Consumer complaint received 2025-12-03 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: CREDIT ACCEPTANCE CORPORATION
State: NY

Complaint narrative:
I. SUMMARY OF VIOLATIONS AND NATURE OF THIS COMPLAINT I am submitting this formal complaint because Credit Acceptance Corporation ( CAC ) has repeatedly, knowingly, and willfully violated federal law, Uniform Commercial Code provisions governing negotiable instruments, federal securities law, consumer credit protections, constitutional rights, and civil rights statutes, resulting in severe financial harm, deprivation of rights under XXXX of law, and wrongful continued reporting and collection activity. 

CAC has refused to accept my lawful negotiable instrument ( XXXX ) tendered as full satisfaction of the account, refused to acknowledge payment made in full on XX/XX/year>, continued to demand further payment, continued to report the account inaccurately to credit bureaus, and wrongfully retained the vehicle after paymentcontinuing charges for over XXXX years, in direct violation of federal law. 

Furthermore, XXXX staff have made statements that XXXX XXXX Codes and federal payment laws do not apply, which is an admission of ignorance of federal statutes and an unlawful deprivation of my protected rights. 

These actions constitute fraud, misrepresentation, malfeasance, and deprivation of rights under XXXX of law, actionable under multiple federal statutes. 


-- - XXXX. FEDERAL STATUTES VIOLATED -- - 1. 31 U.S.C. 3123 Federal Payment Obligations ; Public Debt This statute requires that obligations of the United States are discharged upon payment and that lawful tender and negotiable instruments must be accepted when properly issued and presented. By refusing to accept my payment instrumenttendered in good faithCAC : Violated federal law by refusing a lawful discharge of debt Continued collection efforts despite payment Wrongfully asserted that federal payment statutes do not apply -- - 2. UCC Article 3 & 4 Negotiable Instruments, Holder Liability, Acceptance CAC violated : UCC 3-104 Definition of Negotiable Instrument My tendered instrument met the statutory definition of a negotiable instrument and therefore had to be accepted or dishonored following lawful UCC procedure , which CAC failed to do.

UCC 3-409 & 3-410 Acceptance of Instrument CAC refused acceptance without legal cause, constituting commercial dishonor.

UCC 3-603 Tender of Payment Upon tender, the obligation is discharged, and further collection is prohibited.

UCC 3-501 Notice of Dishonor CAC failed to issue lawful and timely notice of dishonor.

UCC 1-308 Reservation of Rights CAC violated my right to contract and make payment without waiving any legal rights.

UCC 3-505 & 4-302 Bank and Holder Accountability Holder institutions must process items faithfully and timely ; CAC did neither.

These violations constitute a breach of commercial law and a deprivation of rights, as UCC is adopted into state statutes and binding.

-- - 3. Truth in Lending Act ( TILA ) 15 U.S.C. 1605 ( Finance Charge Disclosure ) CAC violated TILA by : Hiding and misclassifying finance charges Accepting or treating portions of payments as securities or ledger transactions without proper disclosure Misrepresenting the true cost of credit Operating in a deceptive and predatory manner Failure to disclose finance charges under 1605 is a federal violation and constitutes fraudulent inducement and unlawful enrichment.

-- - 4. Civil Rights Violations 18 U.S.C. 241 & 242 ( Deprivation of Rights Under Color of Law ) CAC employees and agents, acting under corporate authority ( color of law ), violated : 18 U.S.C. 241 Conspiracy against rightsincluding knowingly refusing lawful payment, misrepresenting my rights, and continuing unlawful collection and reporting activity.

18 U.S.C. 242 Deprivation of rights under color of law, including : Denial of the right to make lawful payment Denial of the right to accurate credit reporting Unlawful seizure and retention of property ( the vehicle ) Continuing collections after discharge of the obligation False statements alleging federal law is inapplicable Violations of 241242 carry criminal penalties, including fines and imprisonment.

-- - 5. Fair Credit Reporting Act ( FCRA ) CAC falsely reported payment activity after the account was satisfied.

They : Removed the paid status and re-opened the account Continued negative reporting after discharge Ensured ongoing damage to my creditworthiness This is a willful violation actionable under 15 U.S.C. 1681n. 


-- - XXXX. Failure to Accept Payment in Full ( XX/XX/year> ) CAC accepted payment in full on or around XX/XX/year>, then : Reclassified the payment Removed the payment from my credit report Continued charging me thereafter Continued collection calls and letters Asserted the account will remain open despite payment This is fraudulent, unlawful, and a direct violation of federal payment statutes. 


-- - XXXX. Wrongful Repossession and Continuing Charges for Over XXXX Years After payment, CAC wrongfully took possession of the vehicle and continues to charge me. 
This constitutes : Conversion Fraudulent enrichment Breach of contract Civil rights violations XXXX violations CFPB violations TILA violations -- - XXXX. LEGAL RAMIFICATIONS Violations of XXXX Statutes Each violation carries civil and potentially criminal consequences. 

Deprivation of Rights 18 USC 241242 violations may result in : Civil liability Criminal prosecution Fines and imprisonment TILA Violations ( 15 USC 1605 ) CAC may be subject to : Mandatory restitution Statutory damages Actual damages Administrative penalties UCC Violations CAC exposed itself to claims of : Commercial dishonor Breach of fiduciary and holder obligations Civil damages FCRA Violations Under 15 USC 1681n and 1681o, CAC may be liable for : Actual damages Punitive damages Attorney fees 31 USC 3123 Violations Failure to accept lawful instruments can result in : Federal administrative penalties Regulatory enforcement Civil liability

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