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 tens of millions in restitution and penalties, marking one of the largest consumer financial enforcement actions in recent years. Critics have long accused the firm of predatory lending practices, particularly targeting vulnerable borrowers with high-interest loans. The settlement underscores growing scrutiny over aggressive debt collection tactics in the auto finance industry.
Credit Acceptance will forgive debt for over 55,000 borrowers and pay $75.5 million combined in restitution and penalties under the settlement.
