CFPB Drops Case Against Subprime Auto Lender Credit Acceptance

The Consumer Financial Protection Bureau dropped out of a case alleging one of the country’s largest subprime auto lenders lured borrowers into unaffordable loans, but New York will continue to prosecute it.

The CFPB filed a notice of withdrawal late Thursday in the case against Credit Acceptance Corp. pending in the US District Court for the Southern District of New York.

The CFPB and New York Attorney General Letitia James (D) sued Credit Acceptance in January 2023, alleging the Southfield, Mich.-based subprime auto lender deceived customers by misstating principal and interest amounts and other key loan terms. The company also ...