Credit Acceptance said it has reached consent judgments with the New York attorney general and 40 other state attorneys general, ending litigation filed in 2023 and a multistate investigation that began in 2020.
Under the resolution, the company will pay $60 million into 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.
The company said the monetary pieces of the settlement will not require any additional charges beyond amounts it had already accrued and disclosed in its financial statements.
The agreement also requires Credit Acceptance to preserve and supplement its 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 settlement gives the company, its dealer partners and customers “certainty” and said it allows management to focus on serving consumers and executing its long-term strategy.
Credit Acceptance said the resolution does not fundamentally alter its business model and is broadly consistent with its focus on customers and regulatory expectations in the auto finance industry. The market has reacted to these announcements by moving the company's shares -2.05% to a price of $578.29. Check out the company's full 8-K submission here.
