U.S., New York regulators sue subprime auto lender Credit Acceptance

Credit Acceptance Corp (CACC.O) has been sued by the U.S. Consumer Financial Protection Bureau and New York Attorney General Letitia James, who accused the large subprime auto lender of steering tens of thousands of low-income borrowers into high-interest car loans.

The lawsuit seeks to end Credit Acceptance’s alleged abusive and deceptive practices, reform or eliminate existing loan agreements, and collect restitution for borrowers, James said in a statement.