A major subprime auto lender has reached a sweeping settlement with nearly all U.S. states to resolve allegations of predatory lending practices. The agreement requires the company to pay a substantial financial penalty and implement sweeping reforms across its operations nationwide. Regulators accused the lender of targeting vulnerable borrowers with high-interest loans and deceptive terms. The settlement marks one of the largest enforcement actions against a subprime auto finance company in recent history.
Credit Acceptance Corp., one of the largest subprime auto lenders in the U.S., agreed to pay $710 million and overhaul its lending practices nationwide to settle claims by 40 states and Washington, ...
