DELAWARE- Delaware Attorney General Kathy Jennings announced that the state has joined 40 other states in a $694 million settlement with Credit Acceptance Corporation involving allegations over risky auto loans and the sale of Vehicle Service Contracts and Guaranteed Asset Protection products.
Delaware will receive $183,523.24 from the settlement.
“Access to a reliable vehicle is critical for so many people—it is their lifeline for commuting to work, obtaining groceries, and attending medical appointments. Those who seek out financing to cover their purchase should not be forced into loans they cannot afford,” Jennings said.
The settlement will award $60 million in cash restitution to people who received particularly risky loans. The corporation must also provide $388 million in debt relief for qualifying consumers whose cars were repossessed and $246 million for qualifying consumers who kept their cars.
The agreement requires the corporation to change its lending and dealer practices, including additional disclosures about loan risks and protections against unwanted add-on products.
For certain risky loans made beginning in December 2025, qualifying consumers whose loans fail quickly will receive 95% debt relief, and CAC will be prohibited from filing collection lawsuits against them.
The settlement takes effect Nov. 2, 2026. Credit Acceptance Corporation will notify consumers eligible for debt relief, while a claims administrator will contact those eligible for restitution.
