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Credit Acceptance deal erases millions in Pennsylvania debt. HARRISBURG, PA - Pennsylvania consumers are expected to receive more than $20 million in debt relief and restitution under a multistate settlement with Credit Acceptance Corp. that resolves allegations the auto lender made unaffordable loans and added unwanted products to financing contracts. The agreement takes effect Nov. 2 as part of $694 million in nationwide consumer relief. Qualifying Pennsylvania borrowers are estimated to receive more than $17 million in debt relief and about $2.97 million in restitution, according to Attorney General Dave Sunday's office. Pennsylvania is also expected to receive $469,623 for future consumer-protection and education efforts. The settlement was reached by Pennsylvania and attorneys general representing 40 other states and jurisdictions. It resolves allegations against Credit Acceptance, one of the nation's largest auto finance companies, involving loans made to borrowers with limited or impaired credit histories. Discover more Switch Broadband Providers Access Premium News Explore Tactical Gear The states alleged Credit Acceptance originated loans it knew or should have known consumers could not afford based on its own internal evaluations. Some borrowers subsequently defaulted and had their vehicles repossessed and sold at auction, according to the Pennsylvania Attorney General's Office. "This auto loan company did not do their due diligence to ensure the loans they were providing were appropriate for consumers," Sunday said. He also alleged that unnecessary add-on products increased borrowers' financial burdens. Nationwide, the agreement provides $60 million in cash restitution for consumers who received certain higher-risk loans. Credit Acceptance will also provide $388 million in debt relief by Nov. 2 for qualifying borrowers whose vehicles were repossessed and $246 million for qualifying borrowers whose vehicles were not repossessed, allowing those consumers to retain their vehicles. Those debt-relief provisions apply to certain loans originated between Nov. 1, 2015, and Nov. 30, 2025. Credit Acceptance will make an additional $15 million payment to the participating attorneys general. The agreement also imposes changes on the company's lending practices. For certain qualifying loans originated beginning in December 2025 that fail quickly, Credit Acceptance must provide borrowers with 95% debt relief and cannot pursue collection lawsuits against them. Discover more Claim Your Listing Access Premium News Read Community News That requirement will remain in place for five years beginning Nov. 2, 2026. The settlement also establishes procedures intended to prevent dealers from adding unwanted Vehicle Service Contracts and Guaranteed Asset Protection products to Credit Acceptance financing agreements. Requirements include enhanced disclosures before purchase, post-purchase notices and a process intended to make cancellation easier, along with dealer monitoring. Credit Acceptance must provide borrowers with pre-loan disclosures addressing default risks and vehicle values. For seven years, the company must also cap vehicle prices at 109% of retail book value for certain consumers. The lender must establish procedures designed to prevent dealers from increasing vehicle prices based on a borrower's creditworthiness or charging more than an advertised price. Credit Acceptance will notify customers who qualify for debt relief. A claims administrator will contact consumers eligible for restitution. The settlement's executive committee includes the attorneys general of Maryland, Arkansas, California, Illinois, Minnesota and New Jersey. Pennsylvania joined the agreement with attorneys general from more than 30 other states and the District of Columbia, while New York is separately settling litigation it brought against Credit Acceptance in federal court. Pennsylvania's Department of Banking and Securities identifies motor vehicle finance companies among the non-depository businesses it regulates, while the Attorney General's Office investigates potential unfair and deceptive practices involving the financing of goods and services. Discover more Order Demographic Reports Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources - free for everyone. If you value that, click here to become a patron today.

Attorney General Jay Jones announces $694 million settlement with Credit Acceptance Corporation. Attorney General Jay Jones announced on Sep. 18 that Virginia and 40 other states have reached a $694 million settlement with Credit Acceptance Corporation, one of the nation's largest auto finance companies, over allegations related to subprime car loans. The agreement provides more than $2 million in restitution and over $17 million in debt relief for Virginians impacted by the company's lending practices. Jones said, "Companies that are reckless with consumers' finances will be held to account. For years, CAC took advantage of Virginians through misleading practices. These deceitful efforts have a tremendous negative impact in a moment when Virginians are already facing financial strain. Every Virginian is entitled to a fair, transparent credit market when they need to buy a car." He continued, "I am proud of our team for holding lenders accountable for predatory practices. We are thrilled to be putting money back in the pockets of hardworking Virginians." The settlement includes injunctive terms requiring Credit Acceptance Corporation (CAC) to provide disclosures about loan risks and protections from certain risky loans. It also mandates measures against dealers adding unwanted Vehicle Service Contracts (VSC) and Guaranteed Asset Protection (GAP) products into auto-loan contracts without consumer knowledge or consent. According to the attorneys general involved, CAC originated loans it knew or should have known consumers could not afford, often assigning low proprietary "scores" predicting poor repayment prospects. Many such loans resulted in defaults and vehicle repossessions followed by auction sales. The settlement also resolves allegations that CAC encouraged or failed to prevent unlawful product "packing" by auto dealers due to its dealer compensation methods and oversight. The agreement allocates $60 million nationally for cash restitution - over $2 million directed to Virginia - and requires CAC by Nov. 2, 2026, to provide hundreds of millions more in debt relief: $388 million for consumers whose cars were repossessed and $246 million for those who kept their vehicles despite risky loan terms. An additional payment of nearly $350,000 will go directly to Virginia's Office of the Attorney General. Consumers can contact CAC at (800) 634-1506 or the Consumer Protection Hotline at (804) 786-2042 regarding eligibility or questions about relief under this settlement; information will also be provided directly by CAC and through an appointed administrator overseeing restitution distribution. The Consent Judgment was filed on September 17, with approval pending before Richmond Circuit Court. The Attorney General of Virginia supports civil rights enforcement; offers legal counsel and representation statewide; addresses issues such as human trafficking; serves all residents across the Commonwealth; provides consumer protection resources including identity theft assistance; and is currently led by Miyares as its 48th officeholder, according to the official website.

Oklahoma gets $1.76M from $694M auto loan settlement. OKLAHOMA CITY - Oklahoma and 40 other states have reached a $694 million settlement with Credit Acceptance Corp. over allegations involving risky auto loans and the sale of vehicle service contracts and guaranteed asset protection products. Attorney General Gentner Drummond announced the settlement Sept. 17. Oklahoma will receive $1.76 million. "Thousands of consumers suffered harm from Credit Acceptance Corporation's predatory lending practices," Drummond said. "This settlement holds CAC accountable to the law and forces fundamental changes to the company's business practices." Credit Acceptance, one of the nation's largest auto finance companies serving consumers with limited or impaired credit histories, will provide $60 million in cash restitution and $634 million in debt relief to consumers. The settlement resolves allegations that the company originated loans it knew or should have known consumers could not afford. The states also alleged that Credit Acceptance failed to reasonably prevent dealers from adding vehicle service contracts and guaranteed asset protection products to loan contracts without consumers' knowledge or understanding. For certain risky loans made between Nov. 1, 2015, and Nov. 30, 2025, the company will provide $388 million in debt relief to consumers whose vehicles were repossessed and $246 million to consumers whose vehicles were not repossessed. The latter consumers will be allowed to keep their vehicles. The settlement also requires additional disclosures about loan risks and protections for consumers. It takes effect Nov. 2. Consumers with questions can call 1-800-634-1506. Eligible consumers will be notified by Credit Acceptance or a claims administrator.