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 consumers trapped in high-interest loans. Authorities say the company will also cover financial relief for affected borrowers, marking one of the largest debt forgiveness efforts in the auto finance industry. The settlement underscores growing scrutiny over predatory lending tactics in consumer credit markets.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
