Attorney General Maura Healey’s office accused Credit Acceptance of loaning thousands of people money the company "knew or should have known" they couldn’t repay and charged them interest fees that rose above the state’s 21% limit.
Credit Acceptance has not admitted liability or guilt as part of the agreement.
(CR) says that over 3,000 consumers from the state are eligible for compensation. Anyone with questions can call the Attorney General’s office at 617-963-2240.
Who is Credit Acceptance Corp.?
Credit Acceptance Corp. finances cars to consumers through over 12,000 car dealerships across the U.S. In 2020, they funded over 300,000 auto loans.
But Credit Acceptance doesn’t offer these loans straight to buyers. Instead, auto dealers set up the financing deals with their customers and then pay Credit Acceptance to fund and manage the loan. CR says most auto financing agreements are conducted this way in America.
This creates the illusion that dealers are responsible for approving loans and luring people into agreements they can’t afford, but in actuality, the attorney general’s lawsuit states that Credit Acceptance controls every aspect of the process, from approval to collection.
In today’s auto market, it often makes more sense to finance a car than to pay for it upfront. But there are other ways to save on car expenses that have nothing to do with your loan agreement.
A key way to save on a car is to buy a lightly used model. New vehicles generally depreciate in value quickly in their first few years on the road, so buying newish will help you avoid that loss. You can also save significant money by shopping around for the best
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"B.A., English Literature, MedAndrew Koole is an insurance writer who specializes in writing automotive news articles. Andrew’s mission is to create informative and instructional content car owners can use to reduce costs, master repair skills, and learn more about the automotive industry. Andrew has published over 600 articles for Jerry on topics ranging from automaker history to car insurance deductibles. Before joining Jerry in 2021, Andrew split his time between freelance writing in the entertainment and travel industries and creative writing in poetry and fiction. His writing is featured on a variety of arts and travel websites, including his own Ponytail Press.