Credit Acceptance Reaches Over $700M Settlement With States
Credit Acceptance Corp (CACC) has reached or will reach consent agreements with attorneys general from New York and 40 other states, totaling over $700 million. The settlement addresses allegations that the company engaged in deceptive practices related to auto loans by charging consumers excessive fees for add-ons like gap insurance and extended warranties. The agreement is part of a broader regulatory crackdown on predatory lending tactics within the automotive finance sector. Credit Acceptance will also implement changes to its business practices, including discontinuing certain fee-based services that were at issue in the investigation. This settlement could impact investor sentiment toward CACC due to potential reputational damage and financial costs associated with compliance adjustments.
Tickers: $CACC
Topics: auto lending consumer protection legal