Consumer complaint received 2022-04-07
Company: CREDIT ACCEPTANCE CORPORATION
State: PA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Struggling to pay your loan
Sub-issue: Denied request to lower payments

Complaint:
I purchased a used vehicle in XXXX from an auto dealership in XXXX, NJ. At the time, I was in need of a reliable vehicle and I was eager to make a deal for a XXXX XXXX XXXX. My XXXX score wasn't the greatest so my financing options were limited. I obtained an auto from Credit Acceptance Corporation. I've never heard of the company at the time I purchased my XXXX  and I was hesitant to sign the paperwork as I was feeling rushed but Credit Acceptance assured my that if I make only a few on-time payments they would have refinance options available to me because my rate is in the high 20 percent range. 

I made on-time payments in the beginning of my loan term but then COVID hit and that's when my financial situation became impacted. I reached out to Credit Acceptance several times for help and they were rude, ignorant, judgmental, and not willing to help me at all and basically said, " oh well, we'll just repossess your vehicle if you can't pay now. '' I also felt intimidated every time I had to call them because they would harass me 100 's of times a week via cell phone. Whenever I called this company I felt I was being discriminated based upon the sound of my voice and the letters of my name. Basically, because I'm a white male I feel I was being treated unfairly and denied COVID protection and payment options to resolve my past due balance. Plus, this vehicle has been in the repair shop for over 6 months because there has been significant mechanical issues which estimate to be over $ 5k. 

Today, I spoke with a supervisor at Credit Acceptance and he said either I pay or they are coming to take my XXXX. I can not afford {$500.00} a month for a XXXX loan balance. The rate is astronomical and I shouldn't have been approved because an interest rate so high only sets people up for failure if unforeseen circumstances arise ; this company should want to help people who try to do the right thing but instead they rather jeopardize a person 's livelihood based on their personal profile. 

I feel like I was taken advantage by Credit Acceptance, especially considering I was forced to buy their warranty in order to obtain the auto loan. The warranty didn't cover a thing. The interest rate is unfair and they give their borrows no chance to succeed and offer no help when financial hardships happen. I can not refinance my loan due to the late payments on my Credit Acceptance account and my XXXX score. I can not even afford to get my XXXX from the repair shop because I don't have enough in the bank due to COVID wiping out my savings and taking away family members income which contribute to the household I live in. 

I may be forced to file bankruptcy due to this measly XXXX XXXX auto loan that has destroyed my credit. Credit Acceptance should be held accountable for predatory lending as they persuade uncertain borrowers into a finance nightmare all the while laughing in their face when they are behind on their loans because they know no help is available and the company earns more revenue and write offs by destroying a borrower rather than helping a borrower.

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