Consumer complaint received 2024-06-22
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: CREDIT ACCEPTANCE CORPORATION (VA)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX, VA XXXX XX/XX/year> Credit Acceptance Corporation XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX Account number : XXXX Subject : Formal Dispute Regarding TILA Violation and Request for Compensation and Credit Report Adjustment To Whom It May Concern, I am writing to formally dispute the loan agreement I entered into with Credit Acceptance Corporation. After careful review, I have discovered significant discrepancies and a lack of transparency regarding the true cost of credit, which constitutes a violation of the Truth in Lending Act ( TILA ).

Specifically, I believe that Credit Acceptance Corporation failed to provide clear and accurate disclosures of the following key elements required under TILA : 1. **Annual Percentage Rate ( APR ) : ** The disclosed APR did not reflect the actual cost of the loan, leading to a misunderstanding of the true financial commitment.

2. **Finance Charges : ** There was insufficient disclosure of all finance charges associated with the loan, including hidden fees and additional costs that were not clearly itemized.

3. **Total Amount Financed : ** The amount financed was not accurately or clearly stated, making it difficult to understand the true amount borrowed and the associated costs.

4. **Payment Schedule : ** The repayment schedule, including the number, amount, and due dates of payments, was not clearly outlined, causing confusion about the repayment terms.

Due to these discrepancies, I have suffered financial damages, including but not limited to, higher than expected financial obligations, overpayment, and a negative impact on my credit report. I believe these damages are a direct result of Credit Acceptance Corporation 's failure to comply with TILA requirements.

As a remedy, I am requesting the following : 1. **Compensation for Damages : ** Compensation for all financial losses incurred as a result of the inaccurate and misleading loan disclosures. This includes any overpaid amounts and any additional costs directly resulting from this issue.

2. **Credit Report Adjustment : ** Removal of all negative remarks and any related adverse information reported by Credit Acceptance Corporation to the credit bureaus. The inaccurate information has significantly impacted my credit score and my ability to secure other forms of credit.

I kindly request that you respond to this dispute within 30 days of receipt of this letter. If these issues are not resolved promptly and satisfactorily, I will consider pursuing further action, including but not limited to filing a complaint with the Consumer Financial Protection Bureau ( CFPB ) and seeking legal recourse.

Please acknowledge receipt of this letter and provide a written response detailing the actions that will be taken to address this matter. 

Thank you for your prompt attention to this serious issue. I look forward to your timely response. 

Sincerely, XXXX XXXX I'm also referencing the same as CONSUMER FINANCIAL PROTECTION BUREAU and THE PEOPLE OF THE STATE OF NEW YORK, by XXXX XXXX, Attorney General of the State of New York, Plaintiffs, v.CREDIT ACCEPTANCE CORPORATION, Defendant.

Case No. 23 Civ. 0038