Consumer complaint received 2025-03-24 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: CREDIT ACCEPTANCE CORPORATION
State: GA

Complaint narrative:
I sent the letter below after a failed response for information : " SUBJECT : Formal Dispute and Demand for Loan Discharge Due to Legal Violations Dear XXXX XXXX  Department, I am writing to formally dispute the legitimacy of the auto loan obligations currently listed on my credit report. 

Here is a listed on my concerns : The account shows as OPEN as of XX/XX/XXXX when in fact the vehicle was turned in to you in the month of XX/XX/XXXX. This was the timeframe in which the account should have been listed as CLOSED. 
There are LATE or MISSED PAYMENT REMARKS listed on my credit report beginning XX/XX/XXXX, the month in which the vehicle was returned. 
There is still an OPEN BALANCE showing on my credit report for this vehicle. Per standard finance and contracts rules and regulations, once the vehicle is returned, the SELLER first sells the vehicle at auction for a fair market value. They then are allowed to write the vehicle off as BAD DEBT on their corporate taxes and take a XXXX payment for the vehicle. This completely absolves me of any further financial obligations to a vehicle that has been paid for XXXX per contracts and finance rules and regulations. 

Additionally, the Fair Credit Reporting Act ( FCRA ) protects consumers from inaccurate or unfair credit reporting. Violations include : Inaccurate information : Creditors or credit reporting agencies ( CRAs ) may provide inaccurate or incomplete information about a consumer.

Failure to update information : CRAs may not update a consumer 's credit information after a XXXX or when a debt is XXXX. 
Improper use of information : Entities may obtain a consumer 's credit report without a permissible purpose.

Privacy violations : CRAs may violate a consumer 's privacy. 

If a consumer finds inaccurate information in their credit report, they can dispute it with the Credit Reporting Agencies and I am seeking your assistance at this time. Please consider this letter my formal written notice of dispute. Based on the laws that protect me and my credit via the FCRA, your agency must investigate this dispute within XXXX days and correct or delete any inaccurate information. Understanding also that the creditors do not get a XXXX  bite at the apple, I am seeking to have this account deleted permanently from my credit profile within the XXXX days as prescribed by law. 

Due to serious legal violations and breaches of federal laws such as the Fair Credit Reporting Act, I am seeking immediate resolution to this issue. I have been in contact with the Consumer Financial Protection Bureau as well as their legal advisors on the laws that were broken by placing this derogatory account on my credit. 

Additionally, the information above has been provided to the Consumer Financial Protect Bureau and the Report Number is XXXX 

I anticipate your prompt attention to this serious matter. 

Specifically, the complaint alleges : Credit Acceptance Corporation makes predatory loans to millions of financially vulnerable consumerXXXX XXXX loans carry exorbitant interest rates, are loaded with expensive add-on products, and saddle borrowers with debts that even XXXX  believes the borrowers often can not afford to repay in full. 
XXXX  sets interest rates for affiliated dealers, typically about 22 %, but those high rates often dont reflect how much consumers are really paying for a loan because XXXX business model pushes dealers to manipulate the prices of vehicles, hiding an additional cost of credit in the principal amount financed by the loan. 
XXXX created a complex algorithm to predict how much it will collect from consumers over the life of the loan- not just from monthly payments, but also from potential collection efforts, repossessions, auctions, and deficiency judgments if the consumer defaults. XXXX lending model is indifferent to a consumers ability to repay a loan in full. 
XXXX  uses projected collections to decide how much to pay its dealers. Dealers are incentivized to add products to consumer loans, like vehicle service contracts, and to sell cars at inflated prices to increase the dealers payout. XXXX turns a XXXX eye when dealers hide the add-on products in loan paperwork or fail to disclose to borrowers that add-on products are included in their loan agreements. 90 % of XXXX loans included a XXXX  approved add-on product, often adding thousands of dollars to the already inflated principal amounts. 
The true cost of credit is higher than what is disclosed on the XXXX loan agreements, so many loans actually exceed state usury caps. In New York, more than 84 % of loans exceeded the 25 % penal usury cap.

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