Auto Financing

Kansas City, MO: (Feb-15-08) A lawsuit was brought against Credit Acceptance Corp. by Marvin Fielder, a Kansas City resident, in 1996, which later was certified as a class action lawsuit. The suit alleged that customers were overcharged for fees and interest on automobile installment contracts assigned to Credit Acceptance, and that the repossession notices Credit Acceptance sent to customers did not comply with Missouri law. The suit, originally filed in Jackson County Circuit Court, was transferred to federal court because the suit contained a federal Truth in Lending Act claim. Sources stated that Credit Acceptance, founded in 1972 and based in Southfield, finances car buyers with impaired credit. The company went public in 1992.

The company has agreed to a settlement in the case, in which it agreed to send checks to 15,000 Missourians as part of a $50 million-plus settlement. Under the terms of the agreement, Credit Acceptance will write off $39 million in outstanding account balances and distribute $13.1 million in cash to eligible car owners who financed used-car purchases through the company. Additionally, for those car owners against whom Credit Acceptance obtained court judgments, the company has also agreed to show the judgments as satisfied or partially satisfied based on the account balances that were written off. [KANSAS CITY STAR: AUTO FINANCING]

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Reader Comments

Posted by
Due to my health, i had to stop working. I notified cac customet service. I asked for them to put the payment st the end (i dont know the correct tetm for it), but they told me know. Then they said i could payment arrangement. So i did but every 6months they was asking for more money. But on my credit report the loan was in defaulted. Did repo. Thry aunctioned the vehicle. Now they want me to pay the difference for the vehicle.can they do that?

Posted by
Got a car using them in 1995. It's was repo ed ... got a letter from the irs 21 years later saying I didn't claim a 1099 from credit acceptance and now owe the irs 2000 dollars. Called credit acceptance and they said they can close an account any time they want. This true???

Posted by
Jacob osburn
I financed through credit acceptance got in a wreck and paid my vehicle off with insurance and my deductible yesterday February 8 2016 I found out they claimed to repo my vehicle which is not what happened now I am subject to bad credit and so called delinquency in my credit do to this.

Posted by
carrie pierce
We had a van financed through credit acceptance. We did get behind but we were put on a payment plan and I paid. When I paid my last payment at the end of November 2014 and the day I made that payment I was not due again until December 4th 2014. However, they reprocessed my vehicle the day after I made my payment. We called them and they verified I was current. Now they are trying to sue us for the balance

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