Credit Acceptance Corporation or CAC is a subprime auto lending company, which receives a lot of consumer complaints to our law firm for debt harassment. Find out who they are, why they might be calling, and how you can stop them.
What is Credit Acceptance Corporation – CAC?
Credit Acceptance Corporation or CAC is a publicly-traded, third-party auto loan agency based in Michigan. CAC has received consumer complaints alleging violations such as improper communication, credit reporting, and collection tactics. If you have been contacted by Credit Acceptance Corporation, make sure you understand your rights before taking action.
According to the Better Business Bureau (BBB), Credit Acceptance Corporation was founded and incorporated in 1972 in Michigan. The BBB established its profile page in 1990. It lists Credit Acceptance Corporation as a consumer finance and credit services company.
According to its website, Credit Acceptance Corporation offers “automobile dealers financing programs to help them sell vehicles to consumers, regardless of their credit history. These programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales; and from sales to customers who come into the dealership believing they have credit issues, but qualify for traditional financing.”CAC “enrolled dealers share in the cash flows from the contract, which creates an alignment of interests and is a critical element of CAC’s success.” For car buyers, CAC’s “program is specifically designed to help credit-challenged car buyers” and CAC “reports to the three national credit reporting agencies, giving consumers an opportunity to improve their credit score and potentially qualify for more traditional financing.”
Credit Acceptance Corporation website provides information for car dealers and information for car buyers. Their dealer pages inform site visitors that CAC “is a leader in the subprime finance industry, helping dealers sell more cars and make more money.” Credit Acceptance Corporation offers its programs to independent, Buy Here Pay Here, and franchised dealers in all 50 states. CAC enrolled dealers benefit from “used and new car sales to consumers who otherwise could not get auto financing or a loan approval due to bad credit or no credit” and “repeat and referral sales generated by these same buyers.” The Dealer FAQ page indicates that enrolled dealers have access to CAC’s “proprietary Credit Approval Processing System”, which gives dealers “the opportunity to offer an approval to every customer they submit in 30 seconds or less, on every used car on their lot (and many new cars as well)…” More information is available by calling Credit Acceptance Corporation or submitting an online inquiry form.
The car buyer pages inform site visitors that CAC “believes everyone deserves a second chance” and “empowers car dealers nationally to help people with bad credit or no credit buy a new or used car.” CAC provides information about credit scores, a credit Q&A, which informs site visitors that if they finance through CAC, they “have the opportunity to improve their credit scores through on-time payments” to CAC, and a tool to input information and obtain “credit acceptance” information related to three enrolled dealers. The car buyers FAQ page answers questions about contacting CAC, payments, payoffs, loans, and refinancing.
The Credit Acceptance Corporation website does not provide a lot of detailed information about its business practices or compliance policies. It does include certain financial and business information and public filings in a section geared towards “investors” and standard, legally mandated information about information privacy and security.
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How many complaints are there against Credit Acceptance Corporation – CAC?
The BBB has closed 612 complaints against Credit Acceptance Corporationin the past three years, with 252 closed in the past 12 months. Most of those complaints allege problems with billing, collections, and customer service. Since April 2012, the Consumer Financial Protection Bureau (CFPB) has received 754 complaints about CAC. Justia lists more than 250 federal civil lawsuits involving Credit Acceptance Corporation.
Can you help me file a No Fee Lawsuit against Credit Acceptance Corporation – CAC?
Absolutely. Here are some Sample Cases against Credit Acceptance Corporation
According to the BBB, in August 2016, Credit Acceptance Corporation agreed to settle a government action by the Kansas Attorney General, and Kansas District Attorneys from Sedgwick County and Johnson County by which CAC agreed “to issue credit to approximately 2,100 consumers who used the financing company in the purchase of a vehicle” as part of a settlement with the Kansas prosecutors who “accused the company of improperly disclaiming warranties” in violation of the Kansas Consumer Protection Act.
