Consumer complaint received 2026-07-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: CREDIT ACCEPTANCE CORPORATION
State: MS

Complaint narrative:
On XX/XX/XXXX, I purchased a XXXX XXXX XXXX ( VIN : XXXX ) from XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX, TN XXXX, financed through Credit Acceptance Corporation under Account # XXXX. During the finance and contracting process, the Finance XXXX at XXXX XXXX XXXX XXXX explicitly and unambiguously told me that Credit Acceptance Corporation required the purchase of a Vehicle Service Contract ( XXXX ) as a condition of obtaining loan approval. I was told I could not get the loan without it. That statement was a deliberate lie. The XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Contract No. XXXX, costing {$3800.00} states in bold print on its face : " THE PURCHASE OF THIS CONTRACT IS NOT REQUIRED EITHER TO PURCHASE OR TO OBTAIN FINANCING FOR A MOTOR VEHICLE. '' XXXX XXXX 's own VSC selection disclosure document, which I signed, confirms my monthly payment is {$290.00} with the XXXX and would have been {$190.00} without it a fraudulently induced difference of {$92.00} per month over XXXX payments, totaling {$6000.00} in excess payments before compound interest. The {$3800.00} fraudulently added to my XXXX XXXX is now accruing interest at 17.49 % APR, increasing my total financial harm well beyond the face value of the XXXX. CREDIT ACCEPTANCE HAS FUNDED THE LOAN AND IS REFUSING TO PROVIDE RELIEF : Upon discovering this fraud, I immediately sent formal written demand letters to both XXXX XXXX XXXX XXXX and Credit Acceptance Corporation demanding : ( XXXX ) cancellation of XXXX Contract # XXXX ; ( XXXX ) a full {$3800.00} refund applied as a principal reduction to Account # XXXX ; and ( XXXX ) a corrected Truth in Lending disclosure and revised payment schedule. Credit Acceptance Corporation has since confirmed that the loan has already been funded and has refused to rescind the loan or issue a refund. This response is unacceptable and unlawful. Under the FTC Trade Regulation Rule on Preservation of Consumers ' Claims and Defenses, XXXX C.F.R. XXXX ( the " Holder Rule '' ), Credit Acceptance Corporation as assignee of my Retail Installment Contract is fully subject to all claims and defenses I have against the selling dealer. The fact that XXXX XXXX has already funded the loan does not extinguish my rights it makes XXXX XXXX directly and independently liable for the dealer 's fraud. FEDERAL LAWS VIOLATED : FTC XXXX, XXXX U.S.C. XXXX The dealer 's misrepresentation that the XXXX was lender-required constitutes an unfair and deceptive act and practice. XXXX XXXX, as Holder, is equally liable. FTC Combating Auto Retail Scams ( CARS ) Rule, XXXX C.F.R. Part XXXX The dealer charged for an optional add-on without my informed, lawful consent by misrepresenting it as mandatory. XXXX XXXX funded a contract containing this fraudulent charge. Truth in Lending Act ( XXXX ), XXXX XXXX. XXXX/ Regulation Z, XXXX C.F.R. Part XXXX My Amount Financed of {$12000.00} and resulting payment schedule are materially inaccurate because {$3800.00} was added through fraud. The XXXX disclosures I signed are therefore invalid and must be corrected. FTC XXXX XXXX, XXXX C.F.R. XXXX Credit Acceptance Corporation, as holder of my consumer credit contract, is subject to all claims and defenses I assert against XXXX XXXX XXXX XXXX. ADDITIONAL VEHICLE DEFECTS : The vehicle was also sold with pre-existing, undisclosed defects : ( XXXX ) non-functional TPMS sensors on the right front and right rear positions, potentially violating FMVSS No. XXXX ( XXXX C.F.R. XXXX ) ; and ( XXXX ) a pre-existing mechanical condition causing the Check Engine light to illuminate approximately XXXX miles after purchase. These defects further void the dealer 's " As-Is '' disclaimer under Tennessee law and further reduce the value of the vehicle I was fraudulently induced to finance. RELIEF REQUESTED FROM CFPB : I request that the CFPB : ( XXXX ) require Credit Acceptance Corporation to apply a {$3800.00} principal reduction to Account # XXXX immediately ; ( XXXX ) require XXXX XXXX to issue a corrected TILA disclosure and revised payment schedule reducing my monthly payment to {$190.00} ; ( XXXX ) investigate Credit Acceptance Corporation 's role in funding a contract containing a fraudulently-induced add-on charge ; ( XXXX ) investigate US Auto Motors XXXX XXXX XXXX XXXX XXXX ; ( XXXX ) order all accrued interest on the fraudulent {$3800.00} charge to be waived ; and ( XXXX ) ensure no negative credit reporting occurs on my account related to the disputed amount during the pendency of this matter, pursuant to my rights under the Fair Credit Reporting Act, XXXX U.S.C. 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