Utah Joins $694 Million Multistate Settlement with Auto Lender Credit Acceptance Corporation
Attorney General Derek Brown and the Utah Department of Commerce’s Division of Consumer Protection Secure $1.9 Million in Relief for Utah Consumers
SALT LAKE CITY—On Sunday, Utah joined 39 other attorneys general in a settlement with Credit Acceptance Corporation (CAC), a national auto-financing company. The agreement delivers $694 million in cash restitution and canceled debt to consumers nationwide on their car loans. Working alongside the Utah Division of Consumer Protection, the Office of the Utah Attorney General secured nearly $1.9 million in relief for Utah consumers, including $122,092 paid directly to the state.
CAC is one of the nation’s largest auto-loan companies, extending credit to borrowers with low or limited credit histories. Following an investigation, the states allege that CAC issued loans it knew or should have known consumers could not afford, including some the company expected borrowers would fail to repay even the principal. CAC assigned each loan a score reflecting how much it expected to collect, and many low-scoring borrowers defaulted and had their vehicles repossessed.
“No company should be able to profit by setting its own customers up to fail. This settlement holds Credit Acceptance accountable and makes clear that lenders who cut corners will answer for it,” said Utah Attorney General Derek Brown.
In the settlement, the 124 affected Utah consumers will receive a share of $177,935 in cash restitution. They will also benefit from $1,083,782 in full debt relief for those whose vehicles were repossessed and $526,810 for consumers who retained their vehicles.
“Exploiting vulnerable Utah consumers through high-pressure sales and deception will not be tolerated,” said Katherine Hass, Director of the Utah Division of Consumer Protection. “We remain committed to holding bad actors accountable and delivering justice directly to affected Utah households.”
The settlement, which takes effect on November 2, 2026, requires CAC to change how it makes loans and to stop dealers from quietly adding costly extras, like service contracts and “gap” coverage, to car deals without the buyer’s clear agreement. The states say CAC pushed dealers to sell these products and did too little to rein them in, so buyers often ended up paying for extras they didn’t know about or thought they had to buy to get the loan. According to the states, the way CAC paid its dealers, combined with weak oversight, encouraged the practice.
Going forward, the settlement requires CAC to:
Give people a way out of certain risky loans that quickly go bad—canceling 95% of what they owe and agreeing not to sue them to collect. CAC must offer this for five years, starting November 2, 2026
Put safeguards in place so dealers can’t slip extra products into a deal — including clearer information before the sale, an easy way to cancel those products afterward, and closer monitoring of dealers
Tell buyers, before they sign, about the risk of falling behind and what the car is actually worth
Limit a car’s price to no more than 109% of its standard book value for certain buyers, for seven years
Stop dealers from raising a car’s price because of the buyer’s credit or above the advertised price
Utah’s team, including the Division of Consumer Protection Director, Katherine Hass, and the Office of the Attorney General’s Deputy Attorney General, Douglas Crapo and Assistant Attorneys General Katie Villani and Peishen Zhou,joins the Executive Committee leading the settlement, which comprises the attorneys general of Maryland, Arkansas, California, Illinois, Minnesota, and New Jersey.
Also joining the settlement are the attorneys general of Alabama, Alaska, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaiʻi, Indiana, Kentucky, Louisiana, Maine, Michigan, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, and Wisconsin. New York is concurrently settling litigation it brought against CAC in the U.S. District Court for the Southern District of New York.
Consumers with questions about the settlement can contact the Division of Consumer Protection at [email protected]. CAC will notify customers eligible for debt relief. A claims administrator will notify eligible consumers of their restitution.
The Utah Division of Consumer Protection is one of ten agencies within the Utah Department of Commerce. Its mission is to strengthen trust in Utah’s commercial activities by protecting consumers through education and impartial enforcement. The Division administers more than 25 Utah state laws designed to protect consumers, including those related to telephone solicitations. The Division’s enforcement actions are supported and often represented by the Utah Attorney General’s Office, ensuring comprehensive measures to safeguard the rights and safety of consumers throughout Utah. For additional details or to file a complaint, please visit https://dcp.utah.gov/.
Media Contact:
Melanie Hall
Communications Director
Utah Department of Commerce
[email protected]
Office: (801) 530-6646
Cell: (385) 290-0719
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