Wisconsin is joining a multistate settlement with Credit Acceptance Corporation, a major auto finance company that provides loans to people with limited or impaired credit.
The Wisconsin Department of Justice says the settlement will provide an estimated $960,000 in restitution to Wisconsin consumers, along with more than $10 million in debt relief. Wisconsin will also receive about $218,000.
The settlement resolves allegations that Credit Acceptance made risky auto loans to consumers it knew, or should have known, could not afford them. It also addresses allegations that some auto dealers improperly added vehicle service contracts and GAP insurance to loan contracts without consumers fully understanding the purchases.
Nationwide, the settlement provides $60 million in cash restitution and $634 million in debt relief for eligible consumers.
New protections will also require additional loan disclosures, restrictions on certain vehicle prices, monitoring of dealers, and debt-relief options for some borrowers with particularly risky loans.
The settlement takes effect November 2nd. Consumers who qualify for debt relief will be notified by Credit Acceptance, while those eligible for restitution will be contacted by a claims administrator.
Consumers with questions can call 800-634-1506.
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