Guaranteed automobile protection (GAP) is an add-on product sold to car buyers who finance their purchase. If a buyer’s car is totaled in an accident, the buyer’s auto insurance typically pays only the fair market value of the car, which can be less than the amount owed on the buyer’s loan. GAP applies in that situation to cancel, or pay off, the remaining balance owed on the loan. If a borrower pays off the loan early, or the car is repossessed before the loan is paid off,
An investigation by the consumer credit unit in the consumer protection division of the
“We are committed to protecting hard-working Coloradans, especially from unfair, deceptive, and illegal practices that cause them stress, hardship, and financial losses,” Weiser said. “I am pleased that this money will be returned to
Earlier this year, the department secured for
The administrator of the Uniform Consumer Credit Code, who is part of the
Borrowers who believe they are owed a GAP fee refund because they paid off a car loan early or did not receive a full benefit for GAP coverage should contact the consumer credit unit at email@example.com, or file a complaint here (https://coag.gov/press-releases/compass-bank-aafcu-gap-fees-refund/).