Credit Acceptance plans $634M debt relief
CACC agreed to a multi-state consent judgment package with over $75 million in payments plus $634 million of debt relief that it says is fully covered by existing accruals.
Rhea-AI Filing Summary
Credit Acceptance Corporation (CACC) has entered into consent judgments with the attorneys general of 40 states and the District of Columbia to resolve previously disclosed litigation and a multistate investigation, with each judgment subject to final court approval in its jurisdiction. The company will pay $15.5 million to the participating attorneys general, $60 million into a consumer relief trust, and provide an estimated $634,000,000 of debt relief by waiving outstanding balances for certain customers with open accounts as of December 1, 2025. These monetary and debt-relief obligations will not require charges beyond amounts already accrued in the company’s financial statements. For five years, Credit Acceptance must implement changes to debt-collection practices for qualifying loans originated after December 1, 2025, and for seven years it must enhance consumer disclosures and related policies around vehicle financing, pricing, and ancillary products. The company states that these requirements are broadly consistent with regulatory expectations and do not fundamentally alter its business model or materially affect its business, while the agreements provide specified releases of related claims, subject to stated exclusions.
Positive
- Resolves major multiyear legal matters with New York and 40 other attorneys general plus the District of Columbia through consent judgments, reducing legal and regulatory uncertainty once court approvals are obtained.
- Company states the $15.5 million to attorneys general, $60 million consumer fund, and $634,000,000 in debt relief will be covered by existing accruals, avoiding new income-statement charges.
- Operational and disclosure changes required for five to seven years are described by the company as not fundamentally altering its business model or materially affecting its business.
Negative
- Settlement entails substantial obligations: $15.5 million to participating attorneys general, $60 million to a consumer relief trust, and an estimated $634,000,000 of debt relief for certain customers.
- Consent judgments are subject to final court approval in each jurisdiction, so some legal and timing uncertainty remains until approvals are obtained.
- The agreements impose enhanced compliance, reporting, and record-keeping obligations for up to seven years, increasing ongoing regulatory oversight and operational complexity.
8-K Event Classification
3 items: 1.01, 7.01, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Payment to participating attorneys general: $15.5 million
Consumer relief fund contribution: $60 million
Debt relief through balance waivers: $634,000,000
+5 more
8 metrics
Payment to participating attorneys general
$15.5 million
Aggregate amount to attorneys general of the State Parties and the District of Columbia under the agreements
Consumer relief fund contribution
$60 million
Total to a trust account administered by a settlement administrator for remediating alleged consumer losses
Debt relief through balance waivers
$634,000,000
Estimated aggregate outstanding balances to be waived for certain customers with open accounts as of December 1, 2025
State parties in agreements
40 states
Number of states joining the consent judgments, plus the District of Columbia
Debt-collection practice change period
5 years
Duration for implementing changes to debt-collection practices for specified consumer loans
Enhanced disclosure and policy period
7 years
Time during which additional consumer-facing disclosures and related policies must be maintained
Annual compliance reporting period
5 years
Years during which the company must provide annual compliance reports to a monitoring committee
Record-keeping requirement
3 years
Minimum period the company must maintain records necessary to demonstrate compliance with the agreements
Key Terms
consent judgment, debt relief, ancillary products, affordability‑related protections, +2 more
6 terms
consent judgment regulatory
"entered into separate consent judgments (collectively, the “Agreements”)"
A consent judgment is a court order that resolves a legal dispute when the defendant agrees to the outcome without a trial, often without admitting wrongdoing. It formally records the settlement terms—such as payments, injunctions, or required actions—and becomes enforceable like any judgment. For investors, it matters because it can create binding financial obligations, operational limits, or ongoing oversight while avoiding the uncertainty and expense of prolonged litigation, similar to accepting a negotiated settlement instead of fighting in court.
debt relief financial
"will provide debt relief in the form of a waiver of all outstanding balances"
ancillary products financial
"disclosures regarding vehicle financing, vehicle pricing, and ancillary products"
Regulation FD regulatory
"Item 7.01 Regulation FD Disclosure"
Regulation FD is a rule that prevents company insiders, like executives, from sharing important information with some people before others get it. It matters because it helps ensure all investors have equal access to key news, making the stock market fairer and reducing chances of insider trading.
forward-looking statements regulatory
"We claim the protection of the safe harbor for forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What legal matters is CREDIT ACCEPTANCE CORP (CACC) resolving in this 8-K?
