Top Class Actions  |  April 25, 2022

Category: Closed Class Actions

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Low view of a car being loaded onto a tow truck - American Credit Acceptance settlement
(Photo credit: Thamkc/DepositPhotos.com)

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.

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

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
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

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84 thoughts onAmerican Credit Acceptance Improper Car Repossession $98M Class Action Settlement

  1. Krystal Alonso says:

    If it’s not too late , add me .. they have been screwing me for years now. I have paid on time or even months in advance and the due amount never goes down .

    1. Alexis Lawson says:

      We need to open up a new lawsuit against them.

      1. Renita Brewer says:

        This is so true!!!

  2. MARION ANNETTE CATLEDGE says:

    I applied for the suite action against Credit Acceptance in February of 2021. Its still on my credit report as of today owing more than I originally purchased said vehicle. The car KIA Optima caught on fire in December of 2020, my insurance paid out, and KIA manufacture wrote in depth a letter to them, and it went on deaf ears, I bought the car in 2017, and in 2019 I asked for the pay out and it was close to 20,000 after I was paying on it for four years. and my balance of as of today is over 22,000. They sent out not one not two but three car repose the car was at the KIA headquarters on why the car caught on fire. I have disputed this dink on my credit report but everytime i do it, the balance gets bigger. I have tried to call them, all I can say is rude. PLEASE HELP ME!!!!!!!!!!!!!!!!!!

    1. Marion A. Catledge says:

      PLEASE ADD ME AGAIN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    2. Shelly M. says:

      I have a very similar story… car was totaled on April6,2020. I notified them of it being totaled and insurance didn’t cover. They sold it as it was and I never heard a thing.. fast forward to almost 3 years later it is still OPEN on my credit report and every month they increase my loan amount, and all I’m given is the run around when My balance now is 5k more than it was 3 years ago and I tried to dispute it, but it went up again. Very very frustrating.

  3. Nikki Turner says:

    Add me

  4. Nikki Turner says:

    American Acceptance when I made a payment on time that will report on my credit report I was late and charging high fees for years I reported to State Attorney General office in South Carolina Better business bureau I knew they were fraud

  5. Markquwale Gilley says:

    It happened to me in 2018

  6. Gabriel Parra says:

    Im still trying to pay them off and credit acceptance took the car. I just want them out of my life

  7. April simons says:

    Please add me my car was responded by twice!! First time it was nearly $4,000, second time estimate of 1,$400

    I was able to get my car back both times. They charged me extremely high penalty late fees, ect. I was able to get my car back twice.

  8. Melanie says:

    Does anyone know if any of us will receive any money from this settlement.

  9. Dani Jackson says:

    Back in 2017 I had purchased a car and I wasn’t even a month behind actually was caught up and they came and repod me and said I owed 10,000 and I couldn’t get in touch with them afterwards to get my car back . I’ve called the law firm a few months ago when I received the letter . Hopefully I can get justice for my case

  10. Sharon Hayes says:

    Add me

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