Recent Updates — CACC
Credit Acceptance Corporation amended two financing agreements with Wells Fargo Bank on September 15, 2026. The company extended the $500 million Term ABS 2019-2 asset-backed non-recourse secured financing, extending its revolving cessation date from September 15, 2026 to September 15, 2028 and increasing the interest rate from 5.43% to 5.83%. Additionally, Credit Acceptance extended its $500 million Warehouse Facility II, moving the scheduled amortization date from September 20, 2027 to September 15, 2028 while decreasing the spread on borrowings from SOFR plus 185 basis points to SOFR plus 175 basis points. As of the amendment date, $180 million was outstanding under Warehouse Facility II. Credit Acceptance Corporation operates in the automotive finance industry, providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history.
Credit Acceptance Corporation entered into consent judgments with the attorneys general of 40 states and the District of Columbia to resolve litigation initiated in 2023 and a multi-state investigation dating back to 2020. The settlement requires the company to pay $15.5 million to participating attorneys general, contribute $60 million to a consumer relief trust fund, and waive outstanding balances for certain customers totaling an estimated $634 million in debt relief. These payments are covered by amounts previously accrued, requiring no additional charges to financial statements. The agreement mandates five years of compliance with enhanced debt-collection practices and seven years of improved consumer disclosures regarding vehicle pricing and affordability protections. Credit Acceptance Corporation operates in the automotive finance industry, providing subprime vehicle financing solutions through a network of automobile dealers.
Credit Acceptance Corporation entered into a separation agreement with Jay D. Martin, its former Chief Financial Officer whose tenure ended on July 27, 2026. Mr. Martin will serve as an unsalaried employee advisor providing approximately 15 hours of services per month from September 3, 2026, through February 1, 2027. The company will pay a pre-tax lump sum of $4,000 for benefit premiums and cover three months of medical, dental, and vision benefits at no cost to Mr. Martin during the term. Outstanding equity awards continue to vest according to their existing schedule. Credit Acceptance Corporation operates in the financial services industry, specializing in subprime auto financing.
Credit Acceptance Corporation completed a $600.0 million asset-backed non-recourse secured financing on August 20, 2026. The company conveyed consumer loans valued at approximately $750.2 million to Credit Acceptance Funding LLC 2026-2, which transferred them to a trust issuing three note classes: Class A ($319.88 million), Class B ($117.3 million), and Class C ($162.82 million). The financing carries an expected average annualized cost of approximately 5.5% and will revolve for 24 months before amortizing based on loan cash flows. Proceeds are designated to repay higher-cost indebtedness and fund general corporate purposes, while the company retains a 4.0% servicing fee. This transaction represents the largest ABS deal in the company's history and achieved credit spreads at their lowest level since late 2021. Credit Acceptance Corporation operates in the automotive finance industry, providing subprime auto loan financing to consumers through a network of automobile dealers.
Credit Acceptance Corporation reported second quarter 2026 financial results for the three months ended June 30, 2026. The company posted consolidated net income of $135.9 million, or $12.66 per diluted share, compared to $87.4 million, or $7.42 per diluted share, in the prior year period. Adjusted net income reached $130.1 million, or $12.12 per diluted share. Consumer loan assignment unit volume declined 1.0% to 84,615, while dollar volume grew 0.1% to $1.0 billion. The company repurchased 262,963 shares for $141.4 million and maintained $1.4 billion in liquidity. Credit Acceptance Corporation operates in the automotive finance industry, providing retail installment contract assignment services to used car dealers.
Credit Acceptance Corporation announced that Chief Technology Officer Ravi Mohan's resignation will be effective August 14, 2026, with a separation and advisory agreement including a monthly consulting fee of $64,375 from August 14, 2026, to February 14, 2077. Credit Acceptance Corporation is a financial services company providing consumer and consumer-lending-related services.