Credit Acceptance borrowers who qualify for the debt relief in the company’s $694 million settlement with 41 attorneys general will not have to do anything to get it — and those who are not told otherwise should keep making their car payments. The company must erase qualifying balances itself on or before November 2, 2026 and then notify each borrower. It says fewer than 3% of its open accounts are affected.
Status: Settled, effective November 2, 2026 | No claim form | $634 million debt forgiveness + $60 million restitution | No admission of wrongdoing
The Deal in Numbers
Credit Acceptance Corporation, a Southfield, Michigan company that buys car loans from dealers who sell to buyers with poor or limited credit, agreed on September 17, 2026 to resolve a six-year multistate investigation and a 2023 federal lawsuit filed by New York.
| $388 million | Estimated debt forgiveness for borrowers whose cars were repossessed or surrendered and sold. |
| $246 million | Estimated debt forgiveness for qualifying borrowers who still have their cars. |
| $60 million | Cash restitution, distributed through a state-selected administrator. |
| $15.5 million | Paid to the states, separate from consumer relief. |
New York resolved its own case, People of the State of New York v. Credit Acceptance Corporation, No. 1:23-cv-00038-JMF, in the U.S. District Court for the Southern District of New York, filing a proposed consent order and judgment for Judge Jesse M. Furman the same day. Forty other attorneys general — covering 39 states and the District of Columbia — are entering consent judgments in their own courts, led by an executive committee of Maryland, Arkansas, California, Illinois, Minnesota and New Jersey. Credit Acceptance denied the allegations and settled without admitting wrongdoing.
Three Tests for Debt Relief
Every loan that gets debt forgiveness has to pass all of these:
- Timing. Originated November 1, 2015 through November 30, 2025, and still open on December 1, 2025.
- Score. A Credit Acceptance Score below 56 — an internal forecast of how much of the loan the company expected to collect from all sources, including repossession.
- Affordability. A monthly car payment equal to 13% or more of the borrower’s monthly income when the loan was made.
Qualifying loans then fall into one of two groups. If the car was repossessed or voluntarily surrendered and sold within 18 months of the loan, the entire remaining balance is waived. For certain other qualifying borrowers whose car was never repossessed and sold, the entire balance is waived, the lien is released, and Credit Acceptance sends the title if it holds it — these borrowers keep their cars.
Borrowers cannot look up their own Credit Acceptance Score, so there is nothing to check or apply for. The company decides who qualifies and sends notice.
What Happens to a Forgiven Account
For every account that receives debt relief, Credit Acceptance must:
- stop reporting the account to the credit bureaus and ask the three major bureaus to delete the trade line;
- stop all collection activity;
- never sue on the account or sell it to a debt buyer;
- notify the borrower by letter, email or text that the account is closed, nothing more is owed and any lien is released.
The Separate $60 Million Restitution Pool
Cash restitution works differently from the debt relief. Credit Acceptance must pay $60 million into a trust account managed by a settlement administrator chosen by the attorneys general. The states’ executive committee has sole discretion over who receives money and how much; the attorneys general describe the recipients as consumers who received particularly risky loans. Credit Acceptance must hand over names, last known addresses and account numbers for the borrowers the states identify, and the administrator will contact them directly. No administrator, payment amount or distribution date had been announced.
Some states have published their residents’ share:
| New Jersey | More than $28.5 million, including about $2.2 million in restitution and $25.6 million in debt relief. |
| Utah | 124 residents share $177,935 in restitution plus about $1.6 million in debt relief; $122,092 goes to the state. |
| Connecticut | Residents eligible for up to $2 million; the state receives $177,650. |
What the Attorneys General Alleged
The states allege Credit Acceptance approved many low-score loans it knew or should have known borrowers could not afford, including loans its own forecast showed would not repay even the principal, and that many of those borrowers defaulted and had their cars repossessed and auctioned. They also allege that the company’s dealer compensation and weak oversight encouraged dealers to pack loans with vehicle service contracts and GAP coverage that buyers either did not realize they were paying for or were told were required. New Jersey adds an allegation that the company targeted credit-challenged, low-income buyers with credit-improvement offers and then used aggressive collection tactics. None of this was proven in court.
The Consumer Financial Protection Bureau originally sued alongside New York in January 2023. According to New Jersey’s attorney general, the CFPB dropped its case in 2025 and the states continued without it.
