HB99 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 99 would extend the GAP waiver refund deadline after early termination from 60 to 120 days and require the refund to be provided without the borrower's request.

What This Bill Does

If passed, the bill would require creditors, administrators, or retail sellers to issue any refund due for a canceled GAP waiver within 120 days of termination when the finance agreement ends early, without the borrower having to ask. It maintains existing refund rules for cancellations within the free-look period and pro rata refunds after the free-look period, including the possibility of reducing the amount owed. Refunds may be applied to reduce the loan balance unless the borrower has already paid the loan in full. The act also specifies when it would take effect.

Who It Affects

• Borrowers who have guaranteed asset protection (GAP) waivers on motor vehicle loans; they would receive refunds within 120 days after termination of the loan.
• Creditors, administrators, and retail sellers of motor vehicles; they would be responsible for providing the refund within 120 days and may apply the refund as a reduction of the amount owed.

Key Provisions

• Extends the refund period for GAP waiver cancellations due to early termination from 60 days 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.
• Allows the refund to be used as a reduction of the amount owed on the finance agreement unless the loan has been paid in full.
• Effective date: becomes law on the first day of the third month after passage and governor approval.

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