A major subprime auto lender has agreed to wipe out outstanding debt 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 financial settlements in recent years. The resolution follows allegations of predatory lending practices that disproportionately targeted vulnerable borrowers. Details on how affected individuals will be notified and the specific terms of debt relief remain under review.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
