If you have found that American Credit Acceptance Corp is ruining your credit score, rest assured there are ways to resolve the situation. In this article, we will provide you with valuable information and actionable steps to navigate credit score issues caused by this auto lender. These tips will help you get control and steer your credit back on the right track.
What is American Credit Acceptance Corp?
American Credit Acceptance, LLC is a financial service company specializing in auto finance solutions. The company is based in South Carolina and is a third party, subprime lender. This means that as a lender, they focus on customers with low credit scores who aren’t able to get a loan through a more mainstream bank. Because they take on higher risk borrowers, they charge higher interest rates when compared with prime loans.
Lenders like American Credit Acceptance Corp can also structure auto loans differently. They may require a larger down payment, or even use vehicle tracking devices so they can be sure they always know where the vehicle is.
Like other traditional lenders and banks, subprime lenders report borrower payment history to credit bureaus. This means that regular, on-time payments can help improve your credit score over time, while missed or late payments can have a negative impact.
Is American Credit Acceptance Corp a legit Debt Collection Agency?
American Credit Acceptance LLC was incorporated in 2007, and has been registered with the Better Business Bureau since 2013. The company has over 1500 employees, and manages over $5 billion in assets. The company works with car dealers in every U.S. State to help service higher credit risk buyers. This company is a legitimate agency, indeed.
If you have a loan with American Credit Acceptance, LLC and if you are late on an auto loan payment, or have missed a payment, they have a right to call you to collect the debt. In fact, many customers have complained of being called repeatedly by this company. However, when it comes to contacting customers who owe them money, it is important to know what is and what is not allowable for registered debt agents.
Even though calling a customer is legally within the company’s right, any lender still has to operate according to the Fair Debt Practices Act. That means the lender may not harass you or use abusive means to contact you. If you find that American Credit Acceptance Corp. or any other lender is not operating within their legally allowed practices, submit a complaint to the Consumer Finance Protection Bureau.
American Credit Acceptance Reviews
As a lender who collects payments, the company’s reviews span a range from “horrible” to “excellent.” American Credit Acceptance Corp certainly has their fair share of negative reviews about them. These complaints include inaccurate billing records, and lack of balance and payment notices. Past customers have remarked about poor customer service when trying to deal with their agents. Others have given poor reviews due to the high interest rates the company charges.
The company also gets positive reviews from individuals who have had good experiences. Some people note that American Credit Acceptance loaned them money to finance a vehicle when no other lender would approve, so they appreciate that lenders like this exist. Others mention the customer service agents who work with them by phone to make up for a late payment or give a grace period.
Understanding American Credit Acceptance’s Repo Time
If you’re late on your loan payment, you may be anxious about how long it will be before American Credit will repo your car. First of all, there is no blanket policy about when the lender will repo the car.
According to reports, American Credit Acceptance prefers to contact borrowers and work out a plan to reinstate payments, rather than repo the car. It is still important to know that all states have different laws about when a vehicle can be repossessed. Check with your state’s Attorney General’s office to understand their auto repossession laws. In this way, you will be aware of the legally allowable time that can pass before the lender can repossess a vehicle.
What to Do First
If you know this company’s remarks on your credit report are negatively affecting your credit, prepare to make your case and resolve issues. First, gather documentation: Collect all relevant documents, including the loan initiation, payment receipts, correspondence, and any other evidence supporting your claim. This documentation will be crucial in presenting your case when you contact the company.
When To Contact American Credit Acceptance Corp
After you have gathered and reviewed your loan and payment documents, you should contact American Credit. If you have a late payment reported, you can call them to speak with a customer service representative, and ask them to remove this as a matter of goodwill. It is best to maintain a calm, courteous manner when making any requests, since you are relying on the company’s goodwill and their removal of this item is voluntary.
To Contact American Credit Acceptance by phone, call 1 (866) 544-3430
You should also submit a request to remove a late payment in writing. Use this template to ask the company to delete this mark against your credit. Once the company removes a late payment from your credit report, your credit score will improve.
Disputing Information Reported on Your Credit Report
If American Credit has reported an incorrect loan balance, or an unpaid balance that you actually paid, these are errors that should be removed from your credit report. Carefully review all information. If there are inaccuracies, you should dispute the errors. To do this, contact the credit reporting agency and explain in writing why you believe the item on your credit report is wrong. After your dispute, if American Credit Acceptance cannot provide proof that their report is correct, the credit reporting agency must remove the item from your credit report.
A Last Step: Arbitration
If you encounter resistance or are dissatisfied with the response from American Credit Acceptance, LLC, you may want to consult an arbitration lawyer. They can help you understand your rights, guide you through the arbitration process, and represent your interests effectively.
Many companies like American Credit Acceptance, LLC include arbitration clauses to address disputes. Arbitration is quicker and cheaper to resolve conflicts between lenders and borrowers. By pursuing arbitration, you can present your case before an impartial third party who will make a decision based on the facts presented.
Know Your Consumer Rights
Dealing with a situation where American Credit Acceptance, LLC is ruining your credit score can be frustrating. However, you can take proactive steps to address the issue. By gathering documentation, contacting the company, disputing errors and understanding consumer laws, you can increase your chances of finding a resolution in your favor. Your aim is to help your credit score recover, so take the time to go through these steps. Remember that you have rights as a consumer, and taking action helps protect your financial well-being.
