A major auto financing company has agreed to wipe out debt for tens of thousands of borrowers as part of a settlement that includes a substantial financial penalty. The resolution follows allegations of deceptive lending practices that disproportionately affected vulnerable consumers. The company will also pay millions in restitution to affected borrowers, marking one of the largest enforcement actions of its kind in the financial services sector. Details on the specific violations and how borrowers can claim relief are expected to be outlined in the coming days.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
