Who DriveTime Is
DriveTime Automotive Group, Inc. is the largest buy-here, pay-here used car dealer in the United States, headquartered in Tempe, Arizona. They operate hundreds of dealerships nationwide, primarily targeting consumers with damaged credit, low credit scores, or no credit history who cannot qualify for conventional auto financing.
Unlike Westlake Financial or Credit Acceptance Corporation — which buy loans originated at other dealerships — DriveTime is both the seller and the lender. When you buy a car at DriveTime, you are financing directly through their affiliated finance company, DT Acceptance Corporation. There is no third-party bank or lender involved. DriveTime holds your loan and collects your payments directly.
That structure matters. DriveTime’s average customer has an annual income between $37,000 and $50,000 and a FICO score between 461 and 554. At least 45 percent of DriveTime’s auto installment contracts are delinquent at any given time — a figure the CFPB documented during its investigation. DriveTime’s business model is built around high-interest loans to high-risk borrowers, and their collections operation reflects that.
Why You Might Be Hearing From Them
The most common reasons DriveTime contacts consumers:
- You purchased a vehicle at a DriveTime dealership and they hold your loan.
- You are behind on payments and DriveTime’s collections department is calling.
- Your car was repossessed and DriveTime is pursuing a deficiency balance.
- DriveTime reported inaccurate information to the credit bureaus and it is showing up on your credit report.
That last one is more common than it should be, as the CFPB found in a formal enforcement action.
DriveTime’s Regulatory History
2014 — CFPB Consent Order, $8 Million Penalty
The CFPB took its first-ever enforcement action against a buy-here, pay-here dealer when it sanctioned DriveTime in November 2014. The bureau found that DriveTime harmed consumers through multiple illegal practices.
Harassing debt collection calls. DriveTime operated a collections call center with more than 290 employees in the United States and an additional 80 contractors in Barbados, placing tens of thousands of collection calls every weekday. The CFPB found that DriveTime collectors called borrowers at their workplaces despite being told to stop — a practice DriveTime management actively encouraged. In at least one documented case, a consumer was fired because DriveTime collectors repeatedly called her at work. DriveTime also called the personal references borrowers were required to provide at the time of financing — harassing people who had nothing to do with the loan — and continued calling wrong numbers for as long as a year after being told they had the wrong person.
Inaccurate credit reporting. DriveTime reported inaccurate repossession information to all three major credit bureaus for as many as 90,000 customers. In many cases, DriveTime reported that repossessions occurred more recently than they actually did — artificially extending the period during which the derogatory item damaged consumers’ credit scores. DriveTime received approximately 22,000 complaints per year about these errors and had only two employees assigned to handle them. In some cases, DriveTime told consumers in writing that errors had been corrected when they had not been. The CFPB found these practices violated the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.).
The CFPB ordered DriveTime to pay an $8 million civil money penalty, end its illegal debt collection tactics, fix its credit reporting practices, and provide free credit reports to affected consumers. See the CFPB enforcement action.
What If DriveTime Is Contacting You About a Debt
If DriveTime is calling you or sending letters about a balance, you have rights under both federal and California law.
Under the federal Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.) and California’s Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code § 1788 et seq.), debt collectors are prohibited from calling you at work after you ask them to stop, contacting your personal references or family members about your debt, calling at unreasonable hours, and making false or misleading representations about what you owe.
Given DriveTime’s documented history — and the CFPB’s specific findings about their call center practices — if their collectors are crossing those lines, document every contact and file a complaint at consumerfinance.gov/complaint.
What If DriveTime Has Inaccurate Information on Your Credit Report
If DriveTime is reporting inaccurate information about your account — including incorrect repossession dates, wrong balances, or errors that were supposed to be corrected but were not — you have the right to dispute that information under the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) and California’s Consumer Credit Reporting Agencies Act (Cal. Civ. Code § 1785.1 et seq.).
Dispute in writing by certified mail with each bureau reporting the error. Keep copies of everything. If DriveTime was already caught doing this to 90,000 consumers, your account may be one of the affected ones.
What If DriveTime Repossessed Your Car in California
If DriveTime has repossessed your vehicle in California, the Rees-Levering Motor Vehicle Sales and Finance Act (Cal. Civ. Code §§ 2981–2984.6) gives you specific rights — including the right to reinstate the loan, redeem the vehicle, retrieve your personal property, and challenge any deficiency they try to collect.
DriveTime must follow every Rees-Levering requirement before they can sue you for a deficiency. If their notice was defective, the sale was commercially unreasonable, or the post-sale accounting was missing or inaccurate, they may be legally barred from collecting the deficiency entirely under Cal. Civ. Code § 2983.2(a).
If DriveTime is suing you over a deficiency, our course walks through how to respond to a California debt lawsuit step by step: https://law-without-lawyers.com/ca-debt-lawsuit/
What If the Debt Is Bigger Than Just the Car
If a DriveTime deficiency is part of a larger financial crisis — credit cards, medical bills, other accounts in default — bankruptcy may be the more efficient exit. Chapter 7 can discharge a DriveTime deficiency balance along with your other unsecured debt. Chapter 13 can stop a repossession that has not yet gone to auction and let you restructure what you owe.
If DriveTime is one of several creditors coming at you at once, it is worth understanding your options before a judgment is entered. You can request a consult to speak with a bankruptcy attorney.
Frequently Asked Questions
Is DriveTime a legitimate company?
Yes. DriveTime is a licensed auto dealer operating legally in multiple states. That does not mean their collection or credit reporting practices have always been lawful — the CFPB found otherwise in a formal enforcement action.
How many payments can I miss before DriveTime repossesses my car?
DriveTime’s contracts typically do not provide a grace period beyond what is stated in your agreement. Given that 45 percent of their loan portfolio is delinquent at any given time, they have an extensive collections operation and move quickly when accounts fall behind. Contact them before you miss a payment if you are struggling — getting ahead of it is better than waiting for the call.
Can DriveTime repossess my car without notice in California?
In California, a lender can repossess your vehicle without advance notice the moment you default. But DriveTime must follow strict post-repossession notice requirements under Cal. Civ. Code § 2983.2 before they can sell the car or pursue a deficiency.
What if DriveTime reported a repo on my credit that has the wrong date?
That is exactly what the CFPB found DriveTime doing to tens of thousands of consumers. Dispute the information in writing with each credit bureau by certified mail under 15 U.S.C. § 1681i. If DriveTime fails to correct it, you may have a claim under the FCRA.
Does this apply outside California?
Laws vary by state. The FDCPA and FCRA are federal and apply nationwide. California’s Rosenthal Act and Rees-Levering protections are California-specific. If you are in another state, consult the rules in your state.