HB479 Alabama 2018 Session

Summary

Primary Sponsor

Jimmy Martin

Republican

Session

Regular Session 2018

Title

Motor vehicle, guaranteed asset protection waiver increase the fine for providing a refund, Sec. 8-37-6 am'd.

Summary

HB 479 would extend the GAP waiver refund deadline from 60 to 120 days after early termination of the loan.

What This Bill Does

The bill amends the GAP waiver rules to require creditors or administrators to pay any refund due to a borrower within 120 days of early termination, without the borrower needing to request cancellation. It keeps existing refund rules for other cancellation scenarios, such as full refunds during the free look period and pro rata refunds after the free look period (minus up to $50 for cancellation fees) if no benefits were provided. The refund can be applied as a reduction of the amount owed unless the loan has already been paid in full. The act takes effect on the first day of the third month after passage and governor approval.

Who It Affects

• Borrowers with guaranteed asset protection (GAP) waivers on financed vehicles: will receive refunds within 120 days after early termination of the finance agreement, without having to request cancellation.
• Creditors, administrators, or retail sellers: must ensure refunds are provided within 120 days of termination and must handle cancellation without requiring borrower action.

Key Provisions

• Extends the refund period for early termination of a GAP waiver from 60 to 120 days.
• Requires the creditor, administrator, or retail seller to provide the refund within 120 days of termination without the borrower needing to request cancellation.
• Refunds under existing provisions may be applied as a reduction of the amount owed unless the finance agreement is paid in full; refunds from other cancellation scenarios follow the current free look and pro rata rules, including a possible cancellation fee not exceeding $50.
• Amends Section 8-37-6 to reflect the above changes and clarifies when refunds are due.
• Effective date: the first day of the third month after the bill is passed and approved.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles