Consumer complaint received 2025-11-29 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: CREDIT ACCEPTANCE CORPORATION
State: NJ

Complaint narrative:
This is not a duplicate complaint, but a supplemental complaint. 
CFPB Supplemental Complaint Credit Acceptance Corporation Subject : Defective Credit Reporting, Commercially Unreasonable Auction Sale, Predatory Lending Indicators, and Ongoing Damaging Furnishing of Disputed Account To whom it may concern, This is a supplemental complaint regarding Credit Acceptance Corporation ( CAC ) and the way they handled the repossession, sale, and subsequent reporting of my auto loan account ( Account ending in XXXX ). 

I am disputing the accuracy, legality, and fairness of CACs actions under the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ) ( to the extent applicable ), and Uniform Commercial Code ( UCC Article 9 ) regarding disposition of collateral. I believe these actions also raise concerns of predatory lending and predatory collection practices. 

XXXX. Commercially Unreasonable Auction Price After Repossession The vehicle in question was a XXXX XXXX XXXX XXXX, with no mechanical or appearance issues at the time of repossession. 

Original loan amount : {$16000.00} ( opened XX/XX/XXXX ) Repossession date : XX/XX/XXXX Auction sale date : XX/XX/XXXX Auction sale price reported by CAC : {$5500.00} A XXXX XXXX XXXX of this age and condition does not reasonably sell for {$5500.00} in a commercially reasonable sale environment. 

Under UCC 9-610 ( b ), a secured party must dispose of collateral in a manner that is commercially reasonable regarding method, manner, time, place, and terms. 
A sale for only XXXX % of the original loan amount XXXX to XXXX months after purchase, with no documented damage, strongly suggests the vehicle was not sold : at fair market value, in a commercially reasonable manner, or with proper efforts to maximize proceeds as required. 

A creditor who conducts a commercially unreasonable sale is not entitled to claim a deficiency balance, which makes CACs continued interest accrual inappropriate. 

XXXX. Improper and Damaging Credit Reporting While in Dispute My credit reports ( XXXX XXXX XXXX ) show the account with the following serious issues : Status : Repossession with {$12000.00} past due as of XX/XX/XXXX Balance updated as recently as XX/XX/XXXX Large monthly interest accrual and balance changes Payment history showing continuous negative marks But no notice anywhere that this account is in dispute, despite my formal dispute This violates several FCRA obligations : FCRA 623 ( a ) ( 3 ) If a consumer disputes information furnished to a CRA, the furnisher must notify the CRAs that the account is in dispute. 

CAC has failed to do this. 

FCRA 623 ( a ) ( 1 ) ( A ) Furnishers may not report information they know or should know is inaccurate. 

Given : the questionable sale price unresolved dispute potential deficiency inaccuracy CAC continues reporting information whose accuracy is legitimately disputed. 

FCRA 623 ( a ) ( 2 ) Duty to correct and update CAC is required to update information to ensure it is complete and not misleading. 
Reporting active interest accrual on a deficiency derived from a potentially invalid or unreasonable sale is misleading. 

XXXX. Interest Accruing on an Invalid or Unreasonable Deficiency If a repossessed vehicle is not sold in a commercially reasonable manner, the creditor can not lawfully collect a deficiency balance under UCC protections adopted nationwide. 

CAC is continuing to : report the full deficiency, add interest, update the balance monthly, and damage my credit with ongoing negative marks. 

This constitutes unfair or deceptive acts or practices and appears to be a form of predatory collection behavior. 

XXXX. Potential Predatory Lending Indicators The facts raise concerns about : Inflated vehicle valuation at origination Loan terms not aligned with the true value of the vehicle Rapid negative equity despite no reported damage High interest and aggressive deficiency pursuit CACs well-documented history of regulatory scrutiny for abusive auto-loan practices These factors collectively suggest the loan itself may have been unfair, predatory, or unconscionable, and the resulting deficiency is tainted. 

XXXX. Required Action Requested Due to the inaccurate, incomplete, and misleading nature of CACs reporting along with the questionable legality of the alleged deficiency balance I request that the CFPB require immediate corrective action, including : XXXX. Immediate deletion of this account from all credit reports The account is defective, improperly reported, and based on a likely commercially unreasonable sale. 

XXXX. Cease all reporting of interest, balances, or updates No further negative reporting should occur while the accounts validity is unverified. 

XXXX. Require CAC to provide proof of a commercially reasonable sale Including : auction details, bids received, condition report, sale method, documentation showing how the {$5500.00} value was reached. 

XXXX. Require CAC to update all CRAs to show the account is formally disputed As required by FCRA 623 ( a ) ( 3 ). 

XXXX. Investigate CAC for violations of FCRA, FDCPA ( if applicable ), UCC Article 9, and unfair/deceptive practices Given the pattern of : disputed but uncorrected reporting, misleading credit updates, unreasonable collateral disposition. 

Conclusion I request the CFPBs assistance in resolving these issues. CACs actions are causing significant, ongoing credit harm, are not in compliance with federal credit reporting laws, and appear to violate repossession and deficiency standards. 

Thank you for your attention and investigation.

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