Many auto lenders offered deferrals to borrowers during Covid. The country's biggest subprime lender did not.
"I have been paying for this car for four years — over $12,000 — and I couldn't even get a deferment," Williams said. The car died in December 2019, she said, but about $2,000 on the loan remains outstanding.Cars are essential for people to get to jobs, grocery stores and vaccination centers, but the government has provided no federal assistance earmarked for auto loans during the pandemic.
Credit Acceptance, founded in 1972, is the country's largest standalone subprime auto lender; it generated $1.7 billion in revenue last year. Since the pandemic began, the company's stock has surged by over 50 percent. Credit Acceptance awarded stock grants to seven top executives worth an estimated $55 million, regulatory filings show.
From January 2018 to the middle of last month, the company said, CFPB data showed that complaints solely about its loans totaled 585. That made it No. 5 on the list, behind Santander Consumer USA, Ally Financial, Wells Fargo and Capital One, all much larger companies. Those practices inflate the final cost of a vehicle, the Massachusetts lawsuit alleged. From 2013 to 2019, the average Credit Acceptance customer in the state wound up paying about $20,000 for a used car, more than 2½ times the vehicle's cost to the dealer of about $7,800.
Having a car payment is stupid.....get a cash car $1500 or $2000
If you get any kind of loan with a poor credit rating, the writing is on the wall as far as how much leniency you can expect paying it back. If you already have a bad history paying back loans, and yet keep taking out loans, this is what will happen. This is how the world works.
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