Credit Acceptance Corp. (NASDAQ: CACC) is facing a wave of investigations for its improper business practices. At least 39 states are investigating CACC for repossession and sales policies and procedures. CACC’s stock price has sharply dropped on this news.
Today, the Attorney General of Massachusetts filed a lawsuit against CACC for allegedly making unfair and deceptive auto loans to thousands of Massachusetts consumers, providing investors with false or misleading information regarding auto securities they offered, and engaging in unfair debt collection practices. The Massachusetts AG’s suit alleges that this misconduct has been ongoing since approximately 2013. On this news, the price of CACC common stock has fallen precipitously and is down approximately 12% in intraday trading.