Consumer complaint received 2025-12-27 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: CREDIT ACCEPTANCE CORPORATION
State: IL

Complaint narrative:
Consumer Financial Protection Bureau Formal Complaint Regarding Post-Bankruptcy Credit Reporting Credit Acceptance Corporation This complaint is submitted to formally notify the Consumer Financial Protection Bureau of ongoing and unlawful credit reporting by Credit Acceptance Corporation following the discharge of a XXXX XXXX bankruptcy. The continued reporting of this debt violates federal bankruptcy law, the Fair Credit Reporting Act ( FCRA ), and applicable provisions of the Fair Debt Collection Practices Act ( FDCPA ). Despite the legal extinguishment of personal liability through bankruptcy discharge, Credit Acceptance Corporation continues to furnish inaccurate and misleading information to consumer reporting agencies, resulting in ongoing consumer harm. 

Statement of Facts A XXXX XXXX bankruptcy was filed XX/XX/year> and subsequently discharged XX/XX/year> by the United States Bankruptcy Court. The debt associated with Credit Acceptance Corporation was included in the bankruptcy and legally discharged. As a result of the discharge, all personal liability for the debt was eliminated by operation of law. 

Notwithstanding the discharge, Credit Acceptance Corporation continues to report the account to one or more consumer reporting agencies in a manner that inaccurately reflects an outstanding obligation. This reporting conveys that the debt remains collectible or legally enforceable, which is false, misleading, and materially inaccurate. The continued reporting has persisted post-discharge and after sufficient time for Credit Acceptance Corporation to update its records and reporting systems. 

Violations of Federal Law Bankruptcy Code Discharge Injunction Pursuant to 11 U.S.C. 524 ( a ) ( 2 ), a bankruptcy discharge operates as a permanent injunction against any act to collect, recover, or offset a discharged debt as a personal liability of the debtor. Courts have consistently held that post-discharge credit reporting that inaccurately reflects a balance due or an ongoing obligation constitutes an impermissible collection activity and a violation of the discharge injunction.

Credit reporting that misrepresents a discharged debt as owed exerts coercive pressure on the consumer and undermines the fresh start guaranteed by federal bankruptcy law.

Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ) Credit Acceptance Corporation, as a furnisher of credit information, is required to ensure that all information reported to consumer reporting agencies is accurate, complete, and not misleading. Reporting a discharged debt as owed or active violates the FCRAs accuracy requirements under 15 U.S.C. 1681s-2 ( a ).

Additionally, once a furnisher is aware or should reasonably be aware that information is inaccurate, it has a duty to delete the information. Failure to do so constitutes negligent or willful noncompliance with the FCRA and results in ongoing consumer harm.

Courts have held that reporting a discharged debt without proper notation or correction is materially misleading and actionable under the FCRA, particularly where the reporting creates the false impression of legal liability. 
Fair Debt Collection Practices Act ( 15 U.S.C. 1692 et seq. ) To the extent Credit Acceptance Corporation qualifies as a debt collector under the FDCPA, its conduct violates multiple provisions of the Act. Reporting a discharged debt as collectible constitutes a false, deceptive, or misleading representation in connection with the collection of a debt, in violation of 15 U.S.C. 1692e.

Further, communicating credit information that is known or should be known to be false, including the failure to accurately reflect a bankruptcy discharge, violates 15 U.S.C. 1692e ( 8 ). The FDCPA prohibits any conduct that misrepresents the legal status of a debt or attempts to collect an obligation that no longer exists.

The continued inaccurate reporting by Credit Acceptance Corporation has caused substantial and ongoing harm. This includes damage to credit reputation, suppressed credit scores, increased difficulty obtaining credit, higher borrowing costs, and emotional distress. The harm is compounded by the fact that the debt was legally discharged and should no longer appear in a manner suggesting liability or default.

The consumer respectfully requests that the Consumer Financial Protection Bureau take the following actions : Conduct a formal investigation into Credit Acceptance Corporations post-bankruptcy credit reporting practices.

Require Credit Acceptance Corporation to immediately delete all credit reporting associated with the discharged debt or, at minimum, correct the reporting to reflect a XXXX balance with no ongoing obligation. 

Ensure that Credit Acceptance Corporation ceases all reporting of discharged debts in the future.

Require Credit Acceptance Corporation to certify compliance with federal bankruptcy law and the Fair Credit Reporting Act.

The continued reporting of a discharged debt by Credit Acceptance Corporation is unlawful, misleading, and contrary to the protections afforded under federal law. Bankruptcy discharge is intended to provide a meaningful financial reset, free from continued creditor pressure or misrepresentation. Credit Acceptance Corporations actions undermine this protection and warrant immediate regulatory intervention. 

This complaint is submitted in good faith and under penalty of perjury, with the expectation that the CFPB will enforce applicable consumer protection laws and require corrective action. 

Sincerely, 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