Consumer complaint received 2023-11-21
Company: CREDIT ACCEPTANCE CORPORATION
State: IL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
I got approved for a auto loan in XXXX XXXX XXXX by credit acceptance. On XXXX XXXX, I made a payment arrangement on my XXXX payment for XXXX the only payment I was ever late on. I paid XXXX dollars that the representative from credit acceptance told me to pay and the remaining balance was split into XXXX payments, my new monthly payment was XXXX until the late balance was paid in full. However I totalled my vehicle 4 days later on the XXXX of XXXX. At that time I had full coverage and Gap from XXXX XXXX XXXX, on my vehicle. The balance on my vehicle at that time was XXXX. My Insurance company paid XXXX and sent XXXX to Credit acceptance after taking out my XXXX deductible. Credit acceptance said they applied my insurance check to the past due balance and late fee of XXXX first and the remaining balance towards the principal. which left me owing XXXX, Credit Acceptance said they would file for my Gap to pay the remaining balance, even though I wanted to do it myself, after finding out that I couldn't file myself or even speak to this Gap company because this gap company is allegedly a third party to credit acceptance but i have the same account number for Gap and credit acceptance, and this gap company told me they only correspond with credit acceptance and cant correspond with me, even though I pay them separately. Which I didn't know any of this until the accident. Credit acceptance sent over a Gap addendum to me by email that has my name on it electronically that I didn't sign or never seen at the time I purchased my vehicle from the dealership. I only signed that I purchased Gap and a warranty that only shows the amount of these warranty, -insurance. I never signed a contract for neither. When credit acceptance filed my Gap they reported to this Gap company that I had a late balance of XXXX instead of stating that the late balance was taking care of by my insurance company. Credit acceptance did this to keep me owing on the loan and charging me XXXX percent interest fees, even after they got my insurance check they are still charging me over XXXX dollars a month in intrest fee. Plus i still have a monthly bill of XXXX dollars due in XXXX as if I still owe on the loan. The Gap company only paid {$3300.00} stating I had to pay the late fee for XXXX of XXXX, also credit acceptance reported to gap {$81.00} for a contract service refund, that I didn't receive, and do not know anything about, I was also charged XXXX for taxes, tags and license. which my insurance company said they will not be reimburseing. My Insurance company also stated I can apply my insurance check the way I deemed fit since im the only one paid for it, and they only paid for the blue book value of my vehicle, and XXXX dollar deductible, there is no law in XXXX  or XXXX, that states I can not pay the late fees out of my insurance check, that came from my insurance company. Plus there is no contract I signed with credit acceptance stating that in a event of a accident any check from my insurance company can only be applied to the principal and not late fees. I did sign that credit acceptance is not supposed to do Oral contracts and make up things not stated in the contract or add additional hidden stipulations to the original contract, this is considered a breach of contract. Therefore if credit acceptance applied my insurance check to the past due balance and late fees, like i requested, and they told me they did that first, then the only remaining balance that is left is the remaining balance of the vehicle. Also this Gap company allowed my insurance company to pay the XXXX deductible that was supposed to be taken care of by the Gap company that's stated in the addendum sent to me from credit acceptance, and the Gap company didn't hold themselves accountable to pay that, ,but trying to make me pay the whole XXXX that was taking out of my insurance check. Which my insurance company paid from the date of the accident which was the XXXX of XXXX. So i really only owe a 11 day payment for XXXX. credit acceptance did not even prorate that balance. Therefore this gap insurance is a fraud because the only remaining balance on my account is the remaining balance of the vehicle which this Gap company stand for guarantee auto protection that i thought i paid for, but this company is giving every excuse not to pay and keep me in contract and in debt, and or Credit acceptance just wanted to keep charging me ridiculous intrest and late fees on the XXXX and now up XXXX to now XXXX after 1 month of interest on the XXXX that should have been remaining and these fees are not even loan related. They are {$980.00} taxes, tags, title is not money i borrowed. Its money i already paid on my vehicle that my insurance company will not reimbursed. XXXX is a service contract refund that i didn't receive or do not know anything about. I'm also being charged 2x on my late fees and XXXX payment if my insurance check already took care of it.So I'm filling this complaint because I believe it's a conflict of interest with the Gap company and credit acceptance. Plus credit acceptance is just adding fees on me to keep me in debt with them. I receive XXXX and already loss my vehicle and this company doesn't care they just want to keep me in debt and keep applying interest rates to money I don't even owe and that's not part of a contract I signed with them.

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