Consumer complaint received 2024-12-26 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Struggling to pay your loan — Denied request to lower payments
Company: CREDIT ACCEPTANCE CORPORATION
State: NY

Complaint narrative:
CAC claimed to help low-income New Yorkers purchase cars, but instead, drove them straight into debt, said New York Attorney General XXXX XXXX XXXX CAC steered hardworking New Yorkers onto a path of financial ruin by tricking them into unaffordable, high-interest auto loans while cutting backroom deals with dealers to increase their own profits. These predatory actions hurt innocent people and left them with mountains of debt. I thank the CFPB for their partnership to stop this harm and protect everyday New Yorkers. I was one of the many low-income New Yorkers who needed a car and didnt have enough to buy it on my own, I was only XXXX at the time a single mother who worked at the XXXX XXXX but barely affording to live. I went to XXXX XXXX dealership barely knowing anything about getting a car or even financing a car. I looked around at a few cars and was told Credit acceptance was willing to work with me although I didnt have enough credit according to them. After looking around at a few cars which they said they approved, I was told I could only get this one specific car which was a used XXXX XXXX XXXX in my head I didnt understand so I asked why is it that they approved me for multiple cars but I was only able to get this one specific car, I was told that is what the bank chose for me. Moving forward I still was not able to get it, so I was asked to put more money down and I would need a co signer at the time I was really desperate for a car, so my father who is XXXX and on XXXX who only gets paid once a month did it, which I told the salesperson I didnt think it would be a good idea because he doesnt work, they said it didnt matter so basically said do it anyway. Now again when signing paperwork they didnt go over much more than just made us sign paperwork so I really didnt get a chance to really see what I was signing. Moving forward I did get the car with a payment of XXXX a month, which I felt was a little high because again I am a single mother. A little after I received the car Covid happened so I ended up losing my job which caused me to fall behind in payments which I did notify credit acceptance, they paused payments but then later on resumed them, I fell behind so bad my car got repossessed XX/XX/XXXX, I was still out of a job then and did let credit acceptance know, they didnt try to work with me I was only told I had to make a payment before it was sold at the auction. I tried so hard to try and make a payment to get the car released, I ended up making the payment XX/XX/XXXX and getting the car released. At the moment when I did go to pick up my car from the auction my car was damaged, so I asked what happened they told me the company who repoed the car damaged it. Moving forward I notified credit acceptance and was told they have to do an investigation between the towing company and the auction. The investigation was very handled very poorly instead of them notifying me with how far they were in the investigation I had to keep calling and checking in and seeing what was going on because my car was damaged and I didnt cause the damage. Moving forward I did call in and was notified that it was the auction who damaged and was told I had to bring the car all the way back to XXXX XXXX where the auction was to get it repaired. I did notify credit acceptance that I did not feel comfortable bringing and leaving my car with them, when I was told by them when I first picked up my car that it was never them who caused the damage. Credit acceptance notified me that it was the only option they had for me. I had the car but was still facing financial hardship, trying to keep up with payment plans but it was hard because I was out of work, my car was repossessed again in XX/XX/XXXX, I notified credit acceptance of what I was going through they still did not work with me, I was told I had to make a payment to get the car released. I gained the money to release the car in XX/XX/XXXX, upon going to the auction where my car was I discovered my car was damaged even more then what It was. I called credit acceptance and notified them and was told thats how it was when they picked it up and I said I drove the car I know how it was. So again I was stuck with damages I did not cause to the car and credit acceptance did not help. Credit Acceptance ensured its own profits by providing loans without regard to whether borrowers could afford them. I was one who could not afford but was tricked into thinking I can by credit acceptance. When borrowers default on loans, it can lead to severe consequences, including wage garnishment and an inability to borrow money in the future. A default on an auto loan can also lead to the borrower losing their means of transportation, which can cause job loss and a further spiral of damaged credit and financial distress. I am currently in repossession status again with credit acceptance and Im just very stressed because I feel like I was tricked into this whole loan as a young single mother.

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