INDIANA – Attorney General Todd Rokita announced today that his office has secured a multistate settlement with Credit Acceptance Corporation (CAC) that will deliver nearly $34.7 million in cash and debt relief to Hoosier consumers and the State of Indiana. The settlement resolves allegations that CAC originated car loans consumers could not reasonably afford and failed to stop dealers from packing those loans with unwanted add-on products.
“Sometimes Hoosiers need a loan to buy a car. That’s a major purchase, and they deserve to be treated honestly when they finance it,” Attorney General Rokita said. “Cars are already an expensive purchase, and when bad actors raise the cost by deceptively packing loans with products people don’t want—and creating loans that the lenders know can’t be repaid—the financial damage can be devastating. Thankfully, the settlement my team and I secured helps make it right, and Hoosiers who were taken advantage of will get their hard-earned money back or see their loans forgiven.”
CAC is one of the nation’s largest auto finance companies, providing car loans to consumers with limited or impaired credit histories. According to the settlement, CAC assigned each loan a proprietary “score” predicting how much the company would collect…