Subprime Lender Spends Years and Thousands to Fight $2,300 Judgment

Milwaukee County, WI – February 12, 2013 – How much would time and money would you be willing to spend to fight a $2,300 judgment? Credit Acceptance Corp of Wisconsin apparently felt it was worth many thousands more to do so.

Based upon a State of Wisconsin Court of Appeals decision on Tommy Kirk v. Credit Acceptance Corporation dated and filed on February 12, 2013, Credit Acceptance Corporation initially commenced with an auto loan deficiency judgment motion against Kirk in November of 2008 which was dismissed by the courts in 2009.

In November of 2009, the borrower and prior defendant, Kirk, filed a motion for judgment against Credit Acceptance Corporation for claims of wrongful pre-repossession notification and lack of rights to liquidate based upon the aforementioned.

In January 2010, Credit Acceptance Corporation, filed motion for dismissal based upon the intent of the states laws regarding the actual requirement that the borrower be notified of the right to cure versus the mere requirement that the lender make the attempt as per statute, which was eventually denied and a judgment of $2,300 was granted to Kirk by the courts in August of 2010.

Credit Acceptance Corporation then proceeded to file an appeal on the judgment which, after two years was finally granted reducing the amount of judgment from $2,300 to $1,300.

Editors Note: I’m not here to tell people how to run their business, but was this really worth it? How many hours and dollars in attorney fees did it cost this lender to save a mere $1,000? While such lawsuits are a pain to defend and can frankly be a little insulting to logic, and some courts seem to make some really out of the blue liberal decisions based upon their own sense of social justice, they are a cost of doing business.

Does throwing even more good money after bad really make sense?

Kevin Armstrong

Editor