On September 17, 2026, Credit Acceptance Corporation entered into consent judgments with the Office of the New York Attorney General and the attorneys general of 40 other states, along with the District of Columbia. The agreements resolve a lawsuit filed in January 2023 and a multi-state investigation initiated in 2020. The company stated it entered into these agreements without admitting any wrongdoing or liability.
Under the terms of the settlements, Credit Acceptance will pay an aggregate of $15.5 million to the participating attorneys general and the District of Columbia to cover the costs of their investigations. Additionally, the company will transfer $60 million to a trust account administered by a committee of the attorneys general. This fund is intended for remediating alleged consumer losses.
The settlement also includes a provision for debt relief. The company will waive the outstanding balances of certain customers with open accounts as of December 1, 2025. The total estimated value of this debt relief is $634 million. Credit Acceptance noted that these payments and debt relief will not require the company to record charges beyond amounts it had already accrued and disclosed in its financial statements.
The agreements impose several operational requirements on the company for a period of five years. These include implementing changes to debt-collection practices for loans originated after December 1, 2025, and enhancing consumer-facing disclosures regarding vehicle financing and pricing. The company is also required to maintain policies related to debt relief, affordability protections, and dealer oversight for a seven-year period. Credit Acceptance stated that these requirements are broadly consistent with regulatory expectations in the automotive finance industry and do not fundamentally alter its business model.
The company must provide annual compliance reports to a monitoring committee for five years and maintain compliance records for at least three years. Credit Acceptance emphasized that the resolution provides greater clarity regarding regulatory expectations and allows the management team to focus on its long-term strategy.
