A major subprime auto lender has agreed to a sweeping settlement that will eliminate outstanding debt for tens of thousands of borrowers while also imposing a $75.5 million penalty. The resolution follows allegations of predatory lending practices, including deceptive marketing and unfair collection tactics that disproportionately targeted vulnerable consumers. Borrowers affected by the company’s policies will see their remaining balances wiped clean, while regulators will collect restitution and fines as part of the agreement. The settlement underscores growing scrutiny over aggressive lending in the subprime automotive sector.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
