Credit Acceptance Reaches $694M Settlement With 41 States Including Delaware and Maryland
September 17, 2026/
Maryland and 40 other states, including Delaware, have reached a $694 million settlement with Credit Acceptance Corporation, a major auto lender that serves consumers with limited or poor credit. The settlement resolves allegations that CAC made unaffordable auto loans that led to defaults and repossessions, and failed to adequately prevent dealers from adding unwanted vehicle service contracts and GAP products to loans. The agreement includes $60 million in cash restitution, $388 million in debt relief for borrowers whose vehicles were repossessed, and $246 million for borrowers who kept their vehicles. CAC must also make changes to its lending practices, including providing clearer loan-risk disclosures, strengthening protections against unwanted add-on products and offering 95% debt relief on certain qualifying high-risk loans that fail quickly. The settlement takes effect November 2nd, 2026, and eligible consumers will be notified.