There is currently an active lawsuit against American Credit Acceptance (ACA), filed in 2023 by the Consumer Financial Protection Bureau (CFPB) and the New York State Office of the Attorney General. The lawsuit alleges that ACA has engaged in predatory lending practices, including:
- Making loans to borrowers with low credit scores and high debt-to-income ratios, even though they are likely to default on the loans.
- Charging borrowers high interest rates and fees.
- Misleading borrowers about the terms and conditions of their loans.
- Aggressively pursuing borrowers who default on their loans.
The lawsuit is still pending, and it is unclear how it will be resolved. However, the lawsuit raises serious concerns about ACA’s business practices and its impact on consumers.
In addition to the CFPB/New York lawsuit, ACA has also been involved in a number of other lawsuits over the years. These lawsuits have alleged a variety of wrongdoing, including:
- Predatory lending practices
- Unfair debt collection practices
- Breach of contract
- Consumer fraud
ACA has denied any wrongdoing in all of these lawsuits. However, the company has agreed to settle some of the lawsuits for millions of dollars.
If you are considering taking out a loan from ACA, it is important to be aware of the risks involved. You should also do your research and read the fine print carefully before signing any contracts.
Here are some tips for protecting yourself when considering taking out a loan from ACA:
- Get your credit score and report from all three major credit bureaus. This will help you understand your creditworthiness and get the best possible interest rate on a loan.
- Shop around and compare offers from multiple lenders before choosing a loan.
- Read the fine print carefully and make sure you understand all of the terms and conditions of the loan agreement.
- Be aware of the risks involved, such as the possibility of defaulting on the loan and having your car repossessed.
If you have any concerns about ACA, you should consult with an attorney before signing any contracts.
