Credit Acceptance Corporation, a subprime auto lender, agreed on Sept. 18 to a $694 million multistate settlement that rewrites how it lends going forward. Beginning Nov. 2, 2026, the company must run a five-year “off-ramp” program that forgives most of the balance on certain loans that fail quickly, and it must hold vehicle prices to a cap for seven years. The attorneys general say borrowers already covered by the settlement need not act.
What the off-ramp actually does
The off-ramp is a forward-looking rule, not a payout on old loans. According to the California Attorney General’s release, qualifying consumers with risky loans originated from December 2025 onward receive 95% debt relief, and the company is barred from filing collections lawsuits against them. The program lasts five years and starts Nov. 2, 2026.
Maryland’s announcement describes the same terms and lists Nov. 2, 2026 as the settlement’s effective date. The releases do not publish the exact test that decides when a new loan counts as one that fails quickly, so the trigger for a specific borrower is set in the settlement documents rather than in the press materials.
A price ceiling of 109% of retail book value
The second mechanism targets what buyers pay. Under the settlement, the company must cap vehicle prices at 109% of retail book value for certain consumers, and the cap runs seven years. Connecticut’s release repeats the ceiling and the duration.
For a buyer on a fixed income, the practical effect is on the purchase itself: a ceiling tied to book value limits how far a sticker price can run above what the vehicle is worth. The attorneys general pair the cap with the off-ramp and with new disclosure rules.
The $694 million split between cash and debt relief
The headline number combines cash and forgiven debt. The California release breaks it into $60 million in cash restitution, $388 million in debt relief for consumers whose vehicles were repossessed and $246 million in debt relief for consumers who still hold their cars, plus a $15 million payment to the attorneys general. Covered loans were originated between Nov. 1, 2015 and Nov. 30, 2025.
California’s share is $1.46 million in restitution and $5.4 million in debt relief. Vermont’s office reports 87 consumers receiving $124,841 in restitution and 60 receiving $462,871 in debt relief. Those state-level figures show how the national pool breaks down for a single small state.
Two date ranges run side by side, and the releases keep them separate. Relief on existing loans covers those originated between Nov. 1, 2015 and Nov. 30, 2025, while the off-ramp applies to risky loans made from December 2025 onward. A loan made in 2022 therefore falls in the covered range for debt relief and restitution, while a loan signed after November 2025 is the kind the off-ramp is built to reach. The releases say the price cap applies to “certain consumers” without defining that group, so the settlement text is the place to confirm who is covered.
Other states report their own totals. Connecticut says up to $2 million in relief is available to its consumers, with a $177,650 payment to the state, and the District of Columbia reports over $250,000 in consumer restitution and more than $130,000 in penalties and fees.
Who was leading, and how many states signed
The count differs by release. California’s says 40 attorneys general joined, while the District of Columbia’s release says 41 states plus D.C., and Maryland’s says 41 states settled. New York pursued separate litigation. Maryland led an executive committee with Arkansas, California, Illinois, Minnesota and New Jersey.
D.C. Attorney General Brian Schwalb said the company “set car buyers up to fail by making loans it knew they would never be able to afford.” Connecticut Attorney General William Tong said the company “profited off risky loans destined to fail, padded with worthless services and so-called protections.” The D.C. release also lists added disclosure duties for service contracts and GAP products, warnings about default risk before a loan closes, and dealer price monitoring.
Who contacts borrowers, and how
No claim form is described in the releases. The attorneys general say eligible consumers have already been identified, will be notified and do not need to take action. Maryland’s release says debt-relief recipients will hear from the company, while those owed restitution will hear from a claims administrator. Debt relief is due on or before Nov. 2, 2026, according to California.
A borrower who believes a loan was covered but hears nothing can contact the attorney general’s consumer office in the state that took part. Maryland lists 410-576-6456 and CACSettlement@oag.maryland.gov, and Vermont’s Consumer Assistance Program is at 800-649-2424. Connecticut lists 860-808-5318 for consumer inquiries. Contacting these offices is free, and no fee is needed to receive relief.
The California Attorney General’s release remains the controlling record for the Nov. 2 start, the five-year off-ramp and the seven-year cap.
Reading Credit Acceptance Notices Before Nov. 2
The Credit Acceptance settlement leaves the work of identifying covered borrowers to the company and a claims administrator, so relief arrives as a notice or a payment rather than a form. Debt-relief notices and restitution notices come from different senders, and the Nov. 2 date sits beside separate dates for anything mailed. A letter that looks unfamiliar is easy to set aside or, for some readers, to mistake for a scam.
The Settlement & Refund Recovery System includes the four-date rule for reading a settlement notice and the scam-proof rules, which help sort a legitimate notice from a look-alike before any record is acted on.
Open the four-date rule for reading a settlement notice in The Settlement & Refund Recovery System →
This article was produced with AI assistance and checked against the primary sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
