American Credit Acceptance (ACA) faces a major lawsuit from the Consumer Financial Protection Bureau (CFPB) and New York Attorney General, alleging predatory lending practices that target vulnerable borrowers and exploit them with unfair terms, high costs, and aggressive debt collection tactics. While ACA denies wrongdoing and the lawsuit is ongoing, this raises serious concerns about their business and potential risks for loan seekers.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| Ongoing (2023) | CFPB & New York AG Lawsuit | Consumer Financial Protection Bureau et al. v. American Credit Acceptance, LLC, No. 1:23-cv-00233 (E.D.N.Y.) | U.S. District Court for the Eastern District of New York | Accusations include: Targeting low-credit, high-debt borrowers likely to default, charging exorbitant interest and fees, misleading loan terms, and aggressive debt collection practices. |
| 2019 | Consumer Class Action | Simpson v. Am. Credit Acceptance, LLC, Case No. 2:19-cv-01157 (D. Md.) | U.S. District Court for the District of Maryland | Settled for undisclosed amount, alleging repossessions without warning and inaccurate credit reporting. |
| 2018 | FLSA Wage & Hour Violations | Hernandez et al. v. Visiting Angels of Baltimore East LLC, et al., Case No. 22-cv-425-BAH | U.S. District Court for the District of Maryland | Ongoing lawsuit claiming unpaid overtime and off-the-clock work for caregivers. |
Additional Concerns:
- ACA’s history of similar lawsuits and settlements suggests potential systemic issues in its lending practices.
- The CFPB and NY AG lawsuit highlights potential consumer harm due to high-risk loans, misleading terms, and aggressive debt collection.
- Independent research and careful review of loan agreements are crucial before making any decision about an ACA loan.
Recommendations for Potential Borrowers:
- Credit Score and Report: Obtain your credit score and report from all three bureaus to assess your creditworthiness and negotiate better loan terms.
- Shop Around: Compare loan offers from multiple lenders to find the best interest rates and terms that suit your needs.
- Fine Print Scrutiny: Read and understand all loan agreement terms, including interest rates, fees, late payment penalties, and repossession clauses.
- Risk Awareness: Be aware of the potential risks associated with high-interest loans, including defaulting, repossession, and financial hardship.
- Legal Consultation: Seek professional legal advice if you have any concerns or uncertainties regarding ACA loans or lending practices.
Disclaimer: This information is for informational purposes only and does not constitute legal advice. Please consult qualified legal professionals for specific legal questions or concerns regarding American Credit Acceptance, loan agreements, or potential legal recourse.
