The Massachusetts Attorney General filed suit against Credit Acceptance Corporation $CACC today. We started providing their lawyers with information in February 2018. They have come to this battle prepared. https://twitter.com/JCOviedo6/status/1300441221039616000

Given the recent activity by other AGs, this appears to be a coordinated effort. Other AG and/or CFPB enforcement lawsuits are likely.

$CACC has $8.5 million in cash as of Q2 2020. That won't even cover the legal fees.

$CACC is toast.

For more, see our three-part Reality Check report on $CACC at the link below. https://twitter.com/PlainSite/status/1256358530455494656

As part of its lawsuit, the Massachusetts Attorney General is seeking damages from $CACC for a mere 1.73 million debt collection call violations.

These two paragraphs alone about its repossession practices, which are illegal in Massachusetts because they conveniently ignore the fair market value of the vehicle, could put $CACC out of business.

The lawsuit also gets into the fake Vehicle Service Contracts sold with 50% of $CACC vehicles, which are discussed in-depth in Part I of our report.

Here, the AG flags about $8 billion of $CACC securities fraud. Earth to class action securities lawyers...

And from the exhibits, a 100% VSC sales rate at a $CACC dealer. For an optional add-on product.