CFPB Drops Credit Acceptance Litigation

AFSA is pleased that the CFPB has dropped its suit against Credit Acceptance Corporation. From the start, this litigation was a clear example of the CFPB’s attempt to reverse well-settled law and invent new requirements that were contrary to existing statutes and regulations. As AFSA and others pointed out in an amicus brief written by Troutman Pepper Locke:

“The CFPB has overreached from its inception, taking unsupported legal positions, and retroactively changing rules applicable to providers of consumer financial services.”

The filing also noted that the legal theories asserted by the Bureau conflict with properly enacted statutes and regulations and go beyond the CFPB’s authority. Furthermore, the filing notes, the CFPB’s action does not allege any actual fraud or consumer harm.

AFSA President-elect Celia Winslow added, “Continued pursuit of this action would have limited the availability of auto financing and deprived those most in need of financing from being able to acquire the cars they need to get to school and work.”