Hawaiʻi borrowers are expected to receive nearly $945,000 in restitution and canceled debt under a proposed multistate settlement with subprime auto lender Credit Acceptance Corporation, according to a state announcement issued Wednesday.
The Hawaiʻi Department of Commerce and Consumer Affairs said eligible residents are projected to receive almost $115,000 in direct payments and nearly $830,000 in debt relief. The state also expects about $112,000 for consumer-protection enforcement and education. The agreement still requires court approval, and officials said a claims administrator will contact eligible consumers if it is approved.
The settlement resolves allegations that Credit Acceptance, which finances vehicle purchases for borrowers with limited or impaired credit, approved loans it knew or should have known consumers could not afford. The states also alleged that participating dealers sometimes added unwanted vehicle-service contracts and guaranteed-asset-protection products. The company has denied wrongdoing; Reuters reported that its chief executive described the agreement as a constructive resolution consistent with regulatory expectations.
Nationally, the proposed deal would provide as much as $60 million in cash restitution and up to $634 million in debt forgiveness, plus payments to participating attorneys general. A California filing says approximately $388 million of the debt relief is designated for borrowers whose vehicles were repossessed, while as much as $246 million would cover accounts tied to vehicles that were not repossessed. New York’s attorney general said the relief could reach more than 55,000 consumers across the participating states. The bipartisan coalition includes 40 state attorneys general, giving the agreement national reach while leaving each state to identify and notify its own eligible borrowers.
The agreement also changes how the lender can handle higher-risk loans. For certain loans made after December 2025, Credit Acceptance would have to provide 95% debt relief when a loan fails early and would be barred from filing a collection lawsuit. Those provisions would remain in effect for five years beginning Nov. 2, 2026, according to Hawaiʻi’s release.
Other restrictions would require clearer disclosures before a borrower signs, including information about the vehicle’s book value and the risk that the loan could fail. For seven years, the company would be prohibited from financing a vehicle price above 109% of retail book value for certain borrowers. It would also have to monitor dealers, cancel relationships with dealers that repeatedly violate the rules and avoid increasing vehicle prices because of a customer’s creditworthiness or above an advertised price.
For Hawaiʻi consumers, the settlement’s practical effect depends on final judicial approval and the administrator’s eligibility review. The state advised borrowers with questions to contact Credit Acceptance at 800-634-1506, but said consumers do not need to take immediate action to preserve a claim. The projected local totals distinguish Hawaiʻi’s share from the broader national figures and provide a measurable benchmark for the relief ultimately delivered.
