A major subprime auto lender has agreed to wipe out 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 deceptive lending practices that left vulnerable customers trapped in high-interest loans. Consumers affected by the company’s policies may now see their balances discharged, though eligibility details remain under review. The settlement also includes financial penalties aimed at compensating those harmed by the lender’s conduct.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
