Consumer complaint received 2025-08-18 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Repossession — Deficiency balance after repossession
Company: CREDIT ACCEPTANCE CORPORATION
State: NY

Complaint narrative:
On or about XX/XX/year>, my vehicle was impounded by the City of New York and subsequently held at XXXX XXXX XXXX. When I contacted the impound lot to recover the vehicle, I was informed that I was no longer the legal owner, that a XXXX was in place, and that the vehicle was subject to a {$6000.00} charge due to prolonged storage. Despite this, I was denied access and instructed to contact the lienholder, Credit Acceptance Corporation.

Credit Acceptance was made aware of the impoundment and the circumstances surrounding the vehicle. However, instead of initiating recovery or fulfilling their obligations as a secured party under UCC 9-611 ( notification prior to disposition of collateral ), they declined to act. Credit Acceptance made an internal decision not to retrieve the vehicle, citing the cost of recovery as non-beneficial to their financial interest. They failed to notify me of any transfer of ownership, title change, or vehicle disposition. They further failed to provide a Notice of Sale, transfer documentation, or any written proof that the vehicle was sold through lawful repossession procedures. 

Instead, the vehicle was treated as abandoned without formal notice to me, and a third party assumed ownership through a mechanics lien or similar state action. Despite relinquishing all control and recovering no proceeds, Credit Acceptance continues to report a full deficiency balance of over {$23000.00} to consumer credit reporting agencies. They are now offering a {$4000.00} settlement with a 90-day repayment term, which still accrues interest, but refuse to explain how that number was calculated, nor do they provide flexibility given the hardship.

Throughout this process, Credit Acceptance repeatedly advised me to contact the state for proof of sale, registration, or title transferdespite being the legal lienholder and party responsible for managing the asset under the contract. They have not produced any documentation supporting the validity of the deficiency claim or any evidence that I was properly notified in writing as required by law. 

In conclusion, I believe Credit Acceptance : Failed to comply with the XXXX and consumer notification laws ( e.g., no Notice of Sale ) Is improperly reporting a full deficiency balance after relinquishing the vehicle without disposition Is denying their obligation to recover or document the sale of the vehicle Is shifting responsibility to me to locate the vehicle and state title history, despite being the secured party Continues to report inaccurate or unverifiable account information to the credit bureaus in violation of the Fair Credit Reporting Act ( FCRA ) I am requesting that the Consumer Financial Protection Bureau investigate Credit Acceptances handling of this matter, and that the full deficiency balance be removed, or the settlement offer extended in good faith under hardship consideration.

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