Credit Acceptance Corp. said Wednesday it has reached consent judgments with the New York attorney general and 40 other state attorneys general, ending a multistate investigation that began in 2020 and litigation filed in 2023.
The settlement calls for Credit Acceptance to 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 through waivers of all outstanding balances for certain customers.
The company said the monetary terms will not require any additional charges beyond amounts it had already accrued and disclosed in its financial statements.
Under the agreement, Credit Acceptance will preserve and supplement its existing controls with consumer-facing disclosures on vehicle pricing and ancillary products, affordability-related protections and dealer oversight requirements.
Chief Executive Vinayak Hegde said the resolution gives the company, its dealer partners and customers “certainty” and allows management to focus on serving consumers and executing its long-term strategy.
The company said the settlement does not fundamentally alter its business model and is broadly consistent with its customer-focused approach.
Credit Acceptance said it has served more than five million customers with limited or no financing alternatives. The market has reacted to these announcements by moving the company's shares 0.12% to a price of $578.97. For more information, read the company's full 8-K submission here.
