topic Re: Please help with GAP cancellation refund in Auto Loans

Please help with GAP cancellation refund

Anonymous — Thu, 09 Aug 2018 22:21:50 GMT

I bought a Ducati 7/23/2016 from Pete's Cycle in Baltimore.

Financed for 72 months

Paid for $695 for GAP (oops)

Sold it July 2018, and sent a letter to the dealer requesting refund.

Got a check for $122.03 today.

used 1/3 of the term and get back 1/6?

Seems fishy to me, any other experiences?

Contract said to contact dealer for refund "using the pro-rata method", does not mention cancellation fees

GAP administator is Jim Moran & Associates.

Thanks for any help and time...

Re: Please help with GAP cancellation refund

sccredit — Thu, 09 Aug 2018 23:35:48 GMT

Send them a certified letter requesting an accounting of the refund.

Re: Please help with GAP cancellation refund

Anonymous — Fri, 10 Aug 2018 14:04:47 GMT

Call the GAP company themselves directly, and ask what the customer refund amount should have been on your account. They should tell you the amount you were intended to recieve.

Sounds like the dealer may have possibly sent you their portion of the refund rather than the customer's entitled amount.

If cost on GAP is $300 and they sell it for $695 on a 60 month contract, and the customer pays off the loan at 30 months (for math simplicity) the dealer should recieve a check for $150 dollar's from the GAP company and the dealer owe's the customer $347.50.

GAP companie's typically don't send the dealer the full customer's refund, because the dealership is charged back the profit that was lost on the pre-paid contract, so it's possible the dealer sent "their" portion instead of "your refund amount" in error or on purpose.

Re: Please help with GAP cancellation refund

Anonymous — Fri, 10 Aug 2018 21:46:02 GMT

Thanks for everyones help!

I called the GAP Ins company, and they were very helpful.

They told me that the dealership lets them know that the policy was canceld, and they tell the dealer how much to refund me.

They told the dealer 68.81% or $478.2295 should be refunded to me.

I called the dealership and the finance people were out, but was assured by the receptionist that they will take care of me Monday.

Maybe it was just a mixup, but my first reaction was foul play of course.

Re: Please help with GAP cancellation refund

Anonymous — Sat, 11 Aug 2018 14:38:23 GMT

Good deal, GAP companie's typically refer you to the dealer as the dealer handle's cancellations, so it was nice that they were helpful to you and gave you the correct amount.

It could be foul play, or it could simply be a clerical error in that the office manager accidentally wrote the "dealer refund" portion to you, rather than the "customer refund" amount.

Hope you get everything taken care of, seem's you are definately on the right track though!