Consumer complaint received 2025-02-18 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Notice to repossess
Company: CREDIT ACCEPTANCE CORPORATION
State: IN

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) Complaint Company Name : Credit Acceptance Corporation Subject : Breach of Contract, Unlawful Repossession, Failure to Honor Holder in Due Course Rights, and Improper Handling of Financial Instruments Complaint Details : 1. Breach of Contract & Unlawful Repossession My contract explicitly states that any legal action must be resolved through arbitration. Credit Acceptance Corporation has ignored this provision and proceeded with actions, including an unlawful repossession attempt.

As a Holder in Due Course, I exercised my rights under the UCC, yet Credit Acceptance has refused to acknowledge them and failed to respond within the legally required timeframe.

I have a lien recorded in New York and am finalizing another lien in Delaw
are, where Credit Acceptance is incorporated, to protect my legal interests.

2. Failure to Perfect a Security Interest A UCC-11 search revealed that Credit Acceptance has no perfected lien on my vehicle in the system, making their claim to the collateral legally invalid.

If Credit Acceptance asserts a security interest, I demand disclosure of any UCC filings that perfect their lien on my vehicle.

3. Improper Assignment & Transfer of Contract A UCC search in Delaware confirms that Credit Acceptance securitized my contract, transferring it to Credit Acceptance Auto Loan Trust 2024.

Per UCC 9-318 ( a ), once a promissory note is sold, the original creditor no longer retains a legal or equitable interest in the collateral ( vehicle ). Therefore, Credit Acceptance no longer has the legal standing to enforce repossession.

UCC 9-203 ( g ) codifies that the mortgage follows the note, meaning any security interest in my vehicle was transferred with the note. Credit Acceptance has relinquished its rights.

Within the first week of purchasing the vehicle, I revoked their security interest in writing, and they failed to respond within 21 days, making their claim unenforceable.

4. Failure to Report & Return Lawful Tender Credit Acceptance improperly securitized my receivable without disclosing the transaction or crediting my account accordingly.

A FOIA request has been submitted for all 1099 forms issued related to my account, as Credit Acceptance failed to disclose these transactions.

I have notified the Postmaster General regarding the unlawful tender taken without properly crediting my account.

5. IRS Audit & Pending Investigation The IRS has received my documentation for an audit, including IRS Form 2848 to verify my authority in this matter.

My filings include Form 56, establishing my fiduciary position, and documentation of {$56000.00} owed to me from misreported financial activity.

Requested Resolution : 1. Cease all collection and repossession actions as the contract is under legal dispute and subject to arbitration.

2. Provide all UCC filings associated with my vehicle to verify the legal standing of Credit Acceptances lien.

3. Disclose all contract transfers and associated 1099 forms to determine how many times my contract has been sold or assigned.

4. Return any misappropriated funds or uncredited receivables from the securitization of my account.

5.remove the lien on my title & throw out the repo order Failure to comply will result in further legal escalation, including : Additional lien filings in relevant jurisdictions.

Escalation to state and federal agencies for financial fraud.

Further IRS audits into Credit Acceptances accounting practices.

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