Credit Acceptance to Pay $12.5 million to Settle Class Action Suit

Subprime auto finance company Credit Acceptance Corporation (NasdaqGM: CACC) said yesterday that it has signed a Memorandum of Understanding to settle a consumer class action lawsuit in the matter entitled Marvin Fielder, et al v. Credit Acceptance Corporation, pending in the Circuit Court of Jackson County, Missouri. The lawsuit has been pending since October of 1996 and is described in detail in the Credit Acceptance’s Annual Report on Form 10-K for the year ended December 31, 2005 and most recently in the company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006.

Credit Acceptance has agreed to pay $12.5 million in full and final settlement of all claims against the firm.

The lawsuit relates to allegations that between October 15, 1991 and October 9, 1997, in Missouri, Credit Acceptance delivered defective post repossession notices, assessed excessive interest, and accepted assignment of installment contracts from Missouri dealers that contained excessive official fees. The settlement is subject to court approval.

The company’s 2006 fourth quarter financial results will reflect a $11.2 million pre-tax charge related to the settlement.