Attorney General Todd Rokita continues campaign of holding bad actors accountable, secures nearly $34.7 million for Hoosier consumers in auto lending settlement

Attorney General Todd Rokita announced today that his office has secured a multistate settlement with Credit Acceptance Corporation (CAC) that will deliver nearly $34.7 million in cash and debt relief to Hoosier consumers and the State of Indiana. The settlement resolves allegations that CAC originated car loans consumers could not reasonably afford and failed to stop dealers from packing those loans with unwanted add-on products. 
 
“Sometimes Hoosiers need a loan to buy a car. That’s a major purchase, and they deserve to be treated honestly when they finance it,” Attorney General Rokita said. “Cars are already an expensive purchase, and when bad actors raise the cost by deceptively packing loans with products people don’t want—and creating loans that the lenders know can’t be repaid—the financial damage can be devastating. Thankfully, the settlement my team and I secured helps make it right, and Hoosiers who were taken advantage of will get their hard-earned money back or see their loans forgiven.”
 
CAC is one of the nation’s largest auto finance companies, providing car loans to consumers with limited or impaired credit histories. According to the settlement, CAC assigned each loan a proprietary “score” predicting how much the company would collect. 
 
Investigators found that many of CAC’s low-score loans were ones consumers could not reasonably afford — including loans where CAC predicted the consumer would not even repay the principal. Many of those loans ended in default, repossession, and auction. 
 
The settlement, effective November 2, 2026, also addresses dealer “packing” of Vehicle Service Contracts (VSC) and Guaranteed Asset Protection (GAP) products onto CAC loans. CAC’s dealer compensation methods and lack of reasonable dealer oversight led dealers to aggressively sell those products when consumers were unaware they were buying them, or were led to believe they had to buy them to get financing.

Eligible Hoosier consumers will receive cash restitution by check from the settlement administrator. They do not have to file a claim or take any other action. More than 1,700 Hoosiers will receive direct restitution, and nearly 3,000 will receive loan forgiveness. Each consumer’s amount will be different and based on a formula calculating how much that person was overcharged.
 
In addition to the money coming back to Hoosiers, CAC must change how it does business. Key provisions include:

• “Off ramps” for certain risky loans made starting in December 2025 that fail quickly, including 95% debt relief and a ban on collections lawsuits against qualifying consumers, for five years beginning November 2, 2026 
• A process to prevent unlawful VSC and GAP packing, including stronger pre-purchase disclosures, a post-purchase notice with easier cancellation, and dealer monitoring 
• Pre-loan disclosures about the risks of default and the value of the vehicle 
• A seven-year price cap of 109% of retail book value for certain consumers 
• Processes to prevent dealers from raising car prices because of creditworthiness or above advertised prices

“This is not all about just getting money back, but also about changing behavior and embarrassing these corporations publicly for these shameful schemes,” Attorney General Rokita said. When they take advantage of Hoosiers, they need to answer for it with their pocketbook and in how they operate in the future."
 
Hoosiers are encouraged to contact the Office of the Indiana Attorney General about any suspected scams or scam attempts. Consumers can file a complaint by visiting indianaconsumer.com  or calling 1-800-382-5516.