New York Attorney General Letitia James filed a lawsuit Wednesday against Credit Acceptance Corporation, a subprime auto lending giant she says makes its business model out of lying to and ripping off New Yorkers buying used cars.
The AG, who filed the suit in Manhattan federal court with the federal Consumer Financial Protection Bureau as co-plaintiff, says Credit Acceptance Corporation (CAC) has for years made a financial killing off of a predatory business model, dangling deceptive high-interest loans to low-income consumers in the auto market, bundling those bogus loans into securities sold to investors, and eventually repossessing nearly half the cars purchased in New York with its financing.
