Consumer complaint received 2026-07-16 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Struggling to pay your loan — Denied request to lower payments
Company: CREDIT ACCEPTANCE CORPORATION
State: PA

Complaint narrative:
Consumer Financial Protection Bureau Complaint I am requesting the CFPB investigate what I believe to be a predatory auto loan and unfair lending practices related to my vehicle financing. I believe I was placed into a loan that was designed to keep me in debt while financing a vehicle that was worth substantially less than what I was charged. The vehicle is a XXXX XXXX XXXX, financed through Credit Acceptance after being purchased from XXXX XXXX. From the beginning, this transaction was financially unreasonable. The vehicle 's advertised purchase price was approximately {$11000.00}, yet after warranties, fees, and financed add-ons, my total financed amount exceeded {$16000.00}. I also made a {$2000.00} down payment, yet despite making payments for approximately three years, my loan balance barely decreased and, in some periods, actually increased because nearly every payment was applied to interest instead of principal. The interest rate on my loan is approximately 20.5 %, which is extraordinarily high considering the age and value of the vehicle. I believe I was placed into a loan that the lender knew would be nearly impossible to repay. To make matters worse, the vehicle has now suffered catastrophic mechanical failures, including : - Engine failure - Water pump failure - Failed catalytic converters The vehicle is no longer drivable. Despite the vehicle becoming unusable, I continued making payments in an effort to protect my credit. However, my balance has continued increasing daily due to interest. My balance increased from approximately {$8600.00} to over {$8800.00} even while I was attempting to remain current. I have now paid thousands of dollars toward this loan and still owe nearly the same amount as years ago. This demonstrates that the structure of this loan primarily benefited the lender while leaving me with almost no equity despite years of payments. I also believe I was sold products and add-ons that did not provide meaningful value, including warranties and other financed products that significantly increased my loan amount. These products dramatically inflated the amount financed beyond the actual value of the vehicle. Because of the vehicle 's age, mileage, high interest rate, and loan balance, refinancing has been impossible. I have effectively been trapped in this loan. I have contacted both the dealership and the finance company seeking assistance, including requesting settlement options or reasonable alternatives due to the catastrophic mechanical failure. Instead of offering meaningful assistance, I was essentially told no reasonable options were available. The result is that I have paid thousands of dollars for a vehicle that is now worthless, while still owing thousands more. I believe this is the exact type of lending practice that consumer protection laws are intended to prevent. I respectfully ask the CFPB to investigate whether the lender and dealership engaged in unfair, deceptive, or abusive acts or practices, including but not limited to : - Financing a vehicle for substantially more than its actual market value. - Structuring a loan with an excessively high interest rate that prevented meaningful reduction of the principal balance. - Financing warranties and additional products that significantly inflated the loan amount. - Failing to ensure the loan was reasonably affordable. - Leaving me trapped in negative equity with no realistic ability to refinance or escape the loan. - Refusing to provide reasonable loss mitigation or settlement options after the vehicle suffered catastrophic mechanical failure. As a consumer, I believe I was set up for financial failure rather than successful repayment. I respectfully request that the CFPB require the lender to fully review this account and provide appropriate relief, including : - A complete audit and accounting of all payments made and how they were applied. - Investigation into whether the financed amount exceeded the vehicle 's true market value. - Review of all financed add-on products and warranties. - Elimination or substantial reduction of the remaining balance. - Correction of any negative credit reporting related to this account while the dispute is under investigation. - Any additional relief the CFPB determines is appropriate after reviewing the facts. I entered this loan believing I was purchasing reliable transportation. Instead, I have spent years paying mostly interest on a vehicle that is now inoperable, while remaining burdened by thousands of dollars in debt. I respectfully request your assistance in investigating these lending practices and providing appropriate consumer protection. The lender and dealership have repeatedly responded to my concerns by stating, in essence, " You signed the contract, '' implying that my signature alone excuses every aspect of this transaction. I strongly disagree. A consumer 's signature should not shield a lender or dealership from scrutiny if the transaction itself was structured in a way that was unfair, deceptive, or financially devastating. Simply obtaining a signature does not relieve a financial institution of its responsibility to conduct business fairly or to ensure consumers fully understand the true financial consequences of the loan they are entering. No reasonable consumer, had they genuinely understood that they would pay thousands of dollars over several years while barely reducing the principal balance, owe substantially more than the vehicle 's actual value, become trapped in a loan that could not realistically be refinanced, and still owe thousands of dollars after the vehicle became mechanically worthless, would knowingly agree to those terms. The dealership 's position appears to be that because paperwork was signed, no further responsibility exists. They have even pointed to language stating that I understood I could not later rescind or challenge the agreement. I believe this ignores the larger issue. Consumer protection laws exist because a signature alone does not automatically make a transaction fair or lawful. If that were true, there would be no purpose for laws prohibiting unfair, deceptive, or abusive acts or practices. My complaint is not that I signed paperwork. My complaint is that I believe I was placed into a loan that was designed to benefit the lender regardless of whether I could realistically succeed financially. The structure of this loan, the excessive interest rate, the inflated financed amount, the financed add-on products, and the fact that years of payments resulted in almost no reduction of my principal created an outcome that I could not reasonably have understood or anticipated. I respectfully ask that this complaint be evaluated based on the fairness of the transaction itselfnot solely on the existence of my signature. A signature should reflect informed consent, not serve as a blanket waiver of a consumer 's right to challenge lending practices that may have been unfair, deceptive, or abusive.

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