Nearly 5,000 Georgians to Get Relief Under $694M Auto Finance Settlement
The company will forgive $634 million in debt and pay $60 million in restitution after states said it pushed borrowers into unaffordable loans.
- On Thursday, Credit Acceptance Corporation agreed to a $710 million settlement with 40 states and Washington, D.C. to resolve allegations that the company drove thousands of low-income borrowers into predatory auto loans.
- Attorneys general alleged the Michigan-based lender encouraged dealers to engage in unlawful "packing" of unwanted Vehicle Service Contracts and Guaranteed Asset Protection products while ignoring borrowers' inability to repay loans.
- The agreement provides $634 million in debt forgiveness for more than 55,000 borrowers, $60 million in cash restitution, and a $15.5 million penalty, though Credit Acceptance denied wrongdoing in the settlement.
- Starting November 2, 2026, the company must institute lending reforms including "off-ramps" for risky loans, price caps at 109% of retail book value, and enhanced disclosures to prevent future predatory practices.
- The U.S. Consumer Financial Protection Bureau withdrew from a parallel federal lawsuit in April 2025, describing the move as "consistent with principles of justice and fairness," concluding the broader legal action.
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30 Articles
Arkansas Secures $660K in Multistate Settlement Over Risky Auto Loans and Consumer Debt Relief
Arkansas will receive $660,000 in civil penalties as part of a $694 million multistate settlement with Credit Acceptance Corporation, while qualifying Arkansas borrowers could separately be eligible for consumer restitution or debt relief under the agreement. Attorney General Tim Griffin announced Thursday that Arkansas joined [...]
The Daily Herald
North Carolinians’ share of $694M settlement about $9.5M in relief, restitution
(The Center Square) – Nearly $2 million of a $694 million settlement with Credit Acceptance Corporation will go to about 1,300 North Carolina consumers, an estimated average of $1,345.
NC to receive about $7.5M in debt relief, nearly $2M in restitution in auto loan settlement: NCAG
North Carolina is among the recipients of a settlement between a bipartisan coalition of attorneys general and an auto finance company accused of predatory lending practices, state officials said Thursday.
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