Consumer complaint received 2024-01-16
Company: CREDIT ACCEPTANCE CORPORATION
State: NJ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Repossession
Sub-issue: Lender trying to repossess or disable the vehicle

Complaint:
Credit Acceptance Corporation Account # : XXXX On XX/XX/2023 I was manipulated and tricked by XXXX XXXX XXXX XXXX ( Dealership ) and Credit Acceptance Corporation ( CAC ) into purchasing a vehicle via a predatory and unaffordable loan. Firstly, XXXX XXXX XXXX illegally advertised that they could provide lower installment payments if a consumer ( myself ) paid higher down payments in cash. XXXX XXXX XXXX XXXX advertised that they had special programs with Lenders that, once approved " we will not have to make an installment payment for XXXX  days. '' Additionally, The Sales associate used aggressive sales tactics, and provided me with random numbers on a piece of paper detailing the various monthly payments I could expect if I complied with the down-payment they were requesting> ( Initially requesting {$5000.00} ) I informed him that to my understanding, no cash or legal tender is to be used in a credit sale or consumer credit transaction, as this is a form of fraud. 

After standing my ground on my rights as a consumer, the associate stepped away and said that he was going to work a deal with the Lender ( CAC ) to which he then returned to the sales desk with another piece of paper saying that if I paid {$1000.00} down ( using cash in a consumer credit transaction ) I would receive lower interest on my Loan from Credit Acceptance Corporation and I would have a lower monthly payment. I was desperate because I needed a car for work and had been going back and forth with the representative for XXXX hours on being adamant against making any form of down-payment when I knew I was within right to be approved without it ; I requested that he simply submit my application for consumer credit extension. It was not until I processed a Payment to XXXX XXXX XXXX XXXX in the amount of {$1000.00} via my personal debit card that they went ahead and submitted my application for credit extension to Credit Acceptance, resulting in them calling me to confirm that a credit application was submitted in my name via XXXX XXXX XXXX XXXX XXXX The actual value of the Vehicle was not disclosed before or after the down-payment was made. 

Credit Acceptance Corporation as Well As XXXX XXXX XXXX XXXX completely failed to provide all of the legally and federally required information as it pertains to a consumer credit transaction or credit sale and as such a great deal of information was completely omitted from my consideration and decision making process, information that infringed on my right to recission based on unfavorable or outright illegal and predatory contract terms. 

Per the CFPB website, Section XXXX Finance Charge : as a part of a consumer credit transaction, A Truth in Lending Statement as well as a finance charge detailing the sum of all charges must be provided to a consumer before initiating a credit sale, or else proper consideration of all terms of the contract is not possible and it thus becomes an adhesion contract of some sort. This is trickery, Because Credit Acceptance as well as XXXXXXXX XXXX XXXX XXXX XXXX purposely manipulated key terms of the loan agreement or COMPLETELY OMITTED THEM, including the principal and interest amounts, and did not disclose XXXX  of dollars in credit charges ( Failed to disclose the finance Charge, Late fees, Penalties, etc. ), I was told In addition, XXXX packaged this illegal loan into a security that it sold to investors and debt XXXX, including my consumer credit information, without my consent. 

To my understanding, it is illegal to distribute or sell consumer credit report information, without permissible purpose, especially information as it pertains to the nature of consumer credit transactions and the relations between consumer and " lender ''. These deceptive lending practices drastically lowered my credit scores, is affecting my ability to qualify for future Credit extension and negatively impacting my ability to qualify for Mortgages or Leases of any kind. I was tricked into an unaffordable, high-interest auto loan contract, while XXXX XXXX XXXX XXXX and Credit Acceptance Corporation XXXXut backroom deals s to protect their own profits. 

Credit Acceptance also engaged in illegal and unfair debt collection practices, they never communicated when I was to start making payments, after promising that payments were not obliged until after the " XXXX grace period ''. The initial down-payment I made was not subtracted from the principal amount due and I found out only after the first billing cycle that I owed CAC a missed payment, meaning that the XXXX  day grace period that was promised at the point of the credit sale was not obliged and they breached their own terms of payment.

Lastly, this brings me to Today, My Vehicle, which I have Equitable interest in and is my principle dwelling ( mobile home ) was seized without due notice of repossession, resulting in my personal belongings including SENSITIVE INFORMATION AND RECORDS causing XXXX  of dollars in damages. The repossession agent was also aggressive and threatened me that if I attempted to stop him he would hurt me, which is also illegal. I have a photograph with evidence of the Down Payment made to XXXX XXXX XXXX XXXX XXXX, as well as the ONLY documentation provided to me on the day of Initiating this Credit Sale which has an amount circled and was stated to be my monthly instalment payment ( XXXX ) which was also a LIE. My Monthly installment, per CAC is {$440.00} per month. Because of the confusion, I attempted to rescind my agreement into the contract, and I was told that, I could not do so because it was considered " Buyer 's Remorse '' and I informed a credit acceptance representative that I am being affected by a Predatory and Illegal Loan, which is violating my rights as a consumer.

There is also inaccurate, misleading and damaging reporting occurring on my credit report : various balances being showed that I owe, and exaggerated late payments.

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