Consumer complaint received 2025-10-24 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: CREDIT ACCEPTANCE CORPORATION
State: NJ

Complaint narrative:
Credit Acceptance Corp., is a private loan company, not registered to lend money as a bank, and therefore, conducts itself as a " renegade '' collection agency, by bullying it's customers after accepting applicants under false pretenses, by way of approving auto loans to bad credit borrowers! On or about XX/XX/XXXX, I purchased a vehicle through a dealer that advised me the only way the bank would approve the loan, I had to buy the service contract. I was manipulated to buy the contract! After XXXX year, I reviewed the docs and advised Credit Acceptance to void the service contract because it said that wasn't their condition. I called Credit Acceptance originally that day because I noticed the payments were not being posted to my principal balance, and rather posted as INTEREST ONLY... THIS IS PREDATORY LENDING, and CONSUMER FRAUD. FDIC 5600 states 'ONLY A BANK ' CAN LEND MONEY, and ( TILA ACT XXXX  ) Truth and Lending Act states that a lender can not manipulate CONSUMERS RIGHTS after purchases by it's bad lending practices, i.e. disclosing it's loan costs and procedures before purchase, allowing consumers to compare shop. I was denied my right! Further, " IF '' Credit Acceptance was a BANK, this lender is supposed to pay the Federal Reserve 'LENDER ' Application fees, before it lends money per FDIC . THIS LENDER HAS VIOLATED ( TILA ) BY NOT ADVISING THAT IT PROVIDES INTEREST ONLY LOANS, AND THAT IT IS NOT A REGISTERED AS A BANK! I WOULDN'T HAVE ACCEPTED THE LOAN OFFER, AS THE DEALER PRESENTED, CREDIT ACCEPTANCE CORP REQUIRED ME TO PURCHASE GAP INSURANCE, AND LATER POSTED PAYMENTS TO THE LOAN AS INTEREST ONLY! THIS IS FRAUD. THIS ISSUE WAS NEVER ADDRESSED IN THE PREVIOUS COMPLAINTS! THE ANNUAL PERCENTAGE RATES, LOAN TERM, AND ASSOCIATED COSTS AND CHARGES, NOT AS LENDER PRACTICES TODAY! MY LOAN SHOULD HAVE DECREASED TO {$16000.00} AFTER THE ( GAP CONTRACT ) WAS REMOVED, INSTEAD IT IS STILL CALCULATED IN THE ORIGINAL LOAN AMOUNT AND I STILL PAY AN INTEREST ONLY LOAN, WHICH I NEVER WAS ADVISED OF. THIS IS FRAUD AND PREDATORY LENDING. CREDIT ACCEPTANCE REPORTS MY LOAN AS LATE, WHEN IN FACT, IT POSTS MY PAYMENTS TO INTEREST AMOUNTS AND DECEIVES IT'S BORROWERS AS IF IT'S BEING APPLIED TO PRINCIPAL BALANCE! CREDIT ACCEPTANCE PROVIDED THIS OFFICE WITH A PAYMENT LEDGER SHOWING IT APPLIED A {$480.00} payment as {$280.00} in interest and then reported as a late payment, when I pay biweekly. When my vehicle was repossessed, I owed {$860.00}, XXXX months behind! I paid it to repo garage in XX/XX/XXXX, and since Credit Acceptance has posted my account owing arrears of {$2000.00}. This is fraud, as I was trying to get a loan to pay off my vehicle, but denied because Credit Acceptance, now has my account as almost ( 1 year late ) because it takes my payments and apply as interests only! This is fraudulent activity and predatory lending practices, in order to keep me in its CONTRACT!

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 non-monetary relief