Migliaccio & Rathod LLP is investigating whether automobile dealerships, financing companies, and Guaranteed Asset Protection (GAP) waiver administrators in Nebraska have improperly failed to issue refunds owed to consumers who canceled GAP protection or paid off their vehicle financing agreements early.
When purchasing or leasing a vehicle, consumers may pay hundreds or thousands of dollars for GAP protection. GAP generally helps address certain remaining loan or lease balances if a vehicle is stolen or declared a total loss and the amount owed exceeds the vehicle’s covered value.
Some consumers purchase GAP protection as part of a multiyear financing agreement but later pay off the vehicle early, refinance the loan, trade in the vehicle, or cancel the protection. Depending on the agreement and applicable law, consumers may be entitled to a refund of some or all of the amount paid for unused GAP coverage.
Nebraska law provides a cancellation period of at least 30 days during which a consumer generally must receive a full refund of the GAP waiver purchase price if no benefits have been provided. After that period, refund rights depend on the agreement and applicable requirements, which may include submitting a timely written cancellation request.
Migliaccio & Rathod is investigating whether dealerships, lenders, or GAP administrators have failed to honor qualifying cancellation requests, improperly denied refunds, or calculated refunds in ways that deprived consumers of money owed under their agreements.
Vehicle Owners May Have Experienced:
- Paying off a vehicle loan early without receiving an available GAP refund;
- Refinancing or trading in a vehicle and being denied a qualifying refund;
- Canceling GAP protection but not receiving the amount owed;
- Being denied a refund despite submitting a timely cancellation request;
- Receiving less than the refund required under the GAP agreement; or
- Having difficulty determining which company was responsible for issuing the refund.
Potential Claims May Include:
- Failure to provide contractually required GAP waiver refunds;
- Improper denial of qualifying cancellation requests;
- Incorrect calculation of unearned GAP protection charges;
- Breach of GAP waiver or financing agreements; or
- Violations of applicable Nebraska GAP waiver or consumer protection laws.
Signs You May Be Affected:
- You purchased or leased a vehicle in Nebraska;
- You paid for GAP protection as part of the transaction;
- You canceled the GAP protection, paid off your loan early, refinanced, or traded in the vehicle;
- You satisfied the applicable requirements for a full or partial refund;
- The dealership, lender, or GAP administrator denied or failed to issue the refund owed; or
- You have your GAP agreement, financing documents, payoff records, or cancellation correspondence.
If you believe you experienced this issue, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.