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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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90 thoughts onAmerican Credit Acceptance Improper Car Repossession $98M Class Action Settlement
I had a 2012 Toyota tacoma that I was in bankruptcy but it was kicked out because I lost my income, American Credit Acceptance, said my vehicle was charged off and I owed $20,000. I am lost because the insurance company paid them $12,901 and and my loan would have been up in 2026 a 6 year loan but the vehicle was total lost. Now they back with interest going up every day. I got in touch with the bbb last year on them and the lady from American credit acceptance told BBB for me to call her. But she never answered or called but for weeks or months I feel I should get some money back I give over $35,000 for a 2012 Toyota tacoma in 2020 and it got total lost October 2024 . I feel what they say I owe them they should definitely delete and give me $10,000 of my dollars back.
I a victim of American Credit Acceptance, on September 22,2024,repossessed my property illegally, and trying to get me pay $20,000 more after$10,000 down payment and $10,900 at $644 monthly For another year,how you getting me to pay surplus you owe to me
I financed a vehicle from Auto Smart via American Credit Acceptance. They sell customers $5000 extended warranties with car contract. The warranties aren’t honored because the vehicles have other types of damage that cause mechanical break down. Then Auto Smart cancels the extended warranty without you knowing and getting the money for the warranty. Now I’m stuck with a vehicle that has thick smoke coming out the dual exhausts and a high car payment. When I called finance company and Auto Smart. They ignored my concerns. They said they will just repo the car and I will still pay the loan. Within two weeks the vehicle had thick smoke coming out dual exhaust upon start ups. Did I mention when the car was driven to me to take home off dealership lot…. The driver had caused damage to the bumper. That hasn’t been fixed either as they promised. Financed car July 2024. It’s now December 2024. I have been to the Dealership numerous times and they say the mechanic is very busy. They were only able to do an oil change in hopes it helps. There’s water coming into car where the bumper damage is. Auto Smart doesn’t care. All their contracts should be investigated and the customers talked to sharing their experience in 2024. I don’t believe the need to pay a high car payment for a vehicle that has a damaged engine and bumper. I guess American Credit Acceptance repoing the vehicle makes them feel good about themselves while financially stealing from people.
My 2015 KIA OPTIMA THROUGH KIA OPTIMA, MY INSURANCE COMPNAY PAID FOR WHAT THE CAR WAS WORTH, CREDIT ACCEPTANCE WAS NOT HAING IT, i BOUT THE CARE FOR ORGINIAL 22,000 AND IN DECEMBER OF 2020 MY CAR WAS SMODERED TO MY DRIVE WAY I WAS NEVER LATE ON MY CAR NOT, I OWED 10,000 NOT ON MY CREDIT REPORT THEY HAVE ADDED ALL THE CRAP AND NOW ITS 27,000 THE ADDRESS IS WRONG ON THE ORIGNALLY DOCUMENTS, THEY ARE RUNNING MY JOB I HAVE A TOP SECRET CLEARANCE MY JOB IS IN JEAPORIDY AND I NEED HELP