Credit Acceptance announced consent judgments with New York and other US attorneys-general in a multistate settlement that New York's attorney-general valued at $700 million. The package includes more than $630 million in debt relief, a $60 million consumer restitution fund and $15.5 million for participating authorities. More than 55,000 borrowers are due to have eligible balances eliminated. The Michigan-based lender entered the resolution without admitting fault or wrongdoing.
New York's attorney-general and the Consumer Financial Protection Bureau sued the lender in January 2023, alleging that borrowers were placed into unaffordable loans containing costly add-on products. The CFPB withdrew from the case in 2025, while New York continued the litigation. Credit Acceptance said the settlement also resolves a multistate investigation that began in 2020. The company said the monetary terms would not require charges beyond amounts previously accrued and disclosed.
DEBT RELIEF AND RESTITUTION
The debt-relief component will eliminate outstanding balances for more than 55,000 eligible consumers nationwide. Participating authorities will administer the $60 million restitution fund for additional borrowers who lost vehicles after repossession. New York said about 2,500 New Yorkers are among those receiving debt relief, and that the state will receive approximately $34 million in debt relief, restitution and penalty payments.
The judgments also impose protections for certain at-risk borrowers who default within specified 12- or 18-month periods and have their vehicles repossessed and sold. Credit Acceptance must forgive 95% of the remaining debt for those qualifying borrowers and cannot sue to collect or resell that debt. The company must also contact consumers outside the dealer showroom to inform them of any add-on products purchased and offer a way to cancel them while keeping their vehicles.
COMPLIANCE TERMS AND IMPLEMENTATION
Credit Acceptance said the agreed controls cover affordability protections, dealer oversight and consumer-facing disclosures. It said the requirements do not fundamentally alter its business model. The lender also said the settlement ends the 2023 litigation and the investigation begun in 2020.
Implementation will now depend on the consent judgments being entered where required and the participating authorities administering the restitution fund and debt waivers. The financial effect will also be reflected against amounts that Credit Acceptance said it had already accrued and disclosed.