Attorney General Mayes Joins $694 Million Multistate Settlement with Subprime Auto Lender Credit Acceptance Corporation

PHOENIX – Attorney General Mayes announced that Arizona, along with the attorneys general for 40 other states, has entered into a settlement with Credit Acceptance Corporation (CAC) providing $694 million in cash and debt relief to consumers in connection with their car loans. CAC is one of the nation’s largest auto finance companies, providing car loans to consumers with limited or impaired credit histories. The settlement also includes injunctive terms that, among other things, require CAC to provide consumers disclosures about loan risks, give consumers protections from bad outcomes from certain risky CAC loans, and help guard consumers from dealers “packing” CAC auto-loan contracts with unwanted Vehicle Service Contracts (VSC) and Guaranteed Asset Protection (GAP) products. “My office will always fight for Arizonans who are harmed by unfair lending practices,” said Attorney General Mayes. “This bipartisan settlement will deliver real relief to Arizonans who were misled by Credit Acceptance Corp.” The multistate investigation resolves allegations that CAC originated loans that the company knew or should have known consumers could not afford. CAC gives a proprietary “score” to...