Consumer complaint received 2025-11-15 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: CREDIT ACCEPTANCE CORPORATION
State: NY

Complaint narrative:
CFPB Complaint Credit Acceptance Corporation Category : Auto Loan Sub-Issues : Incorrect information, Unfair practices, Deceptive sales, Mechanical defect not disclosed WHAT HAPPENED ( STATEMENT TO CFPB ) I am filing this complaint because Credit Acceptance Corporation financed a vehicle for me after the dealership ( XXXX XXXX XXXX XXXX ) failed to disclose serious mechanical defects. Credit Acceptance is refusing to acknowledge the dealer misconduct, the misrepresented costs, and the unfair terms of the loan. 

When I purchased the vehicle, a knocking sound was present on day XXXX, but the dealer acted as if it was normal. The issue progressively got worse, and within about XXXX years the engine had to be completely replaced. 

The dealership told me the engine alone cost {$5100.00}, but when I looked up the part number, the engine actually costs approximately {$2100.00}. I believe the dealership misrepresented repair costs, and Credit Acceptance financed the loan without proper disclosures, resulting in excessive charges and misleading information. 

My warranty company ( XXXX ) confirmed the engine had to be replaced, proving the defect existed from the start. I maintain regular maintenance and did not cause the problem. The vehicle clearly had a pre-existing issue. 

The pricing and disclosures on the contract were confusing, inflated, and not explained properly at the dealership. I did not understand that the true cost of the vehicle would be so high, nor was the mechanical issue disclosed at the time of sale. 

Credit Acceptance is already the subject of a lawsuit by the CFPB and the New York Attorney General for hiding true loan costs and placing borrowers into high-risk loans. My experience appears consistent with the same practices described in that lawsuit. 

I believe this loan was structured in a deceptive and predatory manner. I also believe the dealership misrepresented the condition of the vehicle and repair costs, and Credit Acceptance did not properly verify the accuracy of the contract, the disclosures, or the condition of the vehicle before approving the loan. 

I am requesting a full review of my account and the dealerships actions. 

WHAT I WANT CREDIT ACCEPTANCE TO DO XXXX. A full account investigation XXXX. A review of the dealerships failure to disclose mechanical defects XXXX. A review of the misrepresented engine cost XXXX. A review of the contract disclosures XXXX. To be released from this loan due to the undisclosed defect and misrepresentation XXXX. Reimbursement of payments made if the contract is rescinded XXXX. Any negative credit reporting removed due to the ongoing investigation I can provide the following documentation upon request : - Engine replacement records - Warranty documentation - Dealer cost quote vs real engine price - The original purchase contract - All repair history

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