Credit Acceptance Corp. will pay $694 million in cash and debt relief to resolve allegations from Pennsylvania and 40 other states.
Pennsylvania and 40 other states have reached a settlement with Credit Acceptance Corp. that will deliver $694 million in cash and debt relief to consumers nationwide.
Pennsylvania Attorney General Dave Sunday announced the agreement last week with CAC, one of the nation’s largest subprime auto finance firms.
An investigation conducted by a multistate coalition of attorneys general alleged that CAC originated vehicle loans it knew or should have known borrowers could not afford based on its own internal metrics.
The practice,…