Your Rights as a Subprime Auto Loan Borrower

Subprime auto borrowers are protected by several federal laws. Knowing them is the first step to standing up to a lender like American Credit Acceptance. This is general information from MultiGen Law Institute, not legal advice.

Truth in Lending Act (TILA)

TILA requires lenders to disclose the true cost of your loan clearly and up front — the annual percentage rate (APR), the finance charge, the amount financed, and the total of payments. If those figures were hidden, buried, or misstated, that can matter. Keep your original contract; it is where these disclosures should appear.

Fair Debt Collection Practices Act (FDCPA)

The FDCPA governs how third-party debt collectors may treat you. Generally, they may not harass you, call at unreasonable hours, use threats, or misrepresent what you owe. You can request written validation of a debt, and you can tell a collector to stop contacting you in writing.

Fair Credit Reporting Act (FCRA)

The FCRA gives you the right to an accurate credit report. You can dispute errors with Equifax, Experian, and TransUnion, and the bureaus must investigate. If a lender keeps reporting information you have shown to be inaccurate, that is a serious issue. Our dispute guide shows you how.

State repossession and deficiency law

On top of federal law, each state has its own rules on how a vehicle may be repossessed, what notices you must receive, and how a “deficiency balance” is calculated. Because these vary widely, this is an area where a licensed attorney in your state can be especially valuable. See our repossession guide for the basics.

When to talk to a licensed attorney

If you are being sued, facing wage garnishment, or believe your rights were violated, consider speaking with a consumer-protection attorney in your state. Many offer free consultations, and some laws let you recover attorney fees if you win.

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Think one of these laws applies to your American Credit Acceptance loan? Tell us what happened — it is free.

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Disclaimer: MultiGen Law Institute is a consumer advocacy organization, not a law firm, and this is not legal advice. Laws and their application vary by state and situation. Consult a licensed attorney in your state.