A major subprime auto lender has agreed to cancel outstanding debts for tens of thousands of borrowers as part of a sweeping settlement. The company will also pay tens of millions in restitution and penalties, marking one of the largest consumer financial settlements in recent years. The resolution follows allegations of predatory lending practices that disproportionately targeted vulnerable borrowers. Details on eligibility and the full scope of the relief remain under review by regulators.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
