Bend, Oregon – In a decisive move to protect Oregonians from abusive subprime auto financing, Attorney General Dan Rayfield announced a $694 million settlement with Credit Acceptance Corp. The agreement, joined by attorneys general from 40 other states, will return more than $754,000 directly to Oregon residents and impose strict reforms on the lender’s practices.
Direct relief for Oregon families
The state’s share of the settlement includes $548,431 in debt relief for 58 Oregonians, $96,142.35 in cash restitution for 67 consumers, and $109,772.03 paid directly to the state treasury. Rayfield emphasized that the money will help families escape the debt traps created by unaffordable vehicle loans.
“This settlement holds Credit Acceptance accountable for years of predatory lending and dealer abuse and puts real debt relief back in the hands of the Oregonians who were impacted,” Rayfield said. “For struggling consumers, these kinds of loans can become a debt trap that is almost impossible to escape.”
National impact and broader consumer protections
Across the nation, the deal provides $60 million in cash restitution for borrowers who received especially risky loans between Nov. 1, 2015 and Nov. 30, 2025. Credit Acceptance must also deliver $388 million in debt relief to borrowers whose vehicles were repossessed and $246 million to those who kept their cars, ensuring that thousands of families can retain reliable transportation.
In addition to monetary relief, the settlement requires Credit Acceptance to implement injunctive reforms for the next seven years. The company must cap vehicle prices at 109 % of retail book value for certain high‑risk consumers and prevent dealers from inflating prices based on credit scores. New pre‑loan risk disclosures and clear post‑purchase cancellation processes will be mandated, giving consumers transparent information about add‑on products such as Vehicle Service Contracts and Guaranteed Asset Protection.
Off‑ramp options for the most vulnerable borrowers
For high‑risk loans originated after Dec. 2025, Credit Acceptance will offer an “off‑ramp” program. Qualifying borrowers will receive 95 % debt relief, and the lender will be barred from filing collection lawsuits against them for five years, providing a safety net for those most likely to default.
The settlement is set to become effective on Nov. 2, 2026. Credit Acceptance will directly notify eligible customers, while an independent claims administrator will handle cash restitution claims.
Why this matters for Oregon
Oregon’s participation in the multistate action underscores the state’s commitment to safeguarding families from exploitative financial practices. By securing both immediate financial relief and long‑term industry reforms, the Attorney General’s office is reinforcing consumer‑protection principles that align with traditional family values and personal liberty.
Local residents can expect clearer loan terms, reduced risk of repossession, and a stronger ability to keep their vehicles—a critical asset for work, school, and family life. The settlement also sends a clear message to lenders that predatory tactics will not be tolerated in Oregon or across the nation.
Next steps
Consumers who believe they may be eligible should watch for direct communications from Credit Acceptance or the independent claims administrator. Additional information will be posted on the Oregon Attorney General’s website as the effective date approaches.
Original reporting: KTVZ (Central Oregon) — read the source article.