The company is resolving a lawsuit filed January 4, 2023 by the New York Attorney General and claims related to a multistate investigation initiated in 2020 involving the District of Columbia and 40 state attorneys general, via consent judgments subject to court approval.
How much will CACC pay under the consent judgments described in the filing?
Credit Acceptance will pay $15.5 million to participating attorneys general and $60 million into a consumer relief trust. It will also provide an estimated $634,000,000 of debt relief through waivers of outstanding balances for certain customers with open accounts as of December 1, 2025.
Will CREDIT ACCEPTANCE CORP (CACC) record additional charges for this settlement?
No. The company states that the $15.5 million in payments to attorneys general, the $60 million consumer relief fund, and the estimated $634,000,000 in debt relief will not require additional charges beyond amounts previously accrued and disclosed in its financial statements.
What operational changes are required of CACC under the agreements?
For five years, the company must implement changes to debt-collection practices for certain loans originated after December 1, 2025. For seven years, it must enhance consumer disclosures and policies on vehicle financing, pricing, ancillary products, debt relief, affordability protections, dealer oversight, and non-use of starter interruption devices.
How long will CREDIT ACCEPTANCE CORP (CACC) be monitored under the settlement?
For five years, Credit Acceptance must provide annual reports on compliance to a monitoring committee and maintain records needed to demonstrate compliance for at least three years. Certain disclosure and policy obligations extend for seven years.
Does the settlement change CACC’s business model or operations materially?
The company states that the settlement’s prescriptions and requirements are broadly consistent with regulatory expectations in automotive finance and do not fundamentally alter its business model or materially affect its business.
Is the CREDIT ACCEPTANCE CORP (CACC) settlement final?
Not yet. Each consent judgment is subject to final court approval in its jurisdiction, and the company notes there can be no assurance regarding whether or when those approvals will be granted.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 17, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (248 ) 353-2700
Not Applicable | ||||||||
(Former name or former address, if changed since last report.) | ||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 1.01 Entry into a Material Definitive Agreement.
On September 17, 2026, Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our” or “us”) entered into separate consent judgments (collectively, the “Agreements”) with the office of the attorney general (the “attorney general”) of 40 states (Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, and Wisconsin) (the “State Parties”) and the District of Columbia. The Agreements, each of which is subject to final court approval in the relevant jurisdiction, resolve the previously disclosed lawsuit filed against the Company on January 4, 2023, by the Office of the New York State Attorney General in the United States District Court for the Southern District of New York and claims related to the previously disclosed multi-state investigation to which the Company was subject involving the attorneys general of the District of Columbia and the State Parties other than New York. In entering into the Agreements, the Company has made no admission of wrongdoing or liability.
Under the terms of the Agreements, the Company will pay an aggregate of $15.5 million to the attorneys general of the State Parties and the District of Columbia (the “Participating Attorneys General”); will pay a total amount of $60 million to a trust account to be used by a settlement administrator selected by a committee of the Participating Attorneys General for the purpose of remediating alleged consumer losses; and will provide debt relief in the form of a waiver of all outstanding balances to certain customers with open accounts as of December 1, 2025, aggregating to an estimated $634,000,000. Such payments and debt relief will not require the Company to record charges beyond amounts previously accrued and disclosed in the Company’s financial statements.
The Agreements require the Company for five years to implement changes to its debt-collection practices for consumer loans originated after December 1, 2025 that meet specified criteria. The Agreements also require, among other things, that, for a seven-year period, the Company issue or require participating dealers to issue additional consumer-facing disclosures regarding vehicle financing, vehicle pricing, and ancillary products and maintain and/or establish policies and practices relating to, among other things, debt relief, affordability‑related protections, dealer oversight and non-use of starter interruption devices. The Company believes these prescriptions and requirements are broadly consistent with regulatory expectations in the automotive finance industry and do not fundamentally alter the Company’s business model or materially affect its business. The Agreements require that the Company provide annual reports addressing the Company’s compliance with the Agreements to a monitoring committee for five years and maintain records necessary to demonstrate compliance for at least three years.