New Rules for Future Loans
Most conduct terms last seven years from when each takes effect. The main ones:
- An “off ramp.” For loans made after December 1, 2025 to borrowers in the highest-risk score and payment-to-income bands, if the car is repossessed and sold within 12 or 18 months depending on the band, 95% of the remaining deficiency is waived and the debt cannot be sued on or sold. This is offered for five years starting November 2, 2026.
- A price cap. For buyers with a credit score below 600, the selling price cannot exceed 109% of the car’s highest retail book value.
- Pricing controls. Dealers are blocked from raising a car’s price after it is tied to a financing application, and Credit Acceptance must take reasonable steps against financing- or credit-based markups, audit dealers and investigate pricing complaints.
- Add-on safeguards. A signed form before closing stating that service contracts and GAP are optional and showing the payment with and without them, a written reminder within 10 days, and cancellation through Credit Acceptance.
- Disclosures and underwriting. Sub-600 buyers must be told how often similar borrowers fall behind and what nonpayment can lead to; dealers must show retail book value before signing; income must be verified; and used-car contracts cannot run longer than 75 months, or the industry average plus 12 months if longer.
The existing ban on starter-interrupt devices and dealer GPS tracking stays in place, and the company must file annual compliance reports with a monitoring committee for five years.
How Each Side Framed It
Maryland Attorney General Anthony G. Brown said the settlement “erases hundreds of millions of dollars in debt for borrowers struggling under loans that should never have been made.” Credit Acceptance said the resolution “does not require material changes to the Company’s operations,” that the monetary terms are covered by amounts already accrued, and that the requirements are “broadly consistent” with its existing practices.
Deadlines After November 2
November 2, 2026 is both the effective date and the deadline for the debt relief. Unless the order sets another date, the monetary terms must be carried out within 90 days after that, and Credit Acceptance must confirm to the states within 120 days that the debt relief, credit-reporting and notice steps are finished. Conduct changes must be in place, using reasonable best efforts, within six months of the court entering judgment.
Credit Acceptance warns customers to be wary of unexpected letters, texts, emails or calls about “settlement money” and to follow only instructions they can verify. Its settlement information page answers account questions. The New York consent order is posted in full on our sister site’s Credit Acceptance settlement report.
Frequently Asked Questions
Do I need to file a claim for Credit Acceptance debt relief?
No. There is no claim form. Credit Acceptance must apply the debt relief itself on or before November 2, 2026 and notify each covered borrower by letter, email or text. Restitution recipients will be contacted by the administrator the attorneys general select.
Should I stop paying my Credit Acceptance loan?
No. Credit Acceptance says the settlement does not change existing contracts and that customers should keep making scheduled payments unless the company contacts them directly with different instructions.
Which loans qualify for debt forgiveness?
Loans originated November 1, 2015 through November 30, 2025 that were still open on December 1, 2025, where the borrower had a Credit Acceptance Score below 56 and a monthly payment of 13% or more of monthly income at origination. Borrowers cannot see the score, so Credit Acceptance determines who qualifies.
Will a forgiven loan come off my credit report?
For accounts that receive debt relief, Credit Acceptance must stop reporting to the credit bureaus and ask the three major bureaus to delete the trade lines. It also cannot collect on, sue on or sell those accounts.
How much restitution will I get?
No amount has been announced. The $60 million restitution fund is distributed at the sole discretion of the states’ executive committee to consumers it identifies, and no administrator or distribution date had been named.
Did Credit Acceptance admit wrongdoing?
No. Credit Acceptance denied the allegations and settled without admitting any violation of law or liability. The allegations were not decided in court.
Sources
- Proposed Consent Order and Judgment, People of the State of New York v. Credit Acceptance Corporation, No. 1:23-cv-00038-JMF (S.D.N.Y.), filed September 17, 2026 (PDF).
- Maryland Attorney General — Final Judgment and Consent Decree (PDF) and Complaint (PDF).
- New Jersey Attorney General — announcement (September 17, 2026) and Final Consent Judgment (PDF).
- Connecticut Attorney General announcement (September 17, 2026).
- Utah Department of Commerce and Attorney General announcement (September 22, 2026).
- Credit Acceptance — company news release (September 17, 2026) and customer settlement page.
- OpenClassActions.com — Credit Acceptance $694M Settlement Wipes Debt on Risky Car Loans.
Source and credit: this report builds on our sister site’s coverage — OpenClassActions.com: Credit Acceptance Settles With 41 Attorneys General for $694 Million — which follows the case and is updated as new filings, orders and payment news come in.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.