Iowans sued by Credit Acceptance Corp.
Credit Acceptance Corp. is a subprime lender who purchases auto loans. These loans are commonly made at higher interest rates on used autos sold without warranties. Unfortunately, many consumers are stuck with defective vehicles and loans they cannot afford.
If a consumer falls behind on payments, Credit Acceptance has the auto repossessed. The auto is then sold at a dealer only auto auction for far less than the retail value of the vehicle. Credit Acceptance goes after the consumer for the balance of the loan after crediting the meager price it received at auction. The process can be extremely unfair to those who can least afford it.
If it does not get paid, Credit Acceptance sues the consumer, obtains a judgment that does further damage to the consumer’s credit, and then attempts to collects using methods that include wage or bank garnishments.
NEVER ignore a Credit Acceptance repossession lawsuit without talking to an attorney. There may be defenses, such as:
- The vehicle was misrepresented by the selling dealer.
- The vehicle was defective at the time it was purchased by the consumer.
- The repossession resulted in a “breach of peace.”
- Law enforcement assisted in the repossession.
- Proper notices were not given.
- The sale of the vehicle was not commercially reasonable.
Even if there are no traditional defenses, these claims can frequently be settled for less than the amount demanded, in reasonable payments, without a judgment or wage garnishment.
Don’t let Credit Acceptance take money you need to support your family. Contact us for a free consultation by phone, email or both.
Representing yourself is an option–or is it?