Consumer complaint received 2025-04-05 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: American Credit Acceptance, LLC
State: MD

Complaint narrative:
American Credit Acceptance, LLCCustomer Experience XXXX XXXX XXXX XXXX, SC XXXX Re : Formal Complaint and Notification of Violations Related to Predatory Lending Practices Dear American Credit Acceptance , LLC ( " ACA '' ), This correspondence serves as formal notification regarding predatory lending practices, unfair and deceptive business practices, and violations of both Federal and Maryland state laws committed by ACA in relation to the financing of a 2021 XXXXXXXX XXXX, XXXX : XXXX. 

ACA knowingly provided financing under predatory and exploitative terms by charging an exorbitantly high Annual Percentage Rate ( APR ) of 24 %, despite full awareness of my financial circumstances, including low creditworthiness and modest income. ACA specifically requested my pay stubs and income documentation, thus fully cognizant of my limited capacity to sustain the excessively high monthly payment of {$490.00}. Despite this knowledge, ACA proceeded with predatory pricing, unfairly leveraging my financial vulnerabilities.

During the initial financing process, I was neither informed nor advised directly by ACA regarding critical contract terms, specifically the 24 % APR, total finance charge ( {$17000.00} ), monthly payment obligations, or the overall contract pricing. Rather, ACA conducted substantive loan negotiations exclusively with a representative from Enterprise XXXX XXXX of XXXX, XXXX, while limiting direct communication with me solely to income verification procedures.

ACA 's intentional omission of direct disclosure of financing terms constitutes violations of the Federal Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq., and Regulation Z, 12 CFR Part 226. Additionally, ACA has engaged in practices that breach the Equal Credit Opportunity Act ( ECOA ), 15 U.S.C. 1691 et seq., by establishing loan conditions based explic
itly on my financial vulnerability, income levels, and credit history.

The financing agreement includes an exorbitantly high Annual Percentage Rate ( APR ) of 24 %, resulting in a disproportionate Finance Charge totaling {$17000.00}, significantly exceeding reasonable and customary charges for vehicle financing, especially considering the used rental status, high mileage ( over XXXX miles ), and depreciated value of the vehicle. The total payment after interest, as specified in the contract, amounts to {$35000.00}, with a total sale price of {$36000.00} ( including the initial down payment of {$500.00} ). Notably, this vehicle was worth significantly lessestimated under {$12000.00} at the time of purchasedemonstrating predatory pricing practices. 

To date, I have paid {$6400.00} toward this loan. Alarmingly, only {$1500.00} has been credited to the principal, with an excessive amount of {$4800.00} applied toward interest. This demonstrates a predatory and financially unsustainable arrangement, with interest accruing daily based upon the excessively high APR and remaining principal balance, primarily benefiting ACA at my detriment.

During the pre-funding call, ACA misrepresented facts by stating I expressed no concerns about the loan terms. Crucially, the interest rate, monthly payment, and other key contractual terms were never directly disclosed or negotiated with me. Instead, these critical terms were discussed between ACA and an Enterprise representative, effectively excluding me from the critical elements of the loan negotiation process. My direct involvement was limited to verifying personal income and providing pay stub documentation, which ACA used explicitly to justify the excessively high interest rate and monthly payment.

This matter has already been reported with substantial supporting evidence to both the Federal Trade Commission ( FTC ) and the Office of the Maryland Attorney General, who are actively reviewing the legitimacy of the claims presented herein. ACAs assertion to the Consumer Financial Protection Bureau ( CFPB ) that it has not been involved in predatory lending practices or lawsuits is categorically false, as there is documented evidence of multiple consumer complaints and legal actions involving ACAs lending practices.

Additionally, ACA has failed to resolve or address this issue directly with me, despite being notified over 30 days ago. They have made no attempts at resolution, nor provided resources or assistance to address my serious financial concerns. This lack of responsiveness violates consumer lending standards for fair and timely dispute resolution as established by the Consumer Financial Protection Bureau, specifically under the Fair Debt Collection Practices Act ( FDCPA ), the Truth in Lending Act ( TILA ), Regulation Z, and Maryland 's Consumer Protection Act ( MD Code, Commercial Law 13-301 et seq. ).

ACAs conduct clearly violates numerous consumer protection statutes, including but not limited to : Federal Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq., and Regulation Z, requiring accurate disclosure and transparency in credit terms ; XXXX XXXX XXXX XXXX XXXX  Code, Commercial Law 13-301 et seq., prohibiting unfair, deceptive, abusive, and predatory lending practices ; Maryland XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) XXXX MD XXXX, Commercial Law XXXX et seq., concerning fair lending standards ; Federal Trade Commission Act ( FTC Act ), 15 U.S.C. 45 ( a ), prohibiting unfair and deceptive trade practices ; Equal Credit Opportunity Act ( ECOA ), 15 U.S.C. 1691 et seq., relating to discriminatory lending practices.

Furthermore, this transaction constitutes the knowing sale and financing of a vehicle considered a " lemon, '' violating im
plied warranties under Maryland 's Lemon Law, MD Code, Commercial Law 14-1501 et seq., and the Magnuson-Moss Warranty Act, 15 U.S.C. 2301 et seq.

Company response to consumer: Closed with explanation