A bill seeking to modify the termination and refund provisions of Alabama’s GAP law was recently introduced in the state.
Current law requires that in the event of cancellation of a GAP waiver due to early termination of the associated finance agreement, the creditor must issue any refund due to the borrower within 60 days of cancellation, without requiring the borrower to request cancellation of the waiver. House Bill 99 proposes to extend that period to 120 days.