Consumer complaint received 2025-11-21 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CREDIT ACCEPTANCE CORPORATION
State: MI

Complaint narrative:
Subject : Formal Complaint Regarding Predatory Lending, TILA Violations, and Deceptive Practices in Account # XXXX To the Consumer Financial Protection Bureau, I am filing this formal complaint against Credit Acceptance Corporation ( CAC ) regarding the above-referenced auto loan account. My complaint involves multiple serious issues, including : Predatory and unaffordable loan terms.

Violations of the Truth in Lending Act ( TILA ) through inaccurate disclosures.

Deceptive " loan packing '' by including an overpriced, optional service contract.

Misleading and inaccurate communication from CAC 's legal counsel intended to deceive me about my rights.

I have attempted to resolve these issues directly with CAC, but their response, from Legal Counsel XXXX XXXX, was deceptive and failed to address the core violations. I am now seeking the CFPB 's assistance and intervention. 

XXXX. Predatory, High-Cost Loan and Potential " Loan Packing '' The loan I was provided is characteristic of the predatory practices for which CAC has been repeatedly sanctioned. 

The loan was for a XXXX XXXX XXXX XXXX with XXXX miles. 
The " Cash Price '' of the vehicle was listed as {$20000.00}. 
Despite a {$3000.00} down payment, the " Amount Financed '' was {$20000.00}. 
The Total of Payments is {$34000.00}, with a Finance Charge of {$14000.00}, resulting in an APR of approximately 27.5 %. 

Furthermore, the loan was " packed '' with a {$1600.00} " Optional Extended Warranty or Service Contract '' for a 6-year-old, high-mileage vehicle. This is an exorbitant fee for a product of questionable value and significantly inflated the total debt I was forced to finance at this predatory interest rate. 

( See attached Exhibit A : Retail Installment Contract, Truth in Lending Disclosures, and Itemization of Amount Financed ) 2. Violations of the Truth in Lending Act ( TILA ) - Inaccurate Disclosures The " Itemization of Amount Financed '' in my contract contains a clear and material inaccuracy, violating TILA 's requirement for clear and accurate cost disclosures.

The contract states the " Cash Price '' is {$23000.00}. 
This figure is itemized as : Motor Vehicle ( {$20000.00} ) + Sales Tax ( {$1200.00} ) + Accessories ( {$0.00} ) = {$21000.00}. 
There is a discrepancy of {$1700.00} that is not accounted for. 

This mathematical error misrepresents the true cost of the vehicle and the nature of the financing, preventing me from having accurate information to make an informed financial decision. 

XXXX. Deceptive and Misleading Communication from CAC Legal Counsel In response to my initial dispute, I received a letter from XXXX XXXX, Legal Counsel in CAC 's Compliance Department. In this letter, he falsely stated that a " notice to cosigner '' granted CAC the right to report negative information to credit bureaus without prior notice. 

This is a gross misrepresentation of a " Notice to XXXX, '' which is a federally mandated disclosure designed to inform a cosigner of their liability, not to waive their rights under the Fair Credit Reporting Act ( FCRA ). This communication was a deliberate attempt to mislead me and deter me from pursuing a valid dispute. 

( See attached Exhibit B : Letter from XXXX XXXX of CAC ) 4. Pattern of Illegal Conduct by XXXX XXXX These issues are not isolated. They reflect a documented pattern of illegal conduct by CAC, as seen in : The XXXX Massachusetts Attorney General 's lawsuit and {$7.00} XXXX settlement for making unaffordable loans and creating a " repossession pipeline. '' The XXXX CFPB finding that CAC engaged in " illegal activities, '' including deceptive collection tactics. 
The XXXX XXXX DOJ {$27.00} XXXX settlement for securities fraud related to misrepresenting loan quality to investors. 

My loan and the subsequent deceptive communication are manifestations of this same corporate pattern of predatory lending and deception. 

Request for Relief I request that the CFPB investigate Credit Acceptance Corporation for these violations. Specifically, I ask that you require CAC to : 1. Permanently delete the late payment and any other negative reporting associated with this account from all three national credit bureaus.

2. Reform the loan terms to remove the illegally packed {$1600.00} service contract and its associated finance charges, and to provide an accurate, lawful accounting. 
3. Provide monetary compensation for the damages suffered due to these illegal practices.

Thank you for your attention to this serious matter. The attached documents support my claims.

Respectfully, Enclosures : Exhibit A : Retail Installment Contract ( Pages 1-2 ) Exhibit B : Letter from XXXX XXXX XXXX CAC Legal Counsel

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