On January 4, 2023, the Consumer Financial Protection Bureau and the New York State Attorney General’s Office announced the filing of a complaint against Credit Acceptance. The lawsuit alleged that Credit Acceptance, a subprime auto lender, hid the true costs of its borrowings, used aggressive debt-collection tactics, and violated New York usury laws on interest-rate limits and other investor-protection laws.
On this news, the price of Credit Acceptance’s shares fell $52.69, or over 11%, to close at $403.49 per share on January 4, 2023, damaging investors.
