Sue Credit Acceptance Corporation
Credit Acceptance Corporation is a subprime auto lender known for extremely high interest rates and aggressive collection practices. The company primarily works through buy-here-pay-here dealers and has faced significant legal action from federal and state regulators.
Common Credit Acceptance Corporation Violations
Typical Settlement Range vs Credit Acceptance Corporation
$5,000 - $45,000+
About Credit Acceptance Corporation
Credit Acceptance Corporation, based in Southfield, Michigan, finances auto loans through a nationwide network of dealers, primarily targeting consumers with poor credit. The company has faced intense regulatory scrutiny for its high interest rates (often exceeding 20%), aggressive collection practices, and dealer relationships that may incentivize predatory lending. The CFPB and multiple state attorneys general have taken action against Credit Acceptance for practices that harm vulnerable consumers. If you have a Credit Acceptance loan and your vehicle was repossessed, you may have significant legal claims.
Detailed Violation Analysis
Excessive Interest Rates & Hidden Fees
Credit Acceptance routinely charges interest rates between 20% and 29%, and in some cases, the total amount paid over the life of the loan exceeds twice the original vehicle price. Many consumers are not fully informed of the true cost of the loan at origination.
Aggressive Post-Repossession Collection
After repossessing and selling vehicles, Credit Acceptance aggressively pursues deficiency balances through calls, letters, and lawsuits. Many consumers report continued collection efforts even after the statute of limitations has expired.
Credit Reporting Violations
Credit Acceptance has been accused of reporting inaccurate information to credit bureaus, failing to note accounts as disputed, and continuing to report debts that were discharged in bankruptcy or barred by the statute of limitations.
Dealer Kickback Arrangements
Credit Acceptance's dealer-partner model has been criticized for incentivizing dealers to steer consumers into high-interest loans regardless of whether better options are available, raising concerns about fair lending violations.
Regulatory Actions & Settlements
CFPB order directing Credit Acceptance to pay redress to harmed borrowers for deceptive lending and collection practices.
Settlement with the Massachusetts Attorney General over predatory subprime auto lending practices.
Mississippi Attorney General settlement over deceptive auto lending and collection practices.
* Regulatory settlements are separate from individual consumer claims. Your case value depends on your specific circumstances.
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