A national subprime auto lender has agreed to pay more than $27 million to settle allegations that it took advantage of thousands of Massachusetts borrowers, the state attorney general’s office said yesterday, the Associated Press reported. The settlement with Credit Acceptance Corp. in Suffolk Superior Court will provide debt relief and credit repair to consumers, according to a statement from Attorney General Maura Healey. “Thousands of Massachusetts consumers, many of them first-time car buyers, put their faith in CAC to help them with an auto loan, but were instead lured into high-cost loans, fell deeper in debt, and even lost their vehicles,” she said. “With this significant $27 million settlement, eligible Massachusetts drivers who have been suffering under the weight of a crushing car loan due to CAC’s deceptive practices will be able to receive relief and avoid new defaults.” More than 3,000 borrowers across the state are expected to be eligible for settlement funds, many of them in Boston, Springfield, Worcester and Brockton. The settlement also requires the company to make changes to its loan handling practices.
