Hawaii has joined a proposed multistate settlement with auto lender Credit Acceptance Corporation over allegations involving unaffordable loans and add-on products. The consent judgment still needs court approval in participating states, so the proposed relief should not be described as money already paid to every borrower.
In a September 23 announcement, Hawaii's Office of Consumer Protection said the nationwide settlement could provide up to $60 million in cash restitution and up to $634 million in debt forgiveness, with up to $15 million going to settling attorneys general. Those are nationwide maximums or prospective amounts, not a per-person payout. Hawaii expects eligible borrowers in the state to receive nearly $115,000 in direct payments in total and nearly $830,000 in debt relief in total, some of which the office says may already have been provided.
The state says investigators alleged that Credit Acceptance originated some loans it knew or should have known borrowers could not afford. They also alleged that dealers in its network added vehicle service contracts and guaranteed asset protection products without consumers understanding the purchase or believing the products were required to finance the car. These are allegations resolved by the proposed settlement, not findings in this article.
If approved, the judgment would require new disclosures, monitoring of add-on sales and a process to cancel certain products more easily. For qualifying risky loans made beginning December 2025 that fail quickly, the settlement describes a five-year program beginning November 2, 2026, under which qualifying borrowers would get 95% debt relief and would not face collection suits on those loans. Not every Credit Acceptance borrower qualifies.
The Hawaii office says Credit Acceptance must contact consumers entitled to certain types of relief. Borrowers should verify their eligibility through official channels and not assume that an unsolicited message requesting an upfront fee is legitimate. Financialist's Hawaii debt guide offers background on state debt rules, separate from the settlement's eligibility terms.