Utah joins $694 million multistate settlement with Auto Lender Credit Acceptance Corporation

SALT LAKE CITY— On Sunday, Utah joined 39 other attorneys general in a settlement with Credit Acceptance Corporation (CAC), a national auto-financing company. The agreement delivers $694 million in cash restitution and canceled debt to consumers nationwide on their car loans. Working alongside the Utah Division of Consumer Protection, the Office of the Utah Attorney General secured nearly $1.9 million in relief for Utah consumers, including $122,092 paid directly to the state. 

CAC is one of the nation’s largest auto-loan companies, extending credit to borrowers with low or limited credit histories. Following an investigation, the states allege that CAC issued loans it knew or should have known consumers could not afford, including some the company expected borrowers would fail to repay even the principal. CAC assigned each loan a score reflecting how much it expected to collect, and many low-scoring borrowers defaulted and had their vehicles repossessed. 

“No company should be able to profit by setting its own customers up to fail. This settlement holds Credit Acceptance accountable and makes clear that lenders who cut corners will answer for it,” said Utah Attorney General Derek Brown.

In the settlement, the 124 affected Utah consumers will receive a share of $177,935 in cash restitution. They will also benefit from $1,083,782 in full debt relief for those whose vehicles were repossessed and $526,810 for consumers who retained their vehicles.  

“Exploiting vulnerable Utah consumers through high-pressure sales and deception will not be tolerated,” said Katherine Hass, Director of the Utah Division of Consumer Protection. “We remain committed to holding bad actors accountable and delivering justice directly to affected Utah households.”