Complaint Review: Credit Acceptance/ tip Top Used Cars

Hello All!

This is the first post I have ever placed on Rip-Off Report although I have read many. After looking up Credit Acceptance on the search box, I found many of these reports to be absolutely ridiculous! Please understand that I too, am a consumer and understand how people feel when they assume they have been wronged by a merchant. I wouldn't want this to happen to me.

But let's understand what the real deal is. Everyone who needs the assistance of Credit Acceptance is in the same boat. BAD CREDIT.

Credit Acceptance takes the risk of financing people who have repossessions, charge-offs, foreclosures, and other damaging credit items. But the fact is that Credit Acceptance doesn't care about your credit and STILL say "Yes, we'll give you a chance".

Do you think you are DESERVING of 2.9 percent interest on a 2009 car when you have a repossession, sometimes two or three, and can't even pay for your cable bill or Visa cards? Of course not! Neither am I!

The reason I am writing this is because I am absolutely sick and tired of people getting on their soapboxes and screaming out that finance companies and car dealers are the devil when they call you because you are late with your payment. (Especially sub-prime lenders and used car lots)

I am sympathetic to the person who had good credit, lost his/her job and couldn't find work so that's why credit went bad. I am, however, NOT sympathetic to the person who burned 2, 3, or 4 different auto lenders, credit cards, cable companies, and cell phone carriers just because they "didn't want to" or "didn't feel like" paying for their obligations.

This is what people have been reduced to. EVERY SINGLE DAY I deal with people who have such bad credit that you would be afriaid to even lend a $1.00 for a soda.

Bottom line.....if you sign up for a bad car, then that's an issue between you and the car dealer. Any dealer who knowingly sells a bad car is a bad dealer. But the lender (Credit Acceptance) is NOT to blame.

Point the finger at the one who did you wrong. Not the one who gave you another chance.

-John

I am a current customer with Credit Acceptance and have been since 2005. I paid off my first car and upon signing with the dealer on another Car in 2007, Credit Acceptance lowered my intrest rate by 2% because I had always made my payments on time. Credit Acceptance gives second...even third chances to people who cannot manage their money. All of you people complaing that you have been wronged, had your car's repossesed, or recieved harrasing phone calls should be ashamed of yourselves. You have no one to blame but yourself. In the 4 years I have been with Credit Acceptance there was only 1 time where I was having car trouble and could not afford to make my payment on time. I called them days in advance and asked, since I had never been late with a payment, could they extend me 2 more weeks. They did with no issue. Credit Acceptance has improved my credit, I now have credit cards and my credit score has gone from low 500's to mid 600's and it keeps getting higher and higher.

To sum up;

Yes Credit Acceptance charges HUGE Intrest rates (some over 20%)
Yes Credit Acceptance will bother the heck out of you if you fail to pay your loan obligation.
Yes Credit Acceptance will repossess your car if you fail to pay your loan obligation

The only thing I do not like about Credit Acceptance is that they will not re-finance a loan for lower monthly payments.....I cant say that I blame them. Their customers have bad track records and they are trying to make up as much money as they can before they get screwed....its only a matter of time before scum like us take advantage. Seek help at Debtors Anyonomous...it helped me and it can help you too. It is easy to see the folly of your ways when you have a $400 car payment every month.


Welcome to the real world! Improve your credit score and your intrest and monthy payments will drop next time you buy a car. Most importantly, don't blame others for your mistakes. If enough people fail to pay their loans there will be no more companies out there to lend money....just look at what is going on with the banks!

Hi, I feel your pain, but being upset with credit acceptance would be like blaming your mortgage company because they will not come out and fix your leaky pipes. I deal with Credit Acceptance as well as around 20 other lenders, and that is what they are lenders that provide the money for the vehicle you purchased and all they want is you to pay them back. They did not promise to fix anything for you, you are not keeping your part of the deal if you don't pay them, they have absolutly no control over the car you chose to buy and when mechanical parts fail.