The BBB has received complaints against Credit Acceptance Corporation alleging problems with billing, collections, customer service and improper credit reporting. The details of many of the complaints are not available on the BBB website, but the complaints that are detailed on the BBB profile page and on the CFPB website include complaints about improper late fees and application of payments, incorrect credit reporting, “harassing” and “rude” communications, “unprofessional” and unfair business tactics, and the consumers’ inability to obtain information or resolve loan payment issues even after contacting CAC. The 59 negative reviews on CAC’s BBB profile support these allegations.
In June 2017, a consumer alleged in a complaint to the CFPB that he received a registered letter from CAC stating that his loan was in default. According to the complainant, CAC automatically withdrew his loan payments and his loan was not in default. He contacted Credit Acceptance Corporation, and the CAC representative admitted that the loan was not in default and told the complainant that he had received the letter solely because of the state and area he lived in, which the complainant indicated constituted “discrimination at its finest” and that it “falls under harassment…” When the complainant asked the company to write him a letter of apology, the Credit Acceptance Corporation representative told him the company does not do that.
In May 2016, a BBB complaint indicated that the customer service she received from Credit Acceptance Corporation had been “so bad” and “no help at all” and that she has been unable to get accurate information about her loan status despite repeated requests. The complainant alleged that she was current on her auto loan through CAC other than missing one payment when her pay date changed at work, which she later made up. According to the complainant, Credit Acceptance Corporation nevertheless repossessed her car in 2016 based on a missed payment in June 2014 on the same day it took a car payment from her. After retrieving her car and paying what she believed was owed, the complainant received a call from CAC telling her she owed more money. The complainant spoke with a supervisor in a recorded call, during which the supervisor confirmed that the complainant would be up to date on her loan by making a specific payment. The complainant alleged that she made the specific payment, but “a couple weeks later” began receiving collection calls. The complainant indicated that she had been paying and not dodging and CAC was still treating her like a deadbeat” and that Credit Acceptance Corporation could not explain how the complainant owed more money. In addition, Credit Acceptance Corporation approved and set up her payment schedule, but then claimed she was late on payments for making them on schedule. The complainant indicated that she felt she was “getting nowhere” with Credit Acceptance Corporation”, that she had “reached out to Colorado legal services”, and that she was “so nervous to walk outside and” find her car to “be gone”, leaving her with “no way to get to work.”
Consumers are protected from abusive debt collectors from the Fair Debt Collection Practices Act (FDCPA). By way of instance, the debt collector must identify himself or herself, who they’re working for, and what debt they’re collecting. The FDCPA claims that debt collectors can’t use any deceptive or misleading representation, like implying the debt is secured by the USA or any particular state. Additionally, they can’t use a badge or uniform to pretend they’re a government employee collecting a debt. Misrepresentation is a violation of the FDCPA and could be reported as such.
In case you’ve been a victim of a debt collector’s wrongdoing, then you can search for justice under the FDCPA. You have the right to pursue a claim against the debt collector; if you prevail, you can collect up to $1,000, plus attorney fees and court costs.
You are receiving multiple calls per week from third party collection agencies
You are receiving early morning or late night calls from debt collectors
You are recieving calls at work from a debt collection agency
Debt collectors are calling your friends, neighbors, or coworkers
Collectors are threatening you with violence, a lawsuit, or arrest
A debt collector attempts to collect more than you owe
You are being threatened with negative credit reporting
A debt collector attempts to intimidate you
Criminal accusations are being made towards you
Use of obscene language during an attempt to collect
Automated robocalls are being made to your phone in an attempt to collect
If you’ve been harassed by debt collectors and even one of these has happened to you, we can help. We will fight for your rights.
The Lemberg Law legal team is committed to holding debt collectors accountable, so complete our form for a FREE case evaluation, or call 844-685-9200.
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Can You Help Me Delete Credit Acceptance Corporation CAC from My Credit Report?
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Can Your Firm Help me Deal with Credit Acceptance Corporation?
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About the Author:
Sergei Lemberg is a lawyer whose practice focuses on consumer law, class actions and personal injury litigation. He has been repeatedly recognized as the “most active consumer attorney” in the country. In 2020, Mr. Lemberg represented Noah Duguid in the United States Supreme Court in the case entitled Duguid v. Facebook. He is the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.