Summary of “How Credit Acceptance Consumed Detroit With Debt”

Credit Acceptance filed at least 32,799 collection suits against 39,714 Detroit car buyers, more than 4 percent of all available civil cases.
The chart below represents Open Credit Acceptance Debt Collection cases has not yet satisfied the judgement(s) against them).
What’s clear is that, in recent years, Credit Acceptance has sharply increased the number of debt collection cases it has filed in the Motor City-and in a state where its practices have been called into question before.
Credit Acceptance had also been accused in the past by a suburban Detroit court of providing insufficient documentation to support its requests to garnish borrowers’ wages.
“While debt collection is an important way creditors recoup their losses, when a creditor such as Credit Acceptance relies on debt collection for such a significant portion of its loans, that is an indication that there are problems with the lending practices and loan terms,” Stifler, of the Center for Responsible Lending, said.
Credit Acceptance’s debt collection efforts in Michigan ran into a roadblock in 2005, when a local Metro Detroit court returned “Numerous” garnishment requests “Loaded with apparent mistakes to the attorney who had filed them” on behalf of the lender, according to Human Rights Watch.
Once the Howard Katz case was squared away, records show Credit Acceptance started filing more debt collection suits each year against Detroit residents.
Attorneys in the Detroit area said that conditions in the city are ripe for Credit Acceptance to mount such a high number of cases.

The orginal article.