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Credit Acceptance Suit Suspended Over Possible Funding Issue

Letters From the August 21/28, 2023, Issue

Suburban blight… Predatory financing… Dancing to AIPAC’s tune (web only)… A commitment to liberation (web only)…

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Judge puts US, New York predatory lending lawsuit against Credit Acceptance on hold

A federal judge on Monday put on hold a predatory lending lawsuit against Credit Acceptance Corp by the U.S. Consumer Financial Protection Bureau and New York Attorney General Letitia James, over objections from both regulators. In staying the lawsuit, U.S. District Judge Jennifer Rearden in Manhattan cited a separate case before the U.S. Supreme Court over whether the CFPB's funding mechanism is constitutional. A ruling against the CFPB could imperil actions by the consumer watchdog since it was created as part of the Dodd-Frank Act in 2010, in response to the global financial crisis.

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