Mississippi attorney general subpoenas Credit Acceptance

SOUTHFIELD, Mich. - 

For the second time in about a year, Credit Acceptance is dealing with an attorney general subpoena.

The finance company acknowledged late on Friday through a filing with the Securities and Exchange Commission that it received a subpoena from the Mississippi attorney general on Aug. 14. Credit Acceptance said the subpoena is relating to the origination and collection of non-prime vehicle installment contracts in the state of Mississippi.

“We are cooperating with the inquiry and cannot predict the eventual scope, duration or outcome at this time,” the company said in the filing. “As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this investigation.”

The matter in Mississippi arrived 16 months after Credit Acceptance revealed a similar situation originating from the top law enforcement officer in Maryland.

Credit Acceptance confirmed in a regular filing with the SEC that the company received a subpoena from the Maryland attorney general on March 18, 2016, relating to the company’s repossession and sales policies and procedures within that state.

Senior vice president and treasurer Doug Busk touched on that matter during Credit Acceptance’s conference call when the finance company discussed its second-quarter results.

“In terms of the Maryland matter, as we disclosed, the subpoena is focused on our repossession and sale policies and procedures in the state of Maryland,” Busk said. "Not unusually in these types of matters, we don’t really have any insight into why we received the subpoena. We are 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,” he continued.

“In terms of the collection practices, being in business as long as we have, we’ve been focused on doing things right from a regulatory perspective. So we assess the (Consumer Financial Protection Bureau’s) position on that and really anything else and make changes to our business if we think it’s necessary to meet their expectations,” Busk went on to say.

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