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Credit Acceptance Corporation entered into consent judgments with the attorneys general of 40 states and the District…
CACCCredit Acceptance Corp
Credit Acceptance Corporation entered into consent judgments with the attorneys general of 40 states and the District of Columbia to resolve litigation initiated in 2023 and a multi-state investigation dating back to 2020. The settlement requires the company to pay $15.5 million to participating attorneys general, contribute $60 million to a consumer relief trust fund, and waive outstanding balances for certain customers totaling an estimated $634 million in debt relief. These payments are covered by amounts previously accrued, requiring no additional charges to financial statements. The agreement mandates five years of compliance with enhanced debt-collection practices and seven years of improved consumer disclosures regarding vehicle pricing and affordability protections. Credit Acceptance Corporation operates in the automotive finance industry, providing subprime vehicle financing solutions through a network of automobile dealers.