Date Received: 2023-07-16
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: CREDIT ACCEPTANCE CORPORATION is prohibited from reporting late payments on a consumer credit plan for and purposes 15 USC 1666B and according to to 15 usc 1681b ( a ) ( 2 ) In accordance with the written instructions of the consumer to whom it relates. and a consumer report does not include : report containing information solely as to transactions or experiences between the consumer and the person making the report ; 15 usc 16812 ( A ) ( i ) 15 USC 1681 Section 602 states I have the right to privac
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: NJ
Zip: 08302
Submitted Via: Web
Date Sent: 2023-07-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-15
Issue: Managing the loan or lease
Subissue: Problem with additional products or services purchased with the loan
Consumer Complaint: Closing its eyes to practices that harmed consumers : The company created financial incentives for dealers to add extra products to loans and then shrugged off whether customers were misled into thinking the add-on products were required. Add-on products, such as vehicle service contracts, are a profit center for Credit Acceptance. They represented about {$250.00} XXXX in revenue in XXXX alone. 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. This is not the only action targeting Credit Acceptance for violation of consumer financial protection laws. For example, last year, the Massachusetts Attorney General secured more than {$27.00} XXXX for thousands of families harmed by Credit Acceptance.Hiding the true cost of credit : Since XXXX, Credit Acceptances loan agreements nationwide have said that consumers would pay interest at an average 22 % APR. However, the true cost of credit offered is far higher than what borrowers are told. This is because Credit Acceptances business model pushes dealers to manipulate the prices of vehicles sold to Credit Acceptance borrowers, based on borrowers projected performance. XXXX then uses the projected collections to decide how much to pay its dealers. XXXX pays dealers less for loans with lower scores because they are riskier, and XXXX predicts it will collect less. Because XXXX sets the interest rate for the loan and that interest rate does not change based on borrower risk, XXXX lending model incentivizes dealers to sell cars at inflated prices, which increases the amount XXXX pays the dealer. 5. This means the principal amounts in XXXX loans are often artificially inflated and far exceed the amount XXXX expects to collect on the loan or has paid to its dealers. And because XXXX has shifted the cost of the credit into the principal amount instead of the interest rate, consumers do not know they are paying these hidden costs of credit to finance their vehicles. 12 U.S.C. 5531 ( a ) ,5536 ( a ) ( 1 ), 5536 ( a ) ( 3 ), THEY ARE IN VIOLATION by obscuring the cost of credit for auto loans and taking unreasonable advantage of consumers lack of understanding of the risk of default and the severity of the consequences, as well as their inability to protect their interests, and for providing substantial assistance to dealers, even though XXXX knew or should have known the dealers were misrepresenting the voluntary nature of add-on products. THEY JUST HAD A BIG LAWSUIT FOR A HIGH APR RATE AND THATS WHAT THEY DID TO ME MY APR IS XXXX, FINICANCE CHARGE IS WHAT I SUPOSED TO PAY FINCANCE CHARGE IS THE SUM OF ALL CHARGES ( ALL CHARGES ) ACCORDING TO THE LAW 15 U.S. Code 1605 - Determination of finance charge WHICH STATES Examples of charges which are included in the finance charge include any of the following types of charges which are applicable : ( 1 ) Interest, time price differential, and any amount payable under a point, discount, or other system or additional charges. ( 2 ) Service or carrying charge. ( 3 ) Loan fee, finders fee, or similar charge. ( 4 ) Fee for an investigation or credit report. ( 5 ) Premium or other charge for any guarantee or insurance protecting the creditor against the obligors default or other credit loss. ( 6 ) Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender ( for delivery to the broker ) whether such fees are paid in cash or financed.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: OH
Zip: 43228
Submitted Via: Web
Date Sent: 2023-08-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-16
Issue: Managing the loan or lease
Subissue: Problem with the interest rate
Consumer Complaint: This Loan was offered under false pretenses. I am writing to file a complaint regarding the exorbitant charges associated with my car loan credit acceptance, which has placed a significant financial burden on me and has negatively impacted both my credit report and personal life. I urge you to investigate this matter and take appropriate action to rectify the situation. I entered into an agreement with Credit Acceptance on a car loan on XX/XX/XXXX XXXX was sold a car for {$17000.00} and Charged a 22.99 % APR which turned my XXXX car into a {$31000.00}. Credit Acceptance as well as the dealership sold me a car that had faulty breaks. According to XXXX, the car had 3 recalls because of this issue. the car had 3 owners before me and was involved in several car accidents before me. I have taken the car to mechanics for the faulty breaks over 4 times. When buying this car I was not provided a car fax at the dealership which could have prevented all of this had I known. in XXXX because of this faulty break I was in a car crash that nearly took my life. I was unable to recover the car and till this day I am being over charged for a car that I no longer have, and I no longer know its whereabouts. I am also being charged late fee 's on this car. I believe I was taking advantage of not only by the dealership but also by Credit acceptance. I believe I am a victim of predatory lending which is Illegal in the state of NJ where I originally got the car from and in the state of new York where I live. The stress of constantly worrying about payments, which is constantly dropping my credit score, and experiencing a decline in my creditworthiness has taken a toll on my mental and emotional well-being. I am seeking your assistance in rectifying this unjust situation. I kindly request that you investigate the terms and conditions of my car loan agreement and take appropriate action against Credit Acceptance for their predatory lending practices. I believe that such practices not only exploit vulnerable consumers but also undermine the principles of fair lending and consumer protection. I kindly request the following actions be taken.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: NY
Zip: 11203
Submitted Via: Web
Date Sent: 2023-07-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-15
Issue: Getting a loan or lease
Subissue: Changes in terms mid-deal or after closing
Consumer Complaint: Changes in terms mid-deal or after closing Car went up XXXX XXXX XXXX after closing.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: MD
Zip: 21230
Submitted Via: Web
Date Sent: 2023-07-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-15
Issue: Managing the loan or lease
Subissue: Problem with the interest rate
Consumer Complaint: I signed my loan back in to XXXX not aware of the 23 % internet rate tagged onto my account. I fell onto hard times during XXXX and my late fees sky rocketed along with adding interest on the account. Now in XXXX I still owe a massive amount for a car that should have never had this much APR. I read that New York has an open case on XXXX after reviewing their practices with dealerships and consumers.
