Consumer complaint received 2024-01-03
Company: CREDIT ACCEPTANCE CORPORATION
State: MI
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
On XX/XX/XXXXXXXX I financed a XXXXXXXX XXXXXXXX for a total price of {$4800.00} through a car dealership. During the purchase process, the dealership insisted that I also purchase a warranty for {$2600.00}, claiming that it was necessary to include it in order to obtain the vehicle. I later discovered that the warranty was not necessary for the purchase, and furthermore, it did not provide the coverage that was promised. The warranty company has a reputation for non-payment and refusal to cover bills, which has resulted in mechanic liens on vehicles. After considerable effort, I was able to secure a refund for the warranty, which was applied to my loan. 

However, I discovered that I was being charged interest on the combined amount of the loan and warranty, even though I did not want or need the warranty. In XXXX, my vehicle was involved in a hit and run incident, resulting in it being totaled. While waiting for payment from my insurance company, XXXX, which should have covered the entire loan, I missed a monthly payment and was promptly reported to the credit bureau. I have been reported for non-payment almost every month since then, even when I have made my payments on time. Furthermore, I have been charged a {$10.00} late fee every month, even when payments were made on time. XX/XX/XXXXXXXX  is being reported that I didnt make a payment, which I did make a payment of {$210.00}. 
Also before the negative comments per placed on my credit report, I was not at all informed by letter what was going to be reported, especially negative remarks. I was harassed with phone calls when payments were not made on time, starting the next day. They would change their phone numbers and call up to four times a day. The law states that they can not call more than 7 times in a 7 day period. 

Additionally, Credit Acceptance, the financing company, does not provide any records of previous payments or financial information on their website. There is no breakdown of how payments are allocated towards the loan, and additional expenses, such as the late payment fees I was incorrectly charged, are added without explanation. It was only today, several days after closing my account, that I was able to access a list of my transactions. 

The record keeping by Credit Acceptance is untrustworthy and does not adhere to proper mathematical calculations. For example, my credit report stated that I made a {$4900.00} payment, while in reality, it was {$5000.00}. On another occasion, my credit report indicated that I had decreased my loan by " {$87.00} '' over two months, when I had actually made a {$210.00} payment. There are numerous discrepancies, and the amount owed never matches what was previously communicated by the company 's representatives. 

Upon receiving insurance funds ( {$5000.00} ), a refund from the warranty ( {$2600.00} ), and payments made since XX/XX/XXXX ( {$2900.00} ), Credit Acceptance informed me that I still owed over {$3000.00}. When I inquired about this, I discovered that they had added the insurance and warranty refund to the total loan amount and not the principal of the loan. After numerous conversations with representatives and the collection department, I was offered a payment of {$600.00} to pay off the loan in full and have it reported as being in good standing to the credit bureaus. I made this payment, and the account was closed on XX/XX/XXXXXXXX  However, when I checked my credit report on XX/XX/XXXXXXXX it stated that I was delinquent on my loan and over 30 days late in making a payment. As a result, my credit score dropped by 30 points. Due to Credit Acceptance 's inaccurate reporting, my credit score has dropped a total of XXXX points since XX/XX/XXXXXXXX 

I have been diligently working to pay off my debts, including student loans, in order to improve my credit score. However, the inaccuracies caused by C.A. are hindering my progress and preventing me from obtaining a new car or finding housing. I was relying on the improvement in my credit score to secure an auto loan with a lower interest rate than the 22 % being charged by Credit Acceptance. 

When the account was paid off, C.A. reported Settled for less. This is not at all the truth! Because of this comment on my credit report I am unable to get any auto lender to lend to me. 

I was behind at one point with payments from a job loss. I was making arrangements to make it up to date prior to my accident. When I contacted C.A. to address the reporting inaccuracies, I was instructed to contact the credit bureaus and fill out a dispute form through credit acceptance. This has only added to the difficulties and inconveniences caused by C.A. 's careless employees. And prolonging my ability to purchase a vehicle that I desperately need. I sent online and mailed in disputes with all three credit bureaus and one directly to credit acceptance from the form that they sent me in the mail. 

Credit Acceptance 's practices, which include predatory lending and irresponsible reporting, have severely impacted my financial situation and creditworthiness. I will be reporting them to the XXXX XXXX XXXX Consumer Financial Protection Bureau, and the Michigan Attorney General 's office. I will escalate this to a lawyer if need be, and potentially find others to make a class action lawsuit. I will also bring this matter to the news/media. 

I kindly request that credit acceptance remove this disputed information from my credit report in order to rectify the damage caused. 

Thank you for your assistance. 

Sincerely, XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation