Consumer complaint received 2022-07-06
Company: American Credit Acceptance, LLC
State: AL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with the interest rate

Complaint:
I opened a car loan with American Credit Acceptance XX/XX/XXXX in the state of Alabama purchasing a car XXXX XXXX XXXX from XXXX located in XXXX, XXXX. At the time I was not aware of Usury Laws in each state ( which is how they get away with taking advantage of customers ), but now I am aware that this company has been charging me an illegal interest rate of 26.5 %. When I purchased the car the sticker price was {$12000.00}, a XXXX down payment and with other charges financed {$14000.00}, 72 payments {$400.00}, {$6.00} to pay XXXX XXXX. As of XXXX XXXX ( 5 years ) my pay off balance is {$13000.00}. Under Alabama Code Title 8 the legal maximum Rate of Interest is 8 %. American Credit Acceptance are preying lenders and use loopholes and customer insensibility to take advantage of people and charge illegal interest rates. I have talked with XXXX  serveral times to refinance the car to lower my monthly payment that have refused and have stated that they do not refinance loans. Rescently, I went to my bank to see about refinancing I was informed that the interest rate come back that was over the Alabama limit, and that I still owned so much money on the loan. I live on a SSI check a month and when the car was purchased my mother co-signed for me ( on SSI too ) I feel that XXXX  advantage of us because of our SSI and discrimined against us because of low credit score with a higher interest rate.Penalty for Usury ( Unlawful Interest Rate ) If the interest charged exceeds the amount legally permitted by Alabama law, its usurious. If so, the contract can not be enforced, except to pay the principal originally loaned. The borrower can also deduct from the principal any interest already paid. 

At the present time I owe {$13000.00} for 2 more years when the car was only financed for {$14000.00}. This unfair practice by XXXX  has really placed me in a hard position. Also on the retail Installement contract with XXXX reads- intrest rate- XXXX, finance charge- {$14000.00}, total amount of payments {$29000.00}, total sale price including down payment- $ XXXX {$29000.00}, American Credit knows that their customers wont be able to afford the loans they are given but agree to let them purchase them from car dealerships anyway. Thats because, XXXX  knows that even when borrowers default, they can make money in other ways ( such as repossesion, late fees, high interest rates ) I understand that XXXX  is a main candidate in the subprime auto lending industry but I am accussing them of violating laws that prohibit outrageous or dishonest business practices by writing loans they know are destined to fail, and by exposing borrowers to unnecessarily high interest rate. The high-interest retail installment contracts that it knew or should have known many borrowers would be unable to repay.This company profited from these contracts, borrowers experienced credit harm, and, in some instances, lost their vehicles or down payments.I also alleged that some American Credit Acceptance have hidden finance charges, which resulted in violations of the state of Alabama 8 % usury cap and that American Credit Acceptance engaged in unlawful collection practices.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation