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Vermont Attorney General Announces $694 Million Settlement With Credit Acceptance Corporation

On September 18, 2026, Vermont Attorney General Charity Clark announced a multistate settlement with Credit Acceptance Corporation (CAC), joined by 40 state attorneys general, resolving allegations that CAC originated car loans consumers could not afford. Under the settlement, CAC will provide $694 million in cash and debt relief to consumers nationwide. Vermont will receive $701,251 in total relief, comprising $124,841 in restitution to 87 consumers and $462,871 in debt relief to 60 consumers, with the remaining $113,539 paid to the state. CAC is one of the nation's largest auto finance companies, providing car loans to consumers with limited or impaired credit histories. The attorneys general alleged that CAC assigned proprietary "scores" to loans predicting collection rates, but many consumers with low-scoring loans could not reasonably afford repayment. Many of these loans resulted in consumer defaults and vehicle repossession. The settlement includes significant injunctive reforms to CAC's lending practices. CAC must provide "off ramps" for risky loans made from December 2025 onward, offering qualifying consumers 95 percent debt relief and prohibiting collection lawsuits against them for a five-year period beginning November 2, 2026. CAC must prevent unlawful packing of Vehicle Service Contracts (VSC) and Guaranteed Asset Protection (GAP) products through enhanced pre-purchase disclosures, post-purchase notifications, and easier cancellation processes. The company must provide pre-loan disclosures about default risks and vehicle value, and institute a price cap of 109 percent of retail book value for certain consumers for seven years. Eligible consumers will be notified by CAC or a claims administrator. Vermont consumers with questions may contact the Attorney General's Office Consumer Assistance Program (CAP) at 800-649-2424.

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Vermont Attorney General Announces $694m Multistate Settlement with Credit Acceptance Corporation

On September 18, 2026, Vermont Attorney General Charity Clark announced a multistate settlement with Credit Acceptance Corporation (CAC), joined by 40 state attorneys general, resolving allegations that CAC originated auto loans the company knew, or should have known, consumers could not afford. CAC will provide $694m in cash and debt relief to consumers in connection with their car loans. Vermont will receive $701,251 in total relief, comprising $124,841 in restitution to 87 consumers and $462,871 in debt relief to 60 consumers, with the remaining $113,539 paid to the state. The settlement addresses CAC's lending practices, which allegedly targeted consumers with limited or impaired credit histories. CAC assigns a proprietary "score" to each loan, representing its prediction of the percentage amount it will collect from all sources. The attorneys general alleged that many consumers could not reasonably afford CAC's low-score loans, including those where CAC predicted consumers would not repay even the loan's principal amount. Many of these loans resulted in consumer defaults and vehicle repossessions. The settlement includes significant injunctive reforms effective November 2, 2026. CAC must provide "off ramps" for certain risky loans made from December 2025 onwards, offering qualifying consumers 95 percent debt relief and prohibiting collections lawsuits for five years. CAC must prevent unlawful Vehicle Service Contract (VSC) and Guaranteed Asset Protection (GAP) product packing through enhanced pre-purchase disclosures and post-purchase cancellation processes. The company must provide pre-loan disclosures about default risks and vehicle value, and institute a price cap for vehicle prices at 109 percent of retail book value for certain consumers for seven years. Eligible consumers will be notified by CAC, while those eligible for restitution will be contacted by a claims administrator. Vermont consumers with questions may contact the Attorney General's Office Consumer Assistance Program at 800-649-2424.

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Coalition of State Attorneys General Announces $694m Multi-State Settlement With Credit Acceptance Corporation

On September 18, 2026, a coalition of state attorneys general announced a multi-state settlement with Credit Acceptance Corporation (CAC), resolving allegations that CAC originated numerous predatory car loans that consumers could not afford. In the settlement, the attorneys general allege that CAC assigned proprietary "scores" to loans predicting collection rates, but many consumers with low-scoring loans could not reasonably afford repayment, and many of these loans resulted in consumer defaults and vehicle repossession. Under the terms of the settlement, CAC was fined $694m in cash and debt relief to consumers nationwide.The settlement also requires CAC to make various reforms to its lending practices. CAC must provide "off ramps" for risky loans made from December 2025 onward, offering qualifying consumers 95 percent debt relief and prohibiting collection lawsuits against them for a five-year period beginning November 2, 2026. CAC must also prevent unlawful packing of Vehicle Service Contracts (VSC) and Guaranteed Asset Protection (GAP) products through enhanced pre-purchase disclosures, post-purchase notifications and easier cancellation processes. Additionally, CAC must provide pre-loan disclosures about default risks and vehicle value, as well as instituting a price cap of 109 percent of retail book value for certain consumers for seven years. The settlement was coordinated jointly by the attorney generals of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington and Wisconsin.