Credit Acceptance Corporation filed a Form 8-K on September 18, 2026, disclosing that it entered into consent judgments on September 17, 2026, with the attorneys general of 40 states and the District of Columbia to resolve a multi-state investigation and a 2023 lawsuit brought by the New York State Attorney General.

Key Highlights

  • Cash payment to attorneys general: Credit Acceptance will pay an aggregate of $15.5 million to the Participating Attorneys General.
  • Consumer remediation fund: The company will pay $60 million into a trust account for a settlement administrator to remediate alleged consumer losses.
  • Debt relief: The company will waive all outstanding balances for certain customers with open accounts as of December 1, 2025, totaling an estimated $634,000,000.
  • No additional charges: According to the filing, the payments and debt relief "will not require the Company to record charges beyond amounts previously accrued and disclosed in the Company's financial statements."
  • No admission of wrongdoing: The filing states that "in entering into the Agreements, the Company has made no admission of wrongdoing or liability."
  • Ongoing compliance requirements: The agreements impose five-year debt-collection practice changes, seven-year additional consumer disclosure requirements, and five-year annual reporting to a monitoring committee.

Credit Acceptance Resolves Multi-State Attorney General Investigation

According to the 8-K filed with the Securities and Exchange Commission, Credit Acceptance Corporation (NASDAQ:CACC) entered into separate consent judgments with the offices of the attorney general of 40 states and the District of Columbia on September 17, 2026. The agreements resolve the previously disclosed lawsuit filed on January 4, 2023, by the Office of the New York State Attorney General in the United States District Court for the Southern District of New York, as well as claims related to the previously disclosed multi-state investigation involving the other participating jurisdictions.

The financial terms of the agreements include three components: a $15.5 million aggregate payment to the Participating Attorneys General; a $60 million payment into a trust account to be administered by a settlement administrator selected by a committee of the Participating Attorneys General for the purpose of remediating alleged consumer losses; and an estimated $634,000,000 in debt relief through the waiver of all outstanding balances owed by certain customers with open accounts as of December 1, 2025. The filing noted that none of these obligations require charges beyond amounts the company had previously accrued and disclosed.

The agreements also impose operational requirements on the company. For a five-year period, the company must implement changes to its debt-collection practices for consumer loans originated after December 1, 2025 that meet specified criteria and provide annual compliance reports to a monitoring committee. For a seven-year period, the company must issue or require participating dealers to issue additional consumer-facing disclosures regarding vehicle financing, vehicle pricing, and ancillary products. The company disclosed that it "believes these prescriptions and requirements are broadly consistent with regulatory expectations in the automotive finance industry and do not fundamentally alter the Company's business model or materially affect its business." Each agreement remains subject to final court approval in the relevant jurisdiction.

What Was Disclosed

Credit Acceptance Corporation disclosed consent judgments with 40 state attorneys general and the District of Columbia, involving $15.5 million in payments to regulators, $60 million for consumer remediation, and an estimated $634 million in debt relief, with no additional financial charges required beyond prior accruals.