Credit Acceptance reaches multistate resolution with $75.5 million in payments

Credit Acceptance ($CACC) reached consent judgments with New York and 40 other state attorneys general involving $60 million of consumer relief and $15.5 million for investigative and legal expenses. The arrangement also includes waiving specified customer balances. The company is not admitting wrongdoing, and the cash obligations were previously accrued, so it expects no additional charge from those amounts.

The resolution addresses the New York litigation and a multistate investigation into the company’s auto-finance practices. Commitments cover consumer disclosures, affordability-related practices and dealer oversight. Credit Acceptance said the changes do not fundamentally alter its business model; that is management’s assessment. The $75.5 million combines the disclosed cash components and does not assign a value to the separate balance waivers.

Sources:

• Credit Acceptance — state attorney-general resolution, company release reprint