|Exchange:||NASDAQ national market|
|Stock:||Credit Acceptance Corporation|
|Credit Acceptance Corporation is a financing company. The Company offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit history. The company’s product is offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for its product, but who actually end up qualifying for traditional financing. The company refers to dealers who participate in its programs, and upon enrollment in its programs, the dealer-partner enters into a dealer servicing agreement with the company that defines their legal relationship. The dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on retail installment contracts from the dealer-partners to the company. A consumer who does not qualify for conventional automobile financing could purchase a used vehicle from a Credit Acceptance dealer-partner and finance the purchase through the Company. It is an indirect lender from a legal perspective, meaning the consumer loan is originated by the dealer-partner and immediately assigned to it. The company has two main programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, it advances money to dealer-partners in exchange for the right to service the underlying Consumer Loan. Under the Purchase Program, it buys the Consumer Loan from the dealer-partner and keeps all amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as ‘Loans’. The Company mainly competes with dealerships, banks, captive finance affiliates of automobile manufacturers, credit unions and independent finance companies both publicly and privately owned. The Company’s business is subject to laws and regulations, including the Truth in Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act and other various state and federal laws and regulations.|
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