CACC Latest Company to Receive Subpoena from DOJ
Credit Acceptance Corp., the Southfield, Mich.-based indirect lender, was issued a subpoena from the U.S. Department of Justice, the company revealed in an 8-K filed with the Securities and Exchange Commission today.
In the filing, CACC wrote that it had received a subpoena on Tuesday, “pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, directing the company to produce certain documents relating to subprime automotive finance and related securitization activities.”
Credit Acceptance is the latest finance company to reveal it is receiving scrutiny from the regulatory agency, following Toyota Motor Credit and American Honda Finance Corp. filings last week, in which both companies revealed they had received letters from both the DOJ and Consumer Financial Protection Bureau.
However, unlike AHFC and Toyota Credit, CACC makes no mention of the CFPB in its filing today, but does write that it is also receiving scrutiny from the Office of the Attorney General of the Commonwealth of Massachusetts.
“Earlier in December,” the company wrote in the 8-K. “The Company received a civil investigative demand from the Office of the Attorney General of the Commonwealth of Massachusetts relating to the origination and collection of non-prime auto loans in Massachusetts.”
CACC has not yet released an official statement about the investigation, but does write in the filing that the company intends to cooperate with the inquiries.
