SOUTHFIELD, Mich., Feb. 12, 2007 (PRIME NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq:CACC) (the "Company") announced today that it has signed a Memorandum of Understanding to settle a consumer class action lawsuit in the matter entitled Marvin Fielder, et al v. Credit Acceptance Corporation, pending in the Circuit Court of Jackson County, Missouri. The lawsuit has been pending since October of 1996 and is described in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and most recently in the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006.
Credit Acceptance has agreed to pay $12.5 million in full and final settlement of all claims against Credit Acceptance.
The lawsuit relates to allegations that between October 15, 1991 and October 9, 1997, in Missouri, Credit Acceptance delivered defective post repossession notices, assessed excessive interest, and accepted assignment of installment contracts from Missouri dealers that contained excessive official fees. The settlement is subject to court approval.
The Company's 2006 fourth quarter financial results will reflect a $11.2 million pre-tax charge related to the settlement.
Description of Credit Acceptance Corporation ============================================
Since 1972, Credit Acceptance has provided auto loans to consumers, regardless of their credit history. Our product is offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.
Without our product, consumers may be unable to purchase a vehicle or they may purchase an unreliable one, or they may not have the opportunity to improve their credit standing. As we report to the three national credit reporting agencies, a significant number of our customers improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the NASDAQ under the symbol CACC. For more information, visit creditacceptance.com.