A major subprime auto lender has agreed to erase outstanding debts for tens of thousands of borrowers while paying tens of millions in restitution and penalties as part of a settlement. The resolution follows allegations of predatory lending practices that left vulnerable customers trapped in cycles of unaffordable loans. Affected borrowers will see their remaining balances wiped clean, while the company will also cover fines and compensation for affected consumers. The deal marks one of the largest debt relief efforts in the auto finance industry to date.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
