Johns Creek residents who took out subprime auto loans from Credit Acceptance Corporation may be eligible for debt cancellation or cash restitution under a $694 million multistate settlement.

Georgia Attorney General Chris Carr announced Monday, Sept. 21, that the state joined 40 others in the agreement with the Michigan-based lender, Atlanta News First reported. The deal includes more than $28.19 million in relief for more than 4,890 Georgia consumers.

The settlement resolves allegations that Credit Acceptance, one of the nation's largest subprime auto finance companies, made car loans it knew or should have known borrowers could not repay. Georgia's lawsuit alleged the company engaged in deceptive and abusive practices when offering subprime loans to Georgia consumers, according to a WSB-TV report carried by Yahoo Finance.

Credit Acceptance does not admit wrongdoing.

The company used a proprietary scoring system to predict how much it would collect on each loan, according to attorneys general involved in the case. In some cases, Credit Acceptance predicted borrowers would not repay even the principal, the Chicago Crusader reported. Sarah Mancini, an attorney with the National Consumer Law Center, told WSB-TV that attorneys general alleged the company knew with near-certainty some borrowers would default but made the loans anyway for profit.

What eligible consumers receive

Nationwide, the settlement breaks into three categories, according to the Arkansas Attorney General's office:

  • $388 million in debt relief for consumers whose cars were repossessed on loans made between Nov. 1, 2015, and Nov. 30, 2025.
  • $246 million in debt relief for consumers whose cars were not repossessed, allowing them to keep their vehicles.
  • $60 million in cash restitution for consumers who received particularly risky loans.

Georgia will also receive a $373,562.28 payment from the settlement.

The agreement takes effect Nov. 2. Customers eligible for debt relief will be notified by Credit Acceptance directly. Customers eligible for cash restitution will be notified by a claims administrator. No action is required from consumers before then.

New protections going forward

The settlement also imposes new rules on Credit Acceptance for future lending. For seven years, the company must cap vehicle prices at 109% of retail book value for certain borrowers and block dealers from inflating prices based on a buyer's credit score, according to the Colorado Attorney General's office.

Starting Nov. 2, consumers with certain risky loans made beginning in December 2025 will get "off ramps" if their loans fail quickly: 95% debt relief and protection from collections lawsuits. Those protections last five years.

Credit Acceptance CEO Vinayak Hegde said in a letter posted on the company's website that the settlement "includes certain commitments related to customer disclosures, dealer oversight, and consumer protections, many of which reflect practices we already have in place today."

The multistate investigation began in 2020. The Consumer Financial Protection Bureau (CFPB) had filed its own case against Credit Acceptance in 2023 but permanently dropped it in 2025, according to the Washington Informer.

Consumers with questions about the settlement can call 1-800-634-1506.