South Carolina consumers are expected to receive millions of dollars in restitution and debt relief under a $694 million multistate settlement involving Credit Acceptance Corporation, one of the nation’s largest auto finance companies.
South Carolina Attorney General Alan Wilson announced Sept. 18 that the state joined 40 other states in the settlement, which resolves allegations that CAC originated certain auto loans the company knew or should have known consumers could not afford. The settlement takes effect Nov. 2, 2026.
South Carolina is expected to receive approximately $1.3 million in restitution for about 921 consumers, averaging roughly $1,400 per consumer. An additional $11.8 million in projected debt relief is expected to benefit about 1,292 South Carolina consumers, including some who will be able to keep their vehicles. The state itself will receive $261,728.66 from the settlement.
Nationwide, CAC will provide $388 million in debt relief to certain consumers whose vehicles were repossessed and $246 million to consumers whose vehicles were not repossessed. The agreement also includes $60 million in cash restitution and a $15 million payment to participating attorneys general.
The settlement requires CAC to provide additional disclosures about loan risks, strengthen oversight of dealers and prevent unwanted Vehicle Service Contract and Guaranteed Asset Protection products from being added to loan contracts.
For certain qualifying loans issued beginning in December 2025, consumers may receive 95% debt relief if the loans fail quickly. CAC also will face vehicle-price limits for certain consumers and must take steps to prevent dealers from charging different prices based on creditworthiness.
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