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 debt relief efforts in recent years. Regulators have accused the firm of deceptive lending practices that disproportionately targeted vulnerable borrowers. The settlement underscores growing scrutiny over predatory financial practices in the auto loan industry.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
