Virginia to receive more than $19 million in Credit Acceptance settlement

Virginia is expected to receive more than $19 million in restitution and debt relief under a multistate settlement with auto lender Credit Acceptance Corporation, according to the Virginia Attorney General's Office.

The agreement, involving Virginia and 40 other states, provides $694 million in cash and debt relief nationally. Virginia's share includes more than $2 million in restitution and more than $17 million in debt relief, along with nearly $350,000 from an additional payment to participating attorneys general.

The settlement resolves allegations that Credit Acceptance originated some loans that consumers could not reasonably afford and that dealers in its network improperly added vehicle service contracts and guaranteed asset protection products to some loans. Credit Acceptance's obligations include new consumer disclosures, protections for certain risky loans, dealer monitoring and limits on vehicle prices for some borrowers.

The settlement is scheduled to take effect Nov. 2. Eligible consumers will be notified about relief. Virginians with questions may call Credit Acceptance at (800) 634-1506 or the OAG’s Consumer Protection Hotline at (804) 786-2042.

For details, visit the Virginia Attorney General's Office.