RALEIGH, N.C. (WHKY) – North Carolina Attorney General Jeff Jackson and a bipartisan coalition of attorneys general have reached a $694 million settlement with Credit Acceptance Corporation, one of the nation’s largest auto finance companies, over allegations of predatory lending practices.

The settlement includes nearly $2 million in restitution for about 1,300 North Carolina consumers, averaging roughly $1,435 per person. Another $7.5 million in debt relief will go to North Carolina borrowers.

The lawsuit alleged the company targeted low-income and high-risk borrowers with high-interest auto loans that it knew many consumers could not afford. The allegations also included misleading consumers about loan costs and aggressive collection practices following defaults.

The settlement provides additional debt relief for consumers with certain high-risk loans and establishes new requirements for disclosures, vehicle pricing, loan protections and dealer oversight.

Eligible consumers will be notified by a claims administrator or by Credit Acceptance Corporation.