The Agreements provide for the release by the attorneys general of specified claims relating to the matters resolved by the Agreements, subject to stated exclusions.
There can be no assurance as to whether the court in each relevant jurisdiction will approve the applicable Agreement or as to the timing of such approval.
The foregoing description of the Agreements is qualified in its entirety by reference to the copy of the Agreement and the accompanying schedule included in Exhibit 10.1 to this report, which exhibit is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure.
On September 17, 2026, the Company issued a press release relating to the Agreements. A copy of the press release is furnished pursuant to Item 7.01 of Form 8‑K as Exhibit 99.1 to this report.
The information furnished in this report pursuant to Item 7.01 of Form 8-K, including Exhibit 99.1 to this report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||||||||
10.1 | Consent judgment entered into on September 17, 2026, between Credit Acceptance Corporation and the office of the attorney general of the state of Maryland, with a schedule identifying other consent judgments not filed as exhibits to this report in accordance with Instruction 2 to Item 601 of Regulation S-K. | |||||||||||||
99.1 | Press release dated September 17, 2026. | |||||||||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||||||||
Forward-Looking Statements
We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this report that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this report. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed or listed from time to time in our reports filed with the SEC. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CREDIT ACCEPTANCE CORPORATION | |||||||||||
| Date: September 18, 2026 | By: | /s/ Erin J. Kerber | |||||||||
| Erin J. Kerber | |||||||||||
| Chief Legal Officer, Chief Compliance Officer and Secretary | |||||||||||
Exhibit 99.1
CREDIT ACCEPTANCE REACHES RESOLUTION WITH STATE ATTORNEYS GENERAL
Settlement resolves longstanding litigation, clarifies regulatory expectations, and
does not require material changes to the Company’s operations
Southfield, Michigan – September 17, 2026 – Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that it has entered or will enter into consent judgments with the Office of the New York Attorney General and 40 other attorneys general.1 The resolution ends the litigation filed by the New York Attorney General in the United States District Court for the Southern District of New York in 2023, resolves the multistate investigation initiated in 2020, and was reached without any admission of fault or wrongdoing by the Company. Credit Acceptance is pleased that the resolution provides greater clarity to industry participants regarding regulatory expectations and allows the management team to focus on serving customers, supporting dealer partners and executing the Company’s long-term strategy.
Under the consent judgments, the Company will pay $60 million to a consumer relief fund, pay $15.5 million to the participating attorneys general for their investigation, and provide debt relief in the form of a waiver of all outstanding balances to certain customers. The participating attorneys general will administer the consumer relief fund. The monetary components of the resolution will not require the Company to record additional charges beyond amounts previously accrued and disclosed in the Company’s financial statements.
Under the consent judgments, the Company will preserve and supplement our existing controls through consumer-facing disclosures relating to vehicle pricing and ancillary products; affordability-related protections; and dealer oversight requirements. The Company believes these requirements are broadly consistent with our focus on customers and our mission of changing lives, as well as the regulatory expectations in the automotive finance industry and do not fundamentally alter the Company’s business model.
“This resolution provides certainty for our business, our dealer partners and the customers we serve. We believe the provisions we agreed to are constructive, customer-focused and consistent with the direction of regulatory expectations in our industry,” said Vinayak Hegde, Chief Executive Officer of Credit Acceptance. “Importantly, the resolution allows us to keep our full attention on helping consumers who may have limited financing options obtain access to reliable transportation and the opportunity to improve their financial lives over time.”
Credit Acceptance was founded on the belief that credit history should not limit access to reliable transportation. This belief has guided the Company’s approach to serving more than five million customers with limited or no financing alternatives. The Company remains committed to making vehicle financing and the opportunity for financial progress more accessible to consumers who may have limited alternatives.
For media inquiries, contact media@creditacceptance.com. For investor inquiries, contact ir@creditacceptance.com. Consumers may visit our website at www.creditacceptance.com/settlement for additional information.
1 Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, and Wisconsin.
Description of Credit Acceptance Corporation
We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing. Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.
Forward-Looking Statements
We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this report that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this report. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed or listed from time to time in our reports filed with the SEC. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.
Investor Relations: Jay Brinkley
Senior Vice President & Treasurer
(248) 353-2700 Ext. 6739
IR@creditacceptance.com
Media Inquiries: media@creditacceptance.com