Auto-loan settlement would erase $634 million in borrower debt

What the proposed settlement would provide

A multistate coalition announced an agreement with Credit Acceptance Corporation on September 17. The proposed consent order estimates $388 million in full balance relief for certain accounts tied to repossessed vehicles and $246 million for certain qualifying borrowers whose vehicles were not repossessed. For the latter group, Credit Acceptance would also release its lien and provide the title when it has possession of it.

The proposal also creates a $60 million fund for consumers selected by the multistate committee, with distribution handled by a settlement administrator, and requires a separate $15.5 million payment to participating governments. The government payment is not consumer restitution, so it should not be added to the $694 million in estimated debt relief and restitution when describing direct consumer relief.

Eligibility is limited to defined Credit Acceptance accounts

The debt-relief provisions apply to specified high-risk Credit Acceptance accounts originated from November 1, 2015, through November 30, 2025, that remained open as of December 1, 2025. Eligibility depends on the lender's proprietary risk score, the payment-to-income measure defined in the proposed order, and whether the vehicle was repossessed and sold.

If the order is entered, Credit Acceptance would notify covered borrowers that no further payments are owed, request deletion of the associated credit-report tradeline, stop collection activity, and release applicable liens. A settlement administrator would determine restitution recipients. Borrowers should keep their contact information current and verify any notice through an official attorney-general or Credit Acceptance channel before sharing information.

Future loans would get new price and add-on controls

For consumers with a credit score below 600 or no score, the proposed order would require risk disclosures, income verification, and a comparison between the vehicle's selling price and a third-party retail book value. For covered borrowers below 600, the financed selling price could be no more than 109% of the highest listed retail book value.

Credit Acceptance would also have to take steps to prevent a dealer from raising a vehicle's price after connecting it with a financing application. Optional vehicle-service contracts and guaranteed asset protection products would require written consent, a payment comparison with and without the product, and a follow-up notice explaining cancellation options.

How shoppers can reduce financing risk now

• Get written loan offers from more than one lender before choosing a vehicle.
• Compare APR, term, amount financed, total payments, and the vehicle's out-the-door price—not only the monthly payment.
• Ask for every optional add-on to be shown separately and decline products you do not want.
• Check the vehicle's market value and question a selling price that changes after the lender or credit tier is known.
• Do not pay anyone who promises to obtain settlement relief; use official contacts to verify eligibility or notices.