Consumer complaint received 2025-11-06 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: CREDIT ACCEPTANCE CORPORATION
State: LA

Complaint narrative:
This complaint concerns multiple violations of federal and XXXX  consumer protection laws committed by Credit Acceptance Corporation and its XXXX XXXX XXXX XXXX XXXX XXXX, XXXX. 
These violations include failure to comply with a conditionalsale clause, late XXXX perfection, deceptive financing and addon practices, misrepresented Truth in Lending disclosures, and potential breach of an arbitration clause. 
The companys conduct caused financial loss, wrongful repossession, and ongoing damage to my credit history. 

XXXX. Contract Background Vehicle : XXXX XXXX XXXX Sale Date XXXX XXXX XXXX XXXX XXXX XXXX Seller : XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX : Credit Acceptance Corporation ( XXXX XXXX  ) Repossession : XXXX Title Issued XXXX XXXX XXXX XXXX XXXX XXXX XXXX days after the sale date XXXX. Conditional Sale Violation ( XXXX Rule Page XXXX of XXXX ) The contract clearly states : Your credit purchase shall be null and void and without effect should Credit Acceptance not agree to accept assignment within twenty-five ( XXXX ) days. Seller will immediately return to you all amounts you have paid. 

XXXX XXXX accepted or processed the assignment well beyond this XXXX limit proven by the XXXX  XXXX XXXX XXXX XXXX XXXX XXXX the title and lien were issued XXXX  days later ( XXXXXXXX XXXX XXXX XXXX XXXXXXXX ). 
This violates XXXX XXXX XXXXXXXX and constitutes a material breach making the entire credit sale void. 
By retaining payments and repossessing the vehicle despite the contracts nullification clause, XXXX XXXX violated XXXX XXXX, the Fair Credit Reporting Act XXXX ( b ), and the XXXX  XXXX XXXX XXXX XXXX XXXXXXXX. Untimely XXXX Perfection ( Title Filed XXXX Days After Sale Page XXXX Clause ) XXXX  XXXX ( XXXX XXXX. XXXX ( A ) ) requires a lender or dealer to deliver the title and XXXX recordation application within XXXX  days of sale. 
The XXXX and title were not perfected until XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX ( XXXX ) days late. 
This late perfection made the lien unperfected and unenforceable at the time of repossession. 
Under XXXX XXXX and XXXX  law XXXX repossessing or collecting under an unperfected lien constitutes wrongful conversion and bars any deficiency claim. 
XXXX XXXX therefore repossessed the vehicle without legal authority. 

XXXX. Misrepresentation of XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) Page XXXX lists XXXX optional add-on products : XXXX  Waiver {$930.00} Service Contract {$1200.00} The dealer represented that these were required to obtain financing, which was false. 
The contract fails to clearly disclose their optional nature as required by 15 U.S.C. 1638 ( a ) ( 2 ) ( B ), 12 C.F.R. 1026.18 ( n ), and XXXX XXXX  XXXX et seq. ( XXXX  ). 
These misrepresentations inflated the Amount Financed and Total of Payments, causing direct financial harm of at least {$2200.00} in overcharges. 
This is a deceptive financing practice under the FTC XXXX XXXX, Truth in Lending Act, and XXXX  Unfair Trade Practices Act. 

XXXX. Truth in Lending Disclosure Errors ( XXXX XXXX Page XXXX ) The TILA disclosure box on Page XXXX does not include the add-on charges in the finance-charge calculation, even though they were financed and represented as mandatory. 
This renders the stated APR and Finance Charge legally inaccurate, violating 15 U.S.C. 1638 ( a ) ( 4 ) and Regulation Z 1026.18 ( d ). 
Failure to accurately disclose the true cost of credit voids the creditors right to collect interest or enforce the security interest. 

XXXX. Prepayment Section ( Page XXXX of XXXX ) The Prepayment clause denies refund of unearned finance charges if the contract is prepaid or terminated early. 
This conflicts with 12 C.F.R. 1026.18 ( k ) and XXXX XXXX XXXX, which require refund of unearned interest upon prepayment or repossession. 
Credit Acceptance retained unearned finance charges after repossession, violating federal law and the XXXX  XXXX XXXXXXXX XXXX XXXX XXXX 

XXXX. Dealer Discount and Hidden Kickback ( Page XXXX Disclosure ) The contracts small-print disclosure states : XXXX XXXX will pay the dealer a portion of the amount you owe ( dealer discount or reserve ). 

This undisclosed dealer reserve inflates the finance rate beyond what XXXX XXXX would otherwise charge. 
Failure to disclose the dealers compensation source constitutes a hidden finance charge under TILA 1638 ( a ) and Regulation Z. 
This is also an unfair and deceptive practice under the FTC XXXX XXXX and XXXX. 

XXXX. Arbitration Clause ( Page XXXX of XXXX ) Unconscionable and Breached The arbitration clause waives class-action and jury rights but allows Credit Acceptance to repossess or sue outside of arbitration. 
This one-sided clause is unconscionable under 15 U.S.C. 1693l and LXXXX XXXX XXXX XXXX XXXX 
Moreover, if XXXX XXXX pursued collection or deficiency actions in court rather than arbitration, it breached its own contract and forfeited the arbitration defense.

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