The reality is that you most likely have credit problems or you would not have been referred to credit acceptance and should be grateful that they would give you the opportunity to finance a vehicle that you could not otherwise have bought. I know you have paid more in financing for the vehicle that you would have liked to but it costs to have bad or no credit. Pay for it and get your credit worthiness up and next time you will save a lot of money on purchases that you finance. Cars are mechanical and mechanical parts will always fail sooner or later. Like I said I feel your pain but instead of filing a report against a company that was going out on a limb and and financed a vehicle when no one else would and now you are made at them because that vehicle had mechanical failures. Maybe you should be filing a report againts GM, thay are the ones that built the car.

There is some very useful information about used car sales on the FTC website. Basically, there are notification requirements for anyone who sells 6 or more vehicles within a 12 month period.

There is a helpful booklet that you can download from the FTC website at:

http://www.ftc.gov/bcp/conline/pubs/buspubs/usedcarc.pdf

Hope this helps you and others.

Each state has it's own rules.

As I've stated before, here in NY State there is NO "as is" sale of a used car if the car is being purchased (from a dealer or any private individual who sells 6 or more cars during a 12 month period) for the purpose of driving it on public roads-there is a minimum warranty that all auto dealers MUST comply with or face criminal and civil penalties.

Violators may be sued and prosecuted.

This is something I tried to figure out in law school (what recourse a buyer of a crappy used car may have).

The UCC has been adopted by all states, but while the UCC regulates warranties, it does not necessarily require them. There is also the Magnusson-Moss Warranty Act, which I believe is incorporated into the UCC in most states. But this too only regulates how warranties work, it does not require them in any instance.

I think that the general rule is as follows:

If a used car salesman makes a statement of FACT regarding a vehicle, such as that it has never been in an accident, he is basically creating an express warranty to that effect and, if you later find out that the vehicle was in an accident, you would have a breach of warranty claim.

Also, there is the "implied warranty of merchantability." This is a general warranty that applies to ALL new items, and requires that the product be fit for its general purpose. Whether or not this warranty applies to used cars likely differs from state to state, and I would imagine that it does NOT apply in most states.

Finally, there is the "warranty of fitness for a particular purpose." This warranty is applicable to all transactions, and works as follows (for example): you go to the used car lot looking for a truck capable of towing a large trailer. You tell the salesman that this is what you are looking for, he directs you to a particular vehicle, and makes a statement of FACT that the vehicle is fully capable of pulling a large trailer. You buy it, hook up the trailer, and the transmission blows out after 50 miles. You then have a breach of warranty claim.

But my impression is that, as a general rule, used cars are sold AS-IS (although some state's laws may forbid this) and that, unless there was a statement of FACT regarding the vehicle, that later turned out to be untrue, there is no recourse.

But like I stated above, I've never fully understood this area of the law, so take my statements with a grain of salt.

There are federal laws and regulations that are applicable to used cars purchased from dealers.

Dealer are defined as anyone who sells more than 6 autos in a 12 month period.

There are various forms and notices that MUST be presented to the buyer.

Each state has adopted the UCC in one form or another, and the warranty of merchantability varies from state to state. Here in NY, there is NO "as is" purchase of an automobile from a dealer-this is true in MOST states.

The duration and applicability of the WOM varies from state to state. One exception to the "as is" sale is when the dealer sells an auto for a purpose OTHER than to be driven on public roads; such vehicles cannot be registered for use on public roads (i.e. off road only, parts car, etc.)

Lemon laws do not apply to used cars in most states. They are purchased "AS IS" with no warranty or a limited warranty. When you buy a used car you are buying someone elses old problems.

Based on the comment you left the only person you should be upset with is you. By your own admission, you signed papers w/o reading them closely. If the dealership was closing, why not come back the next day. You cannot blame the finance company because you had problems with a car you picked out. The car and the loan are two separate entities. Credit Acceptance loaned you money to buy a car they did not pick the car out for you nor did they make you purchase the car. Sorry but you are still liable for the loan and eventually you will have to pay for the car you choose.