insurance/an-credit-acceptance-settlement-0918/
