Nearly 5K Georgians eligible for car loan relief as part of settlement
(Photo by Joe Raedle/Getty Images)
ATLANTA - Nearly 5,000 Georgians could receive relief from their car loans under a multistate settlement with Credit Acceptance Corporation.
What we know:
Nearly 5,000 Georgians could receive cash payments or relief from their car loans under a $694 million multistate settlement with Credit Acceptance Corporation.
Georgia Attorney General Chris Carr said Georgia is one of 41 states participating in the agreement. More than $28 million in cash payments and debt relief is expected to go to consumers in Georgia.
What led to the settlement?
The settlement resolves allegations that Credit Acceptance issued auto loans to consumers the company allegedly knew could not afford them.
The agreement also includes commitments related to customer disclosures, dealer oversight and other consumer protections.
Credit Acceptance said it reached the settlement without admitting wrongdoing. The company said the agreement resolves litigation and regulatory matters that had been pending for several years.
"We are pleased to close this chapter and continue to prioritize our customers every single day," CEO Vinayak Hegde said in a message posted for customers.
Who qualifies for relief?
Credit Acceptance said fewer than 3% of its open accounts qualify for settlement-related debt forgiveness. The majority of customers will not receive relief and will not see any changes to their accounts.
Eligible customers will be contacted directly by Credit Acceptance or a settlement administrator working on behalf of the participating states. Notifications will be sent by mail or email and will explain what the settlement means for the customer’s account.
Customers do not need to apply or contact the company to determine whether they qualify. Credit Acceptance said its customer service representatives cannot confirm eligibility over the phone.
Customers should make sure their mailing and email addresses are current so they do not miss a notification.
Should customers continue making payments?
Credit Acceptance said customers should continue making their scheduled payments unless the company or the settlement administrator contacts them with different instructions.
For customers who do not qualify for relief, the settlement will not change how they make payments, manage their accounts or contact customer support.