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January 20, 2022
Finance and Insurance

Credit Acceptance settles Miss. lawsuit over ‘unfair and deceptive practices’

Subprime auto lender Credit Acceptance Corp., a common target for litigation by state attorneys general, has once more moved to settle such a lawsuit.

Credit Acceptance of Southfield, Mich., disclosed in a securities submitting late Monday that it had reached a settlement settlement with the Mississippi Attorney General. The 2019 lawsuit, filed within the Chancery Court of the First Judicial District of Hinds County, Mississippi, alleged that Credit Acceptance “had engaged in unfair and deceptive practices in the State of Mississippi in violation of the Mississippi Consumer Protection Act,” based on the securities submitting.

Crain’s Detroit Business, an affiliate of Automotive News, was unable to acquire a replica of the preliminary criticism.

“As part of the settlement, Credit Acceptance is making a charitable donation of $125,000, is paying $325,000 to the State of Mississippi, inclusive of attorney’s fees and expenses, and is providing certain assurances, which relate to, among other things, continued compliance with laws applicable to indirect auto finance operations in Mississippi and disclosures to consumers purchasing an optional vehicle service contract,” the submitting reads. “The Attorney General agreed to dismiss the litigation, and Credit Acceptance made no admission of liability or wrongdoing as part of the settlement.”

Credit Acceptance mentioned in an announcement: “We are pleased to put this litigation behind us, and look forward to continuing to serve customers in the State of Mississippi through our financing programs. The charitable donation is to the Mississippi Council on Economic Education, in support of the Council’s mission to increase economic and financial literacy in Mississippi. The Council’s mission is aligned with that of Credit Acceptance, which strongly supports financial literacy and encourages all consumers to take advantage of financial education resource.”

Inquiries in search of remark from the workplace of Mississippi Attorney General Lynn Fitch weren’t returned.

The settlement introduced this week is kind of small in comparison with one announced earlier this year with the Massachusetts legal professional common for $27.2 million in a case with comparable allegations.

The firm nonetheless faces a litany of different litigation and investigations, together with a shareholder lawsuit, based on disclosures in its most up-to-date annual report.

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