Were You a Victim of a Credit Acceptance Auto Loan? Relief May Be in Sight

Lawsuit alleges hidden loan costs, aggressive debt collection

The Consumer Financial Protection Bureau (CFPB) and the New York Attorney General’s Office today announced the filing of a lawsuit against auto lender Credit Acceptance for the company’s practices that allegedly created financial distress, car repossession, and debt collection actions for borrowers. The complaint seeks relief for impacted consumers as well as a civil money penalty to discourage Credit Acceptance from engaging in these practices in the future.

“Credit Acceptance obscured the true cost of its loans to car buyers, leading to severe financial distress for borrowers and subjecting them to aggressive debt collection tactics on loans its own systems predicted that borrowers can’t afford to repay,” said CFPB Director Rohit Chopra. “The CFPB and the New York Attorney General seek to halt Credit Acceptance’s illegal practices and make consumers whole.”

According to New York’s Attorney General, the practices used by Credit Acceptance led to financial ruin for a significant number of borrowers from New York.

“CAC claimed to help low-income New Yorkers purchase cars, but instead, drove them straight into debt,” said New York Attorney…