Drummond reaches settlement with Subprime Auto Lender Credit Acceptance Corporation
OKLAHOMA CITY (Sept. 17, 2026) – Attorney General Gentner Drummond announced today that Oklahoma and 40 other states have entered into a settlement with Credit Acceptance Corporation (CAC). CAC will provide $694 million in cash and debt relief to consumers in connection with their car loans. Oklahoma will receive $1.76 million from the settlement.
CAC is one of the nation’s largest auto finance companies, providing car loans to consumers with limited or impaired credit histories. The settlement also includes injunctive terms that require CAC to provide consumers disclosures about loan risks, give consumers protections from bad outcomes from certain risky CAC loans and help guard consumers from dealers “packing” CAC auto-loan contracts with unwanted Vehicle Service Contracts (VSC) and Guaranteed Asset Protection (GAP) products.
“Thousands of consumers suffered harm from Credit Acceptance Corporation’s predatory lending practices,” Drummond said. “This settlement holds CAC accountable to the law and forces fundamental changes to the company’s business practices.”
The multistate investigation resolves allegations that CAC originated loans that the company knew or should have known consumers could not afford. CAC gives a proprietary “score” to each of its loans representing its prediction of the percentage amount CAC will collect on the loan from all sources. Drummond and the coalition of attorneys general allege that consumers could not reasonably afford many of CAC’s low “score” loans, including those where CAC predicted the consumer would not pay back even the loan’s principal loan amount. Unsurprisingly, many of those low “score” loans resulted in consumers defaulting on their loans and losing their cars when they were repossessed and sold at auction.
The settlement, which will be effective Nov. 2, also resolves allegations that CAC encouraged and failed to reasonably prevent unlawful VSC and GAP product “packing” by auto dealers in CAC’s network. The attorneys general allege that CAC’s dealer compensation methodology and lack of reasonable dealer oversight resulted in dealers aggressively selling VSCs and GAP products in connection with CAC loans when consumers were either unaware they were purchasing the products or were led to believe the products had to be purchased for the consumer to get financing.
The settlement provides $60 million in cash restitution that will be distributed to consumers to whom CAC gave particularly risky loans. For certain risky CAC loans made between Nov. 1, 2015 and Nov. 30, 2025, CAC is also required to provide, on or before Nov. 2, $388 million in debt relief to consumers whose cars have been repossessed and $246 million in debt relief to consumers whose cars have not been repossessed, allowing those consumers to keep their cars. CAC must also pay an additional $15 million to the states.
Other states who are part of the coalition include Maryland, Arkansas, California, Illinois, Minnesota, New Jersey, Alabama, Alaska, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Indiana, Kentucky, Louisiana, Maine, Michigan, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington and Wisconsin.
Consumers with questions about the settlement with Credit Acceptance Corporation can call 1-800-634-1506. Customers eligible for debt relief will be notified by CAC. Consumers eligible for restitution will be notified by a claims administrator.
