Wisconsin News

Wisconsin consumers, state to receive more than $11M from auto finance settlement

September 22, 2026

Wisconsin consumers and the state will receive more than $11 million as part of a multi-state settlement with one of the nation’s largest auto finance companies, the Wisconsin Department of Justice announced Monday.

Under the settlement, Credit Acceptance Corporation, or CAC, will provide $694 million in cash and debt relief to consumers connected to their car loans, the state Department of Justice says. But the deal does not require the company to admit fault or wrongdoing.

Wisconsin consumers will receive an estimated more than $10 million in debt relief and $959,988 in restitution, while the state will receive $218,319, according to the state Department of Justice.

The state DOJ says the settlement resolves allegations that CAC gave loans to people that the company knew they could not afford, resulting in defaults and vehicle repossessions.

A multi-state investigation into the company launched in 2020. The New York Attorney General filed a federal suit against the company in 2023.

Beyond providing relief to consumers, the deal requires CAC to disclose loan risks to customers, provide consumer protection and guard against dealers “packing” the company’s contracts with other unwanted vehicle service or asset protection products, the Wisconsin DOJ said.

“People deserve to be aware of and not misled about the terms of a large purchase like a vehicle,” Wisconsin Attorney General Josh Kaul said in a statement. “This settlement will put stronger protections in place going forward for loans from Credit Acceptance Corporation.”

In a statement, Credit Acceptance CEO Vinayak Hegde said the deal gives the company and its customers “certainty.”

“We believe the provisions we agreed to are constructive, customer-focused and consistent with the direction of regulatory expectations in our industry,” he stated. “Importantly, the resolution allows us to keep our full attention on helping consumers.”