C.R.S.
Section 5-9.3-106
Cancellation of GAP agreement
(1)
The original creditor must refund to the consumer the unearned GAP fee paid pursuant to the GAP agreement if:(a)
The finance agreement is prepaid prior to maturity or the motor vehicle is no longer in the consumer’s possession due to the creditor’s lawful repossession and disposition of the collateral; and(b)
The consumer has not made a claim under the GAP agreement.(2)
Intentionally left blank —Ed.(a)
If the GAP agreement is provided as a contractual term of the finance agreement, any refund issued must be calculated using a pro rata method or any other method approved by the administrator.(b)
If the GAP agreement is provided as insurance, any refund issued must be calculated using a method authorized under applicable insurance statutes, rules, or interpretations of the commissioner of insurance pursuant to title 10.(3)
Intentionally left blank —Ed.(a)
In the event that the consumer finance agreement has been assigned to a person other than the original creditor, the assignee shall send notice to the original creditor requesting, on behalf of the consumer, a refund of the unearned GAP fee pursuant to the GAP agreement. Upon receipt of such notice from the assignee, the original creditor shall provide the unearned GAP fee to the consumer within thirty days.(b)
If the original creditor has not refunded the unearned GAP fee to the consumer within thirty days pursuant to subsection (3)(a) of this section, the assignee shall provide the refund to the consumer, and the original creditor or GAP administrator shall reimburse the assignee for the amount of such refund no later than forty-five days after the original creditor or GAP administrator has received notice from the assignee.(4)
A cancellation fee of not more than twenty-five dollars may be charged to a consumer if the consumer cancels the GAP agreement more than thirty days after the effective date of the GAP agreement.
Source:
Section 5-9.3-106 — Cancellation of GAP agreement, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-05.pdf (accessed Oct. 20, 2023).
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