A major subprime auto lender has agreed to wipe out outstanding debts for tens of thousands of borrowers as part of a sweeping settlement with regulators. The company will also pay a combined total of $75.5 million in restitution and penalties, addressing allegations of predatory lending practices that left vulnerable consumers trapped in high-interest loans. The settlement marks one of the largest debt relief efforts in the auto finance industry, offering financial relief to borrowers who faced aggressive collection tactics and deceptive terms. Critics have long accused the firm of exploiting low-income drivers with loans that often led to long-term financial hardship.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
