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 finance enforcement actions in recent years. The resolution follows allegations of predatory lending practices that disproportionately affected vulnerable borrowers. Details on eligibility and how affected individuals can claim relief are expected to be released shortly.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
