Credit Acceptance took your car, and now it says you still owe thousands of dollars. If that sounds familiar, pay attention. A Credit Acceptance repossession does not always end the debt — but, as Wilkes-Barre bankruptcy attorney Jason P. Provinzano, Esquire explains in his Credit Acceptance Settlement video series, you may have options you have not been told about.
Credit Acceptance has faced major legal action over its automobile lending practices. Pennsylvania joined a nationwide settlement with the company. That settlement brings hundreds of millions of dollars in debt relief and restitution to qualifying borrowers across the country.
But here is the honest warning Jason gives in Part 1: a lawsuit or settlement does not automatically mean your debt disappears. This guide pulls together all six parts of the series in order. Each section answers one question in plain English, with Jason’s video next to it. You can watch the full series on our Videos page, and learn more about bankruptcy in Pennsylvania on our main bankruptcy page.
Credit Acceptance repossession: why do you still owe money after the car is gone?
Because repossession is usually not the end of the loan. As Jason explains in Part 5, the lender takes the car and sells it. The sale money is applied to what you owe. If the car sells for less than the balance, you are generally left with the difference.
That difference is called a deficiency balance. It can be thousands of dollars. So many borrowers end up in the worst of both worlds: no car, and a big bill for a car they no longer have. If you are in Pennsylvania and you are dealing with Credit Acceptance, a repossession, or a big deficiency balance, do not just assume you have to live with it.
What does the Credit Acceptance settlement mean in Pennsylvania?
It means real money is on the table for Pennsylvania borrowers. As Jason breaks it down in Part 2, Pennsylvania joined a nationwide settlement with Credit Acceptance involving hundreds of millions of dollars in debt relief and restitution. Pennsylvania borrowers alone are expected to receive more than $17 million in debt relief and nearly $3 million in restitution.
Who that money helps depends on where you stand. Some qualifying borrowers who already had their vehicles repossessed may have their remaining debt forgiven. Other qualifying borrowers who still have their vehicle may receive debt relief that could actually help them keep the car. Both groups are covered in the parts below.
Who actually qualifies for the Credit Acceptance settlement?
That is the biggest question Jason gets, and his answer is honest: it depends. The settlement covers certain high-risk Credit Acceptance loans, including certain loans made between November of 2015 and November of 2025.
Within that group, the outcomes differ. Some people whose cars were already repossessed could have their remaining balances completely wiped out. Some people who still have their cars could also receive substantial debt relief. But not everybody with a Credit Acceptance loan qualifies. And you do not need to apply right now. If your account qualifies, Credit Acceptance or the settlement administrator is supposed to contact you directly.
Think you might qualify? Do these three things right now
First, keep making your car payment. Do not stop paying just because you heard about the settlement. Until you are specifically told that your account qualifies for relief, keep making your normal payments.
Second, make sure Credit Acceptance has your current address and email. If you qualify, it is supposed to contact you directly. Jason notes that notices are expected to go out sometime around February 2027. If the company has an old address for you, your notice may never reach you.
Third, watch out for scams. Official settlement notices will not contain hyperlinks, and you should not be asked to provide personal information to claim relief. So if somebody texts you saying “click here to claim your Credit Acceptance settlement,” do not click it. It is a scam.
Your car was repossessed and you are still getting billed — can that balance be forgiven?
For certain borrowers, yes — completely. Under the settlement, certain borrowers whose vehicles were already repossessed may have their remaining balances completely forgiven. Jason puts the scale of it plainly in Part 5: the settlement provides approximately $388 million in debt relief for qualifying borrowers whose vehicles were already repossessed.
Remember, though, that not everyone qualifies. If you are eligible, you are supposed to be contacted directly by Credit Acceptance. So if your car was repossessed and you are still getting billed for a big balance, pay very close attention to your mail and email. The Consumer Financial Protection Bureau explains deficiency balances in its guide, What happens if my car is repossessed?
Still have your car? The settlement may help you keep it
A lot of people think this settlement only helps people whose vehicles were already repossessed. That is not true. As Jason explains in Part 6, the settlement includes approximately $246 million in debt relief for certain qualifying borrowers who still have their vehicles. For some of those borrowers, that relief could allow them to keep the car.
But Jason stresses this point, and so do we: do not stop making your payments right now just because you have a Credit Acceptance loan. Having the loan does not mean you qualify. Credit Acceptance says only a small percentage of its current accounts are affected. If you qualify, it is supposed to contact you directly, by mail or email, and tell you that you are part of the settlement.
What if you do not qualify — or you still owe a deficiency balance?
Then the settlement is not your only option. A deficiency balance after a repossession is a debt like many others, and debts like it are exactly what bankruptcy is built to address. For many people, Chapter 7 bankruptcy can discharge a remaining car-loan deficiency balance, along with credit cards and other unsecured debts.
If you still have your car and you are behind, Chapter 13 bankruptcy may offer a different path: a court-approved repayment plan over three to five years, instead of facing repossession and collection on your own. And if a lender has sued you over a deficiency balance, filing bankruptcy generally stops that collection lawsuit while the case moves forward.
Which path fits depends on your full picture — the car, the balance, and your other debts. That is a conversation, not a guess. Nothing in the settlement, and nothing on this page, guarantees a result for any one borrower.
Start by gathering the paperwork. Find your Credit Acceptance contract, any repossession notice, and any letter showing a deficiency balance. Then check whether your loan falls in the settlement window Jason describes, and whether you have heard from Credit Acceptance or the settlement administrator directly. With those papers in hand, a short review can tell you whether to wait for a settlement notice, deal with the balance another way, or look at bankruptcy.
Questions about your Credit Acceptance loan?
Questions about your situation? Call 570-822-5771 for a free consultation. The Law Offices of Jason P. Provinzano, LLC is at 16 W. Northampton Street in Wilkes-Barre, and helps people across Northeastern and Central Pennsylvania.
General information only — not legal advice for a specific situation.
