Consumer complaint received 2024-11-10
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: CREDIT ACCEPTANCE CORPORATION (IN)

Subject : Privacy Act Violations, Inaccurate Reporting, Predatory Lending, and Misrepresentation by Credit Acceptance Corporation and XXXX XXXX XXXX  Complaint Summary : I am filing this complaint against Credit Acceptance Corporation and XXXX XXXX XXXX  for multiple violations of my consumer rights. These include misrepresentation of contract terms, predatory lending, unfair and deceptive practices, and ongoing unauthorized reporting to credit bureaus despite a paid-off balance on the equitable side. The issues in question involve inflated pricing, undisclosed liens, and an incomplete vehicle history, among other serious concerns : 1. Violation of Privacy Rights and Ignoring Opt-Out Request : Under the Privacy Act, as a federally protected consumer, I formally opted out of all authorized disclosures under PART 1016 - Privacy of Consumer Financial Information ( Regulation P ). Despite my request, Credit Acceptance Corporation has disregarded my opt-out directive by continuing to report transaction history to credit bureaus without my consent, violating 12 CFR 1016.1. Credit Acceptance Corporation failed to provide an initial privacy notice per 12 CFR 1016.4, denying me the opportunity to prevent unauthorized disclosures. They have also violated
my rights under 12 USC 531 by failing to honor my opt-out notice or provide a clear method to prevent disclosure.

2. Misrepresentation of Contract Terms and Security Interest : Credit Acceptance Corporation has misrepresented the nature of the contract associated with this account. They claimed a security interest in the vehicle without filing a UCC-1 financing statement or establishing a lien to verify their interest. My search of the UCC records revealed no lien on the vehicle, indicating their security interest is unfounded.

I also provided full payment for the vehicle, effectively relinquishing any supposed security interest. This action directly contravenes Indiana Code Title 26, Article 1, Chapter 3.1, Section 602, which governs the correct handling of such Under Indiana UCC Sections 26-1-3.1-602 and 26-1-3.1-603, a party tendering payment on an instrument has the right to expect that : The account will be credited in full, or If dishonored, the negotiable instrument must be returned to the obligor in its original form. Credit Acceptances failure to meet either of these requirements has caused undue harm by retaining my receivables without crediting my account, in clear violation of these statutory provisions. Additionally, per CFR 433.2 and CFR 444.3, Credit Acceptances handling of this matter raises concerns under federal consumer protection laws concerning unfair or deceptive practices. Specifically, the improper processing of my payment as a check
rather than as a negotiable instrument which now results into a billing error 15 usc 1666b. Credit Acceptance Corporation continues to inaccurately report the account status to credit bureaus, violating the Truth in Lending Act ( TILA ) under 15 USC 1681 by failing to accurately report account status and security interests. 
XXXX. Predatory Lending and Inflated Pricing : The original bill of sale reveals that XXXXXXXX XXXX XXXX sold this vehicle to me at an inflated price of approximately {$18000.00}, while the market value was closer to {$11000.00}. The vehicle also had accident history and prior liens that were not disclosed at the time of sale, further reducing its value. 
This excessive pricing, combined with undisclosed defects and liens, constitutes predatory lending practices and a potential violation of TILA. Both Credit Acceptance Corporation and XXXX XXXX XXXX failed to disclose key information that would have impacted my purchase decision, including the true market value of the vehicle and its complete history.

4. Fraud and Misrepresentation by XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX  misrepresented the vehicles value and history, concealing information on prior accidents and liens that affect its resale value and my ownership rights. This failure to disclose critical details constitutes fraud and violates state and federal laws on fair market disclosure. Additionally, my down payment was not fully credited toward the vehicle purchase, raising further questions about their accounting practices and compliance with consumer protection laws.

5. Violation of Fair Credit Reporting Act ( FCRA ) and Obligations Under TILA and 15 USC 6802 : Under 15 USC 6802, Credit Acceptance Corporation has an obligation to respect my privacy rights and to provide an opt-out notice before disclosing personal information. They failed to notify me of my rights and continue to report inaccurately to the credit bureaus, violating the Fair Credit Reporting Act ( FCRA ) by misrepresenting my account status. 
Furthermore, they reported a late payment despite the fact that the account was fully paid on the equitable side. Given the lack of a valid security interest or lien, they lack grounds for this reporting, thereby infringing on my rights under both FCRA and TILA.

6. Organized Crime and Racketeering Concerns ( RICO ) : The pattern of conduct by both Credit Acceptance Corporation and XXXX XXXX XXXX, including inflated prices, hidden terms, fraudulent reporting, and disregard for consumer privacy, suggests a potential RICO ( Racketeer Influenced and Corrupt Organizations Act ) violation. This pattern of unfair and deceptive practices potentially points to an organized effort to defraud consumers through a combination of misrepresentation, overcharging, and unauthorized disclosures.

Requested Resolution : I request that the CFPB investigate Credit Acceptance Corporation and XXXX XXXX XXXX for : Failing to respect my opt-out rights and violating Privacy Act regulations by continuing to disclose my transaction history to credit bureaus. 
Violating TILA by misrepresenting the total cost of financing, inflating the vehicles price well above its market value, and not disclosing the vehicles accident history and prior liens. 
Engaging in predatory lending practices and failing to provide an accurate, complete account history. 
Reporting inaccurate information to the credit bureaus, including late payments and an improper security interest claim, in violation of FCRA requirements.

Possible racketeering practices under RICO by exhibiting a repeated pattern of fraudulent activity, misleading disclosures, and unfair treatment of consumers. 

I request that this account be removed from my credit report, or alternatively, corrected to reflect the accurate status of paid in full with no security interest. I also request that Credit Acceptance Corporation honor my opt-out directive and cease all unauthorized disclosures of my personal information. I further request a full investigation into XXXX XXXX XXXX and their predatory practices, which appear to have violated both state and federal consumer protection laws.