Guaranteed Asset Protection Alliance Champions Legislation in Multiple States
TALLAHASSEE, Fla., Oct. 17, 2019 (GLOBE NEWSWIRE) -- It’s every new car buyer’s nightmare: Their brand-new car is damaged or destroyed while it’s still new, and they owe more on it than the insurance will pay to replace it. Fortunately, GAP waivers exist to cover the difference, and states across the nation passed laws this year extending new consumer protections to people who purchase them.
“Since cars depreciate in value so quickly, a soon-after-purchase crash likely means the consumer is going to owe the bank more than they’ll get back from their insurance company if their car is totaled,” said Tim Meenan, executive director of the Guaranteed Asset Protection Alliance. “This year, multiple states have passed legislation to protect consumers who purchase GAP waivers, which cover the gap between what you get and what you actually owe.”
Among the states passing GAP waiver legislation in 2019 are these:
- Arkansas, North Dakota, and Virginia each passed 30-day free-look periods, allowing anyone to cancel a GAP waiver without a penalty, fee, or cost within 30 days of purchase. The states also required full disclosure of consumers’ cancelation options beyond the free-look period.
- Oregon enacted legislation eliminating a “sunset provision” and thereby saving consumer protections that already exist under state law.