A national auto finance firm will pay hundreds of millions of dollars as part of a settlement to resolve allegations the company steered consumers into loans they’d struggle to repay, and hundreds of Washingtonians will see a payday as a result. 

Credit Acceptance Corp. recently reached the multistate settlement, according to a release. Along with $694 million in restitution, the company is required to, among other things, provide disclosures about loan risks, provide consumers “off ramps” from certain risky loans, and help guard consumers from dealers “packing” auto-loan contracts with unwanted insurance and vehicle servicing products. 

The Washington State Attorney General’s office estimates that 260 Washingtonians will receive payments averaging $1,400 from the settlement. The settlement also includes about $2.4 million in debt relief for eligible Washingtonians who will be eligible for loan forgiveness. 

“The law requires that lenders act fairly and transparently so that Washington borrowers understand what they’re signing and do not get saddled with debt they can’t afford to repay,” Attorney General Nick Brown said in a statement. “This settlement will deliver much-needed relief to Washingtonians who were harmed by these unfair and deceptive practices.”