Credit Acceptance agrees to $60m consumer fund and estimated $634m debt waiver

Credit Acceptance Corporation has agreed to judgments with 40 states and Washington, D.C., providing a $60m consumer fund and an estimated $634m waiver of balances on certain auto-loan accounts.

The company's Form 8-K also provides for $15.5m of payments to the participating attorneys general. The judgments are not final. Each requires court approval in its jurisdiction.

The terms require five years of changes to specified collection practices and seven years of added disclosures and related policies. The New York Attorney General said more than 55,000 consumers will receive debt relief. Credit Acceptance admitted no wrongdoing or liability.