Consumer complaint received 2023-07-02
Company: CREDIT ACCEPTANCE CORPORATION
State: NJ
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Charged fees or interest you didn't expect

Complaint:
Subject : Complaint Regarding Excessive Charges on Car Loan Credit Acceptance account : XXXX Dear Sir/Madam, I am writing to file a complaint regarding the exorbitant charges associated with my car loan credit acceptance, which has placed a significant financial burden on me and has negatively impacted both my credit report and personal life. I urge you to investigate this matter and take appropriate action to rectify the situation. 

I entered into an agreement with Credit Acceptence on a car loan ACCOUNT # XXXX for the purchase of a car XXXX XXXX XXXX The original price of the car, as stated in the sales agreement, was {$16000.00}. However, I have recently discovered that the terms and conditions of the loan have led to an exorbitant cost of credit, causing me substantial financial distress. 

The annual percentage rate ( APR ) applied to my car loan is an astonishing 22.99 %. and now the loan is {$41000.00} This excessive interest rate has led to a total cost of credit that far exceeds the initial price of the vehicle. I find it unconscionable that I am being charged nearly three times the original cost of the car due to the exorbitant interest rate now the prices went up to. As a result, I am struggling to meet the monthly payments, which has led to late payment penalties and a decline in my credit score. 

The financial strain caused by this loan agreement has had a detrimental impact on my personal life as well. The stress of constantly falling behind on payments, fearing repossession, and experiencing a decline in my creditworthiness has taken a toll on my mental and emotional well-being. It has caused sleepless nights, XXXX, and a sense of hopelessness. 

I am seeking your assistance in rectifying this unjust situation. I kindly request that you investigate the terms and conditions of my car loan agreement and take appropriate action against Credit Acceptence for their predatory lending practices. I believe that such practices not only exploit vulnerable consumers but also undermine the principles of fair lending and consumer protection. 

I kindly request the following actions be taken : 1. A thorough investigation into the terms and conditions of my car loan agreement with Credit Acceptence focusing on the excessive interest rate and the resulting exorbitant cost of credit. 

2. An assessment of the appropriateness and legality of the terms and conditions imposed by Credit Acceptence, particularly in relation to the applicable consumer protection laws and regulations. 

3. Prompt intervention and enforcement action against Credit Acceptence, if found to have engaged in predatory lending practices, to ensure fair treatment and appropriate remedies for affected consumers. 

4. Assistance in renegotiating the terms of my car loan to a more reasonable and manageable interest rate that reflects market standards and promotes affordable monthly payments. 

I am hopeful that, with your intervention, a resolution can be reached that alleviates the financial burden imposed on me and prevents further harm to my credit report and personal well-being. I kindly request that you keep me informed of any progress made in addressing this complaint and the steps taken to rectify the situation. 

Thank you for your attention to this matter. I look forward to a favorable resolution and appreciate your efforts in upholding consumer rights and ensuring fair lending practices. 

I attached my original car loan contract for proof Sincerely

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