Credit Acceptance will provide cash and debt relief and change lending practices under a multistate agreement.
New Jersey borrowers will receive more than $28.5 million in cash and debt relief under a $694 million multistate settlement with Credit Acceptance Corporation over allegations of predatory auto lending.
New Jersey and 40 other states reached a settlement with Credit Acceptance, one of the nation’s largest auto finance companies, on Sept. 17.
The states alleged Credit Acceptance targeted low-income people and borrowers with poor credit, providing expensive car loans that its own system predicted some borrowers could not afford. When borrowers defaulted, the company allegedly used “aggressive debt-collection…