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Gap Insurance Refund Class Action Lawsuit

GAP Insurance Refund After Total Loss or Paying Loan off Early?

GAP Insurance Refund Lawsuit

GAP Insurance Refund Class Action Lawsuit Investigation

GAP Insurance Refund After Total Loss or Paying Loan off Early?

  • Did you have GAP insurance as part of your loan?
  • Did you pay your loan off early?
  • Was your vehicle totaled before your car loan was paid off?
  • Did you receive a GAP insurance refund?
  • If you did not receive a GAP insurance refund, you may be entitled to compensation.
  • Take action – Submit GAP Insurance Refund Claim Here

Insurance customers who had an auto loan and paid it off early or had their vehicle totaled before their loan was paid off may be entitled to compensation from their bank or lender.

GAP Insurance Refund After Total Loss Accident

GAP is sold by the dealer at the time a new or used vehicle is purchased. It is sold as an insurance-like add-on by the dealer that protects the customer in the event there is a total loss of the vehicle.

If a vehicle is totaled after an accident or is stolen, GAP covers the amount owed on the loan beyond the vehicle’s value at the time of loss so that the customer may ‘walk away’ without any obligation to continue to make payments on a vehicle they no longer own.

The dealer sells GAP coverage for a fixed amount, usually around $650, that provides this protection for the life of the vehicle’s loan. After the dealer sells the car, it assigns the loan to a lender that takes on the GAP obligations.

Under the original GAP contract, the customer is entitled to a refund of a portion of the money they paid for GAP if the loan is paid-off before its term. This is because the GAP fee originally paid covered the total loan period. This means that when the loan ends early a refund for that unearned fee is due back to the customer.

Wells Fargo GAP Insurance Lawsuit and Settlement

Wells Fargo was hit with a class action lawsuit in March 2018. The lawsuit alleged that Wells Fargo was keeping the GAP insurance money when it was obligated to return it.

The Wells Fargo GAP class action lawsuit was filed by 15 Wells Fargo car loan customers who all claim that they terminated their loan early, but were not issued a GAP refund.

How much did the GAP insurance refund lawsuit settle for?

Wells Fargo agreed to pay $500 million to settle this class action lawsuit in June 2021.

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GAP Insurance Refund FAQs

What are the two types of GAP insurance coverages

What Is GAP Insurance?

What is a gap insurance refund?

Do I qualify for a GAP Insurance Refund?

Do I qualify for a GAP Insurance Refund Class Action Lawsuit Investigation?

Do you get a gap insurance refund if you pay off your car early?

Have any gap insurance refund lawsuits been filed?

Do you need gap Insurance?

Is gap insurance worth the money?

Can I file a gap insurance refund lawsuit?

Does gap insurance get refunded if not used?

How do gap insurance refunds work?

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