American Credit Acceptance Improper Car Repossession $98M Class Action Settlement

American Credit Acceptance agreed to forgive over $98 million in deficient account balances as part of a settlement resolving claims of improper car repossession.

The settlement benefits individuals who received written notice from American Credit Acceptance of the pending sale or disposal of their repossessed or surrendered vehicles between Dec. 2, 2015, and Feb. 11, 2021, whose vehicles were later sold, and who were charged a deficiency balance on their accounts.

The settlement does not benefit individuals who meet this description but who previously reached a court judgment over deficiency balances, who filed for bankruptcy, or who are deceased.

American Credit Acceptance (ACA) is a lending company specializing in connecting consumers with dealers to secure automotive loans. The company partners with over 2,500 dealers and has helped more than 630,000 consumers find affordable vehicle options. 

However, according to a class action lawsuit against the company, ACA failed to comply with California lending laws. 

Plaintiffs claim ACA violated California’s Rees-Levering Automotive Sales Finance Act with insufficient written notices. Then, the company allegedly assessed deficiency balances on customer accounts based on these notices, resulting in credit reports.

The court ordered plaintiffs to arbitrate their claims outside of court, a process that started in 2020. ACA has not admitted any wrongdoing but agreed to forgive over $98 million in deficiency balances as part of the arbitration settlement.

Under the terms of the settlement, around 8,500 accounts with deficiency balances will be wiped clean. As a result, ACA will no longer try to collect on these accounts. 

The company will also request that credit reporting agencies delete any reference to these accounts. This could improve consumer credit scores.

The deadline for exclusion and objection is May 9, 2022. 

The final approval hearing for the American Credit Acceptance improper repossession settlement is scheduled for July 28, 2022.

No claim form is required to benefit from the settlement. Instead, Class Members who do not exclude themselves will automatically receive benefits.

Who’s Eligible

The settlement benefits individuals who received written notice from American Credit Acceptance of the pending sale or disposal of their repossessed or surrendered vehicles between Dec. 2, 2015, and Feb. 11, 2021, whose vehicles were later sold, and who were charged a deficiency balance on their accounts.

The settlement does not benefit individuals who meet this description but who previously reached a court judgment over deficiency balances, who filed for bankruptcy, or who are deceased.

Potential Award

Deficiency balances forgiven. 

Proof of Purchase

No proof of purchase applicable.

Claim Form

No claim form required.

Claim Form Deadline

N/A

Case Name

Jay Sherrard, et al. v. American Credit Acceptance LLC, Case No. 19STCV43101 in the Los Angeles County Superior Court

Final Hearing

07/28/2022

Settlement Website

ACASettlement.com

Claims Administrator

Sherrard v. American Credit Acceptance
c/o Kroll Settlement Administration LLC
P.O. Box 225391
New York, NY 10150-5391
1-833-910-3609

Class Counsel

Brandon A. Block
LAW OFFICES OF BRANDON A. BLOCK, A PROFESSIONAL CORPORATION

Alexander Trueblood
TRUEBLOOD LAW FIRM APC

Defense Counsel

Scott Hyman