Credit Acceptance Subpoenaed by DOJ
Credit Acceptance has received a civil investigative subpoena from the U.S. Department of Justice, which requested that the finance company produce certain documents related to subprime auto lending.
SOUTHFIELD, Mich. — In a Dec. 9 regulatory filing, Credit Acceptance Corporation revealed that it has received a civil investigative subpoena from the U.S. Department of Justice (DOJ). The subpoena requires the finance source produce certain documents related to auto lending practices in the subprime market.
Earlier in the month, Credit Acceptance received a civil investigative demand from the Office of the Attorney General of the Commonwealth of Massachusetts related to the origination and collection of nonprime auto loans in the state.
“The company intends to cooperate with these inquiries,” the filing read, in part.
Credit Acceptance is not the first lender to receive subpoenas related to subprime auto lending. The Consumer Financial Protection Bureau (CFPB) has issued similar requests to Santander Consumer USA and GM Financial in recent months.
Earlier this month, Toyota Motor Credit Corp. and American Honda Finance Corp. revealed in a regulatory filing that they could face an enforcement action from the CFPB and the U.S. Department of Justice. The captives said the two agencies allege that their auto lending practices — particularly policies that allow dealers to mark up consumer interest rates — resulted in discriminatory pricing of auto loans.
Originally posted on F&I and Showroom
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