Credit Acceptance Corp. received a subpoena from the Attorney General of the State of Maryland, “relating to the company’s repossession and sale policies and procedures in the state of Maryland,” according to the company’s 10-Q filed with the Securities and Exchange Commission Monday. The subpoena was received by CACC on March 18.
The Southfield, Mich.-based lender is cooperating with the inquiry and states that it cannot predict the eventual scope, duration or outcome at this time.
“Not unusually in these type of matters, we don’t really have any insight into why we received the subpoena,” CACC Chief Executive Brett Roberts said during the company’s earnings call Monday. “We’re in the process of providing responsive information to the AG in the State of Maryland. I don’t think there’s any commonality relative to this and other subpoenas or regulatory actions. I think it’s just more evidence of a very heightened regulatory environment out there.”
The company also disclosed it received a First Amended Complaint filed by Westlake Financial Services and Nowcom Corporation — a Los Angeles-based dealer management software company. The companies allege that CACC “has attempted to monopolize the indirect financing profit sharing program market in violation of Section 2 of the Sherman Act.”
The case, in which the companies are seeking “among other things, injunctive relief and unspecified money damages,” was filed Unites States District Court, Central District of California, Western Division. The court dismissed the claims brought by Nowcom Corp. on April 6, however CACC also cannot predict the duration or outcome of the remaining lawsuit, according to the 10-Q.Like This Post