Credit Acceptance settles with 40 states and DC for $15.5 million
The subprime auto lender will also put $60 million into a consumer relief trust and waive about $634 million in customer balances.
Published
Credit Acceptance has entered consent judgments with the attorneys general of 40 states and the District of Columbia, resolving the lawsuit the New York attorney general filed in 2023 and a related multistate investigation.
Under the agreements, dated September 17, 2026 and subject to court approval, the company will pay $15.5 million to the participating attorneys general and contribute $60 million to a consumer relief trust. It will also waive outstanding balances for certain customers with open accounts as of December 1, 2025, a benefit estimated at $634,000,000. Credit Acceptance does not admit wrongdoing. The settlements also impose requirements on the company's debt-collection and disclosure practices that will run for five to seven years.
The case traces back to conduct first raised in 2020 and litigation that began in 2023. The roughly $700 million total lines up with the exposure Credit Acceptance had already flagged as possible, so the settlement closes out uncertainty rather than adding a new financial surprise. The company said no charges beyond amounts already accrued will be required, meaning the practical impact on its business looks limited mainly to the multi-year compliance rules now attached to its collections and disclosure practices.