Consumer complaint received 2023-03-20
Company: CREDIT ACCEPTANCE CORPORATION
State: TN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
To Whom It May Concern : Summary I am writing this letter to request that my credit profile be corrected. While your system may reflect late payments, I have identified several inaccuracies throughout the history of this loan which would nullify those negative marks. Attached you will find documentation showing the difference between the purchase price of my vehicle, the initial amount reported to the credit agencies, and the initial balance recorded in the system of Credit Acceptance Corporation. While these may appear to be minor discrepancies or potential mistakes, recent litigation in several states have identified a pattern of predatory lending, the inflation of balances, hidden charges, the forceful adding of additional products to the loan, as well as several other procedures which violate the TRUTH IN LENDING ACT, as well as the FAIR CREDIT REPORTING ACT. 

Description of Situation I initially financed my vehicle through CAC ( Credit Acceptance Corporation ) in the fall of XXXX with an initial purchase price of {$15000.00}. I paid a down payment of {$3000.00}. This should have made the financed price {$12000.00}. However the balance reported initially to the credit agencies was {$16000.00} ( which I was told was due to taxes and fees and a warranty due to the high mileage of the vehicle ), while the initial balance in CACs system was recorded as {$26000.00}. For a vehicle to be financed at {$12000.00}, and ultimately cost over {$26000.00}, after being paid off over 6 months early, violates the usury law in the state of Tennessee. My research has shown that CAC has already been held liable in the state of Massachusetts and is engaged in current litigation with the state of New York, as well as the Consumer Financial Protection Bureau for charges identical to those I have outlined throughout my own personal experience. In the fall of XXXX, I looked to finance a vehicle to not only have reliable transportation, but also to build credit as I looked to purchase a home in the future. I was unaware of the situation that I was placing myself in. CAC has reported over 30 payments as late, ( most of which say 120 days ) even during the period of time that should have been covered under the CARES act during XXXX, and essentially have destroyed my credit profile even though I ultimately paid off the vehicle, and also did so over 6 months early. Even after I paid off the remaining balance on XX/XX/XXXX, to end this dreadful situation, I still was reported late as of XX/XX/XXXX. I have exhausted the dispute process with CAC and have been unsuccessful due to the inaccurate recording of balances, payments, and other information within CACs system. However, this particular creditor has demonstrated the ability to, and the practice of manipulating their own systems, violating consumer rights, and other unfair and illegal practices in an effort to improve and sustain a certain financial bottom line. 

Resolution I request the deletion of ALL negative remarks on my CAC account with all 3 credit agencies due to their inaccuracy. Unfortunately, this situation has placed me in a position where I can not move forward without reconciliation. While I am frustrated and distraught with the position that this matter has placed me in, and I am well aware of the fact that I was taken advantage of, I have faith in your agency. I have faith that you will assist me and do what is just. I look forward to your response. 

Thank You In Advance,

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 non-monetary relief