A major subprime auto lender has agreed to erase 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 relief packages in recent years. Critics have long accused the firm of predatory lending practices, while regulators cite concerns over aggressive debt collection tactics. The settlement follows years of legal scrutiny and could set a precedent for accountability in the high-risk lending industry.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
