Credit Acceptance said it has reached consent judgments with the New York attorney general and 40 other state attorneys general, ending a 2023 lawsuit and a multistate investigation that began in 2020.
Under the resolution, the company will pay $60 million to a consumer relief fund and $15.5 million to the participating attorneys general for their investigation. It will also provide debt relief by waiving all outstanding balances for certain customers.
Credit Acceptance said the monetary terms will not require any additional charges beyond amounts it had already accrued and disclosed in its financial statements.
The company also agreed to preserve and supplement existing controls, including consumer-facing disclosures on vehicle pricing and ancillary products, affordability-related protections, and dealer oversight requirements.
Chief Executive Vinayak Hegde said the deal gives the company, dealer partners and customers “certainty,” and said it allows management to keep its focus on helping consumers with limited financing options obtain transportation.
The settlement does not require material changes to the company’s operations, according to the release. Following these announcements, the company's shares moved -2.05%, and are now trading at a price of $578.29. For more information, read the company's full 8-K submission here.
