Consumer complaint received 2025-03-03 00:00:00
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: CREDIT ACCEPTANCE CORPORATION
State: NY

Complaint narrative:
CFPB XXXX XXXX Credit Acceptance Corporation Your Name : XXXX XXXX Your Address : XXXX XXXX  XXXX XXXX # XXXX City, XXXX, ZIP : XXXX, NY XXXX Phone Number : XXXX Email : XXXX Loan Account Number : XXXX Company Complaining About : Credit Acceptance Corporation Company Address : XXXX XXXX XXXX XXXX XXXX, XXXX, MI XXXX Date of Complaint : XXXX XXXX XXXX. Summary of the Complaint I am filing a formal complaint against Credit Acceptance Corporation ( CAC ) for multiple violations of federal consumer protection laws, including : 1. Lack of Authority to Collect No Ownership of Debt Credit Acceptance does not own my debt yet continues to collect payments under false pretenses. 

My auto loan was securitized into Credit Acceptance Auto Loan Trust 2024-3, meaning the loan was sold to investors, and CAC is no longer the true creditor. 

CAC has failed to provide legal documentation proving its standing to collect and has not disclosed whether it is acting as a servicer or creditor. 



2. Violations of the Truth in Lending Act ( TILA ) Non-Disclosure of Securitization CAC failed to disclose the securitization of my loan at origination, depriving me of material facts that would have influenced my decision to accept the loan terms.

The true cost of credit, hidden fees, and finance charges were not fully disclosed, in direct violation of TILA ( 15 U.S.C. 1601 et seq. ).

Had I been informed that my loan would be immediately sold to investors and that CAC was not retaining the financial risk, I would have negotiated for better loan terms or refused the loan.

3. Fraudulent Inducement & Inflated Loan Principal CAC, in collusion with the dealership, artificially inflated the vehicle price, leading to a higher loan balance than the actual market value.

By failing to disclose the true structure of the loan and its immediate securitization, CAC misled me into an unfair financial contract.

This constitutes fraudulent inducement, making the contract voidable.

4. Unfair and Deceptive Collection Practices No Legal Right to Enforce the Debt Since the loan was securitized and CAC no longer owns it, CAC has no standing to demand payment from me.

If CAC is merely a servicer for the trust, then it must prove it has been directed by the trustee ( XXXX XXXX  XXXX XXXX ) to collect on this loan. 

Otherwise, CAC is collecting on a debt it has no legal right to enforce. 



5. Demand for Principal & Interest Rate Reduction or Legal Action Given CACs failure to disclose securitization, fraudulent inducement, and lack of standing to collect, I demand the following : Immediate reduction of the loan principal to the fair market value of the vehicle.

Interest rate reduction to 4-5 % to correct the overinflated APR.

Full documentation proving CACs authority to collect, including a copy of the Sale & Servicing Agreement ( SSA ) with the trustee.

Correction of any inaccurate credit reporting.

If CAC fails to comply, I will pursue legal action for fraudulent inducement, violations of TILA, and unauthorized debt collection.

2. Supporting Documents Attached Loan Agreement & TILA Disclosure ( showing failure to disclose securitization ) Billing Statements ( proving overinflated loan balance ) Correspondence & Call Logs ( documenting unlawful collection practices ) Credit Reports ( highlighting inaccurate reporting of debt ownership ) 3. Request for CFPB Action I request that the CFPB launch an investigation into Credit Acceptance Corporations deceptive lending and collection practices and take enforcement action for : Failing to disclose securitization as a material fact ( TILA violation ) Attempting to collect on a debt it does not own ( lack of standing ) Fraudulent inducement and misrepresentation in loan origination Overinflating loan principal through hidden finance charges Since CAC has been penalized in the past for similar misconduct, I urge the CFPB to ensure that consumers like me receive fair treatment, transparency, and financial relief. 

I appreciate the CFPBs prompt attention to this matter. 

Sincerely, XXXX XXXX XXXX # XXXX

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