Queen Creek, Arizona — Arizona has joined a forty-one-state legal settlement totaling $694 million with subprime automobile lender Credit Acceptance Corporation, resolving an investigation into unaffordable vehicle loans and undisclosed contract add-ons, Attorney General Kris Mayes announced.
Under the negotiated resolution, Arizona borrowers will receive more than $3.8 million in direct loan forgiveness alongside roughly $1 million in restitution disbursements, with an additional $219,507 designated for the state Consumer Protection Revolving Fund. Nationwide, the agreement mandates $634 million in total debt cancellation and $60 million in cash distributions to affected vehicle owners.
The multistate investigation alleged that the company systematically approved vehicle financing that borrowers could not realistically afford under its internal scoring mechanisms, leading to frequent repossessions and defaults. State attorneys general also cited lax oversight of affiliated car dealerships that bundled expensive optional add-ons, including vehicle service contracts and guaranteed asset protection policies, into financing packages without transparent buyer approval.
"My office will always fight for Arizonans who are harmed by unfair lending practices. This bipartisan settlement will deliver real relief to Arizonans who were misled by Credit Acceptance Corp." — Arizona Attorney General Kris Mayes
