Credit Acceptance Corporation said it has entered or will enter into consent judgments with the Office of the New York Attorney General and 40 other attorneys general, resolving 2023 litigation filed by New York and a multistate investigation begun in 2020 without any admission of fault or wrongdoing. Under the consent judgments, the company will pay $60 million into a consumer relief fund administered by the participating attorneys general, pay $15.5 million to those attorneys general for their investigation, and provide debt relief by waiving all outstanding balances for certain customers. Credit Acceptance said the monetary components will not require it to record additional charges beyond amounts previously accrued and disclosed in its financial statements. The company also agreed to preserve and supplement existing controls through consumer-facing disclosures on vehicle pricing and ancillary products, affordability-related protections, and dealer oversight requirements, which it said are broadly consistent with its customer focus and do not fundamentally alter its business model. Chief Executive Officer Vinayak Hegde said the resolution provides certainty for the business, its dealer partners and the customers it serves, and allows management to keep its full attention on helping consumers with limited financing options obtain reliable transportation.
Credit Acceptance CorporationResolves multistate probe and 2023 NY litigation via consent judgments with no admission of wrongdoing, providing legal certainty without additional charges beyond amounts already accrued.
