A Michigan-based auto credit company has agreed to issue credit to approximately 2,100 consumers who used the financing company in the purchase of a vehicle, Kansas prosecutors announced today.
Kansas Attorney General Derek Schmidt, Sedgwick County District Attorney Marc Bennett and Johnson County District Attorney Steve Howe said they jointly have entered into a settlement with Credit Acceptance Corp, based in Southfield, Mich.
The prosecutors accused the company of improperly disclaiming warranties in contracts with Kansas consumers in violation of the Kansas Consumer Protection Act. The company claimed the disclaimer was an inadvertent error. Contracts issued by the company through local car dealerships between November 2012 and December 2015 contained the improper disclaimer.
An estimated 2,100 consumers who still have open accounts with the company each will receive a $250 credit to their accounts, along with a notice that the implied warranties are not disclaimed. The company did not admit to violating the Kansas Consumer Protection Act but nonetheless agreed to credit consumers’ accounts and pay the investigation costs of the state of Kansas and Sedgwick and Johnson County District Attorneys’ offices, according to the announcement.
Affected consumers will be contacted by U.S. mail. Additional information on recent consumer protection settlements is available on the attorney general’s consumer protection website at www.InYourCornerKansas.org or by calling 800-432-2310.