• Sun. Dec 3rd, 2023

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True cost of Credit Acceptance Corp. loans ‘obscured,’ regulators say

Southfield-based Credit Acceptance Corp., which made its mark offering auto loans to those who have bad credit and might not qualify for an auto loan otherwise, is accused by regulators of making predatory deals that set financially vulnerable buyers up to fail.

The auto loans for the used cars carry “exorbitant interest rates, are loaded with expensive add-on products, and saddle borrowers with debts” that even the lender believes that borrowers cannot afford to repay in full, according to a complaint filed Wednesday.

New York Attorney General Letitia James and the Consumer Financial Protection Bureau on Wednesday jointly sued Credit Acceptance Corporation for deceiving thousands of low-income New Yorkers into high-interest car loans.

Michigan is not mentioned in the complaint. But the Michigan Department of Attorney General is participating in a multistate investigation, according to a spokesperson late Wednesday.


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