Consumer complaint received 2021-02-03
Company: CREDIT ACCEPTANCE CORPORATION
State: MN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem with paying off the loan

Complaint:
I obtained a vehicle at XXXX. I was financed at a 22.99 % through Credit Acceptance. After paying almost XXXX, I was advised that I still owe almost XXXX. To my horror, I did not realize that financing was almost at 50 % with Credit Acceptance until My vehicle was hit while it was parked. Insurance paid almost XXXX towards the vehicle and I was waiting for the Gap Insurance to take care of the remaining balance. During this time, I spoke to over 25 representatives who never advised me that Gap Insurance does not cover pass due balances. This drag out over a period of two months where more than 2 payments were missed while waiting for Gap Coverage. Once Gap Insurance was paid, they only paid about XXXX leaving another balance on the loan. Credit Acceptance failed to update my Credit with accurate information. I continued to callback and once this was paid was when I was advised that Gap Insurance does not pay past due balances. 

I called to advised the Representative at Credit Acceptance that this seems like unfair practices as out of the 25 representatives I spoke to, no one ever offered me a payment plan during this entire ordeal. I was blindsided at how they purposely withheld information from the consumer. I was concerned with getting my balance paid off since I paid extra to have Gap Insurance for those unfortunate incidences that may occur in life. Out of all the questions I asked to insure that they claim was paid off by Gap Insurance, I don't understand why this information was withheld when as a consumer.

I spoke to XXXX in the Insurance Department at Credit Acceptance who is a Senior Specialist on XX/XX/21 at XXXX Central Time. She advised that the only notes that it shows on my Account is that I called regarding Gap Insurance and does not have any additional notes. I advised her that I was not advised by any of the representatives that Gap doesn't cover past due payments that were accrued prior to Gap Closing. I advised that I find that the representatives are unprofessional and do the minimal work and that is why I am having this dilemma on this account. I requested to speak to another Supervisor due to her condescending tone and nature. I spoke to XXXX who is a Senior Specialist in the Insurance Department who advised that I still had a balance on the account. When asked what the remaining balance on the account was, he advised he could not give me that information as the account had been transferred to a different department. This is just one of the instances of how Credit Acceptance Representatives manage Customers Accounts and why I and so many other consumers have fell victim to the Unfair Practices at Credit Acceptance. I spoke to XXXX in the Collection Department at Credit Acceptance as well who also would not make any adjustment to the account based upon the term. 

I believe that Credit Acceptance is taking advantage of people who have less that perfect credit. I am not sure of the State or Federal Statues regarding financing individuals but somehow this company is getting away with financing individuals at almost 50 % - 65 % of the vehicle that they purchased. I know it seems like they have dotted all their i 's and crossed all their t 's, but as a consumer how our we getting sucked into these type of situations without it being required to put the information in writing that the Consumer can understand versus a whole stack of paper the dealer wants you to read through during closing? I believe there should be some type of class action lawsuit where consumers who have experienced this same type of horror with Credit Acceptance can have some justice. 

My experience was around XXXX and not only was I a great customer who made all my payments on-time prior to someone hitting my car, but I was a customer who wanted to ensure that I did everything possible to ensure this loan was paid off. I paid XXXX in 2 years and they still carried over the APR on the loan for the 5 year term. How are they able to charge APR for 5 years for a contract that only went 2.5 years? There is something very wrong with Credit Acceptance business practices and I would like to know how they are able to do business where they are able to charge twice for a car and collect the full APR on a contract without fulfilling the entire contract?

Company response to consumer: Closed with explanation