Credit Acceptance Corp’s lending under scrutiny

Sub-prime auto lender Credit Acceptance Corporation is under investigation by the Maryland attorney general regarding its repossession and sales policies, the fifth such inquiry into the company to be launched since December 2014.

In its annual report, the company disclosed that it received the subpoena on March 18, “relating to the company’s repossession and sale policies and procedures in the state of Maryland.” This follows other investigative notices, including one from the US justice department and another from the Federal Trade Commission.

To date, Credit Acceptance Corporation has faced no penalties or charges relating to the inquiries, and has said it is cooperating with the latest investigation and is in the process of providing requested information.

“Not unusually in these type of matters, we don’t really have any insight into why we received the subpoena,” Credit Acceptance Corporation chief executive Brett Roberts said during a briefing to analysts. “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.”