More than 55,000 borrowers will have auto-loan debt erased under a $700 million settlement with subprime lender Credit Acceptance Corp., including about 2,500 New Yorkers, the state attorney general’s office announced.
The agreement includes more than $630 million in debt relief, $60 million in restitution for consumers whose vehicles were repossessed and $15.5 million in penalties to the states. New York is expected to receive about $34 million in consumer debt relief, restitution and penalty payments.
Attorney General Letitia James reached the settlement with a bipartisan coalition of 39 other states and the District of Columbia. The agreement also requires Credit Acceptance to change how it handles certain defaults and add-on products…