Subprime Auto Lender CAC Sued by NY Over ‘Predatory’ Loans (3)

Credit Acceptance Corp., one of the biggest subprime US auto lenders, was sued by New York and a federal regulator for allegedly luring thousands of low-income individuals into unaffordable high-interest car loans.

The company allegedly deceived customers by misstating key terms on loan agreements, including the principal and interest amounts, while also failing to disclose thousands of dollars in credit charges, according to a complaint filed Wednesday by New York Attorney General Letitia James and the US Consumer Financial Protection Bureau.

Credit Acceptance projected “down to the penny” how much additional money it could extract from struggling borrowers through ...