Auto Indirect

Yes, but only at the sale of the waiver, not at termination.

The Alabama Guaranteed Asset Protection Waivers Law, Ala. Code §§ 8-37-1 et seq., requires a creditor that offers a GAP waiver to disclose, in writing and in clear, understandable language that is easy to read, among other things:

• That the borrower may cancel the GAP waiver within a Free Look Period, as specified in the waiver, and will be entitled to a refund of the purchase price so long as no benefits have been provided; if benefits have been provided, the borrower will receive a pro rata refund less a cancellation fee of no more than $50 in accordance with the terms of the waiver.
• The procedures for cancelling the GAP waiver and requesting any refund due pursuant to Ala. Code § 8-37-6.

Ala. Code § 8-37-5.

However, there is no disclosure requirement triggered by termination of the waiver.

The GAP law does not require a holder to provide the retail seller notice that the contract has been prepaid or the vehicle repossessed.

The Free Look Period must be at least 30 days. Ala. Code § 8-37-2(5).

April 12, 2018   Show Redlined Changes