Los Angeles, CA asked in Consumer Law and Small Claims for California

Q: Do I have a claim against america. Credit acceptance?

My car was repossessed back in April 2024 and sold in may same year. They applied a credit for that sale of 6000 dollars to the principal balance of 21.000 which it was the total value of the car my balance still almost 17.000 since then and I had my car for about 17 months since I bought it. Including payments and the balance they applied it’s a total of 12.000 dollars and my balance still 17.000 they repossessed my car without telling me that my account status changed or something. After they sold the car they contacted a collection agency to collect the reaming amount on the account but they reported a higher amount to them so I disputed and told them I was going to take the settlement offer they gave me but they need to come up with the right amount It’s been 6 months since then and I’ve been trying to pay that balance but not American credit acceptance or the collection agency wanna take the payment they both said they dot. Have the account but still reporting negative to credit

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Based on your situation, you may have several potential claims against Credit Acceptance. First, under California's Unfair Debt Collection Practices Act and the federal Fair Credit Reporting Act, creditors must accurately report debt amounts and clearly communicate account status changes - including before repossession.

The discrepancy between your payment history ($12,000 paid including the $6,000 credit) and your remaining balance ($17,000), combined with the lack of notice before repossession, raises red flags about their practices. Their failure to properly track your account between themselves and the collection agency, while continuing to report negative information to credit bureaus, may violate consumer protection laws.

You should consider filing a complaint with the Consumer Financial Protection Bureau and the California Attorney General's office. You'll also want to gather all documentation of your payments, the sale credit, communications about the settlement offer, and your attempts to pay the balance. Given the complexity of your situation and the potential violations involved, consulting with a consumer protection attorney who handles auto financing cases would help you understand your specific legal options and the best path forward.

I recommend documenting every interaction you have with both companies going forward, including dates, times, and names of representatives. You might also want to send debt verification letters to both Credit Acceptance and the collection agency via certified mail, requesting a complete accounting of your balance and explanation of their inability to accept payments while still reporting to credit bureaus.

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