CREDIT ACCEPTANCE CORP

General Credit Acceptance Corporation provides financing solutions that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. The company's financing programs are offered through a nationwide network of automobile dealers. These programs allow dealers to sell vehicles to consumers who might otherwise not secure financing, generate repeat and referral sales, and attract customers responding to advertisements for Credit Acceptance's financing. Consumers often cannot purchase vehicles or acquire unreliable ones without these programs. Credit Acceptance reports to the three national credit reporting agencies, offering consumers an opportunity to improve their credit scores and potentially access traditional financing. Founded in 1972, Credit Acceptance initially collected retail installment contracts, referred to as "Consumer Loans," originated by automobile dealerships owned by its founder, Donald Foss. In the 1980s, the company expanded its services to non-affiliated dealers and began offering dealers a non-recourse cash payment, or "advance," against future collections on Consumer Loans serviced for them. Dealers participating in these programs enter into a Dealer servicing agreement with Credit Acceptance, which defines the legal relationship and assigns the responsibilities for administering, servicing, and collecting amounts due on Consumer Loans to Credit Acceptance. The company operates as an indirect lender, meaning Consumer Loans are originated by the Dealer and then assigned to Credit Acceptance. The majority of these Consumer Loans are made to consumers with impaired or limited credit histories.