The Consumer Financial Protection Bureau and New York’s attorney general sued subprime auto lender Credit Acceptance Corp. Wednesday for deceiving borrowers about the true cost of car loans, violating state usury laws and failing to disclose charges and terms to consumers.
Regulators allege that Credit Acceptance, an indirect auto lender in Southfield, Michigan, deceived thousands of borrowers by failing to disclose and include finance charges in calculating the cost of a car loan. Consumers typically are not provided the full cost and interest rate on a loan at a dealership and many only find out about the true cost when a loan contract is sent to them in the mail, regulators alleged in a 59-page lawsuit filed in the U.S. District Court for the Southern District of New York.