Company Response:
State: TX
Zip: 75149
Submitted Via: Web
Date Sent: 2023-07-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-14
Issue: Managing the loan or lease
Subissue: Problem with the interest rate
Consumer Complaint: Credit acceptance charges and interest rates make it impossible to pay off fell a little behind and the payment agreement they offer is impossible. They want my XXXX a month XXXX plus XXXX every pay period making defaults on agreement almost a guarantee then only offer the same agreement. No matter what I offer I need help
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: NY
Zip: 121XX
Submitted Via: Web
Date Sent: 2023-07-14
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-13
Issue: Vehicle was repossessed or sold the vehicle
Subissue:
Consumer Complaint: This loan from XXXX XXXX from XXXX XXXX XXXX XXXX XXXX was taken out on an original title and also a car title loan. Which places a memorandum title under my name in the license bureau and occured wrong for a tow and repossession about the possession of the car. The tow place XXXX XXXX XXXX towed it and the lien holder picked up which to my understanding was the lien holder who's name was in the memorandum title with my name also on there as the owner bought for about XXXX but the auto loan was XXXX at the car lot in the contract. I have lost my contract and the memorandum title the date of purchase was XX/XX/. And I do not have possession of the vehicle. Because it was towed and is now in the lien holders possession in XXXX Ohio credit acceptance is in Michigan. For some reason I was not contacted about the repossession of the vehicle or the tow. So what was weird is that they picked up from the tow yard and has the lien holder doing so. But the repossession was supposed to go to XXXX XXXX I denie both the purchase and the memorandum title for only having put a down payment down. The repossession took place only because of one missed payment. Harassment came from the county court. And I don't know what happened but they took a driver 's license completely off the record before it was supposed to expire. I haven't heard anything about the car the loan or the reason my driver 's license was replaced plus someone is in possession of it the XXXX loan seemed like a car title loan scam. And plus identity theft because they would have to replace tags and they have been in title places taking off cars with original titles and it repeats about a XXXX XXXXXXXX I had like that could have been my fault on all three. They have wipes out my county record and no record of the spark so it seems wired about the loan from XXXX Ohio where I bought the car from. An extension of picking the car up went under I understand partly it's paid for but the title loan isn't from credit acceptance. There is civil claim attached to this I lost for my payments back for being in the middle of this loan on a car already bought.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: OH
Zip: 45371
Submitted Via: Web
Date Sent: 2023-08-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-13
Issue: Struggling to pay your loan
Subissue: Denied request to lower payments
Consumer Complaint: Hello, I have a car loan with credit acceptance, and I am not thrilled with how business is done there. I have contacted the Attorney General in my state and the answer provided from the finance company was. ( We will not call her ). The AG advised me to seek an attorney. I called the finance company because I have been behind on my bill. It is very high and at the time I was making more money than I am today, and I told them I was homeless, but there was nothing they could do to help me. This company places your account in the collection a day after your payment is due. The day after it is due, they are calling you and harassing you on the phone. My credit report is hurting due to this. I was told it was in the contract. They will call you all day on Sunday. I complained about that. I called to set up payments ; however, it is so high I have to try, and do it because I need to fix my credit. The finance company says they do this to help us. I am not sure how this is helping me when I am always stressed out. Trying to find a place to live. I called the other day to set up a payment plan and I have to pay XXXX every two weeks. I just feel the practices are not good here at credit acceptance. I want to refinance for a lower payment, but I can't get refinanced because this loan hurts my credit. Please if you can look into the practices of this company, I would appreciate it until then I will continue to try and pay. Fair is fair, but I do not believe they are being fair.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: PA
Zip: 19082
Submitted Via: Web
Date Sent: 2023-07-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-12
Issue: Managing the loan or lease
Subissue: Problem with the interest rate
Consumer Complaint: XX/XX/XXXX, I purchased a car from XXXX XXXX XXXX, they reached out to CREDIT ACCEPTANCE CORPORATATION for and extension of credit. The consumer credit contract interest rates are in violation of the NJSA 31:1-1 CIVIL USURY, which the maximum legal rate in NJ is 16 % per annum if there's a written contract. The contract in question has a 22.99 % interest rate. CREDIT ACCEPTANCE CORPORATATION has continuously engages in these deceptive practices as referenced in CFBP/NY Attorney general lawsuit. since XXXX CREDIT ACCEPTANCE CORPORATATION has issued consumer credit contract with an average of 22.99 % or 23.99 % interest rate, completely and willfully disregarding the individual state statutes on civil usury. Ultimately as the NY Attorney General stated setting the consumer up to fail.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: NJ
Zip: 08302
Submitted Via: Web
Date Sent: 2023-07-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-13
Issue: Took or threatened to take negative or legal action
Subissue: Sued you without properly notifying you of lawsuit
Consumer Complaint: On XX/XX/23 Credit Acceptance started garnishing my wages without any warning. The amount is {$140.00} a week.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: LA
Zip: 70043
Submitted Via: Web
Date Sent: 2023-07-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A