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8-37-6
Section 8-37-6 Cancellation of GAP waiver agreements. (a) Guaranteed asset protection waiver
agreements shall be cancellable. GAP waivers shall provide that if a borrower cancels a waiver
within the Free Look Period, the creditor, administrator, or other authorized party shall
provide the borrower a full refund of the purchase price of the GAP waiver, provided no benefits
have been provided. In the event a borrower cancels the waiver after the Free Look Period
and no benefits have been provided, the creditor, administrator, or other authorized party
shall provide the borrower a pro rata refund of the purchase price, less any cancellation
fee no greater than fifty dollars ($50) in accordance with the terms of the waiver. (b) In
the event of cancellation of the GAP waiver due to early termination of the finance agreement,
the creditor shall provide, or cause the administrator or retail seller to provide, within
60 days of termination, any refund due to a borrower without requiring the...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/8-37-6.htm - 1K - Match Info - Similar pages
8-37-5
Section 8-37-5 (Effective January 1, 2018) Disclosure requirements. Subject to Section 8-37-7,
a creditor that offers a GAP waiver shall disclose, as applicable, in writing and in clear,
understandable language that is easy to read, all of the following: (1) The name and address
of the initial creditor and the borrower at the time of sale and the identity of any administrator
if different from the creditor. (2) The purchase price and the terms of the GAP waiver, including
without limitation, the requirements for protection, conditions, or exclusions associated
with the GAP waiver. (3) That the borrower may cancel the GAP waiver within a Free Look Period
as specified in the waiver, and will be entitled to a full refund of the purchase price, so
long as no benefits have been provided. If cancelled after the Free Look Period and no benefits
have been provided, the borrower shall receive a pro rata refund less a cancellation fee no
greater than fifty dollars ($50) in accordance with the...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/8-37-5.htm - 2K - Match Info - Similar pages
8-37-4
Section 8-37-4 (Effective January 1, 2018) Reimbursements; coverage; effect of cancellation
or termination. (a) A contractual liability or other insurance policy insuring a GAP waiver
shall state the obligation of the insurer to reimburse or pay to the creditor any sums the
creditor is legally obligated to waive under the GAP waiver issued by the creditor and purchased
or held by the borrower. (b) Coverage under a contractual liability or other insurance policy
insuring a GAP waiver shall also cover any subsequent assignee upon the assignment, sale,
or transfer of the finance agreement. (c) Coverage under a contractual liability or other
insurance policy insuring a GAP waiver shall remain in effect unless cancelled or terminated
in compliance with applicable insurance laws of this state. (d) The cancellation or termination
of a contractual liability or other insurance policy shall not reduce the insurer's responsibility
for GAP waivers issued by the creditor prior to the date of...
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8-37-2
Section 8-37-2 (Effective January 1, 2018) Definitions. For the purposes of this chapter, the
following words have the following meanings: (1) ADMINISTRATOR. A person, other than an insurer
or creditor, that performs administrative or operational functions pursuant to guaranteed
asset protection waiver programs. (2) BORROWER. A debtor, retail buyer or lessee, under a
finance agreement. (3) CREDITOR means any of the following: a. The lender in a loan or credit
transaction. b. The lessor in a lease transaction. c. Any retail seller of motor vehicles
in a retail installment transaction. d. The seller in commercial retail installment transactions.
e. The assignees of any of the foregoing to whom the credit or lease obligation is payable.
(4) FINANCE AGREEMENT. A loan, lease, or retail installment sales contract for the purchase
or lease of a motor vehicle. (5) FREE LOOK PERIOD. The period of time from the effective date
of the GAP waiver until the date the borrower may cancel the GAP...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/8-37-2.htm - 2K - Match Info - Similar pages
8-37-3
Section 8-37-3 (Effective January 1, 2018) GAP waivers authorized; charges; insurance; creditor
requirements. (a) GAP waivers may be offered, sold, or provided to borrowers in this state
under this chapter. (b) GAP waivers, at the option of the creditor that offers the GAP waiver,
may be sold for a single payment or may be offered with a monthly or periodic payment option.
(c) Notwithstanding any other provision of law and subject to Section 8-37-7, any cost to
the borrower for a GAP waiver entered into in compliance with The Truth in Lending Act, 15
U.S.C. ยง1601 et seq., and its implementing regulations, as they may be amended from time
to time, shall be separately stated and is not to be considered a finance charge or interest.
If the charge for a GAP waiver is financed, the charge shall be separately itemized on the
finance agreement. (d) A retail seller shall insure its GAP waiver obligations under a contractual
liability or other insurance policy issued by an insurer. A creditor,...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/8-37-3.htm - 3K - Match Info - Similar pages
8-37-8
Section 8-37-8 (Effective January 1, 2018) Enforcement. (a) The Superintendent of Banks may
take action which is necessary or appropriate to enforce the provisions of this chapter and
to protect GAP waiver holders in this state. After proper notice and opportunity for hearing,
the superintendent may do both of the following: (1) Order the creditor, administrator, or
any other person not in compliance with this chapter to cease and desist from further GAP
waiver-related operations which are in violation of this chapter. (2) Impose a penalty of
not more than five hundred dollars ($500) per violation and no more than ten thousand dollars
($10,000) in the aggregate for all violations of similar nature. For purposes of this chapter,
a violation shall be considered to be of a similar nature if the violation consists of the
same or similar course of conduct, action, or practice, irrespective of the number of times
the action, conduct, or practice which is determined to be a violation of the...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/8-37-8.htm - 1K - Match Info - Similar pages
5-19-4
Section 5-19-4 Additional charges for default or deferral; prepayment; renewal or refinancing;
real property transactions. (a) When a scheduled payment in a consumer credit transaction
is in default 10 days or more, the creditor may charge and collect a late charge not exceeding
the greater of eighteen dollars ($18) or five percent of the amount of the scheduled payment
in default, not to exceed one hundred dollars ($100). The late charge may be collected only
once on any scheduled payment, regardless of the period during which the scheduled payment
remains in default. (b) With respect to the deferral of one or more wholly unpaid scheduled
payments in a consumer credit transaction, in which the finance charge was determined by the
precomputed method, the creditor may collect, by agreement with the debtor either before or
after default, an additional charge for each full month that any wholly unpaid scheduled payments
are outstanding after the due date of each scheduled payment equal to...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/5-19-4.htm - 6K - Match Info - Similar pages
5-19-6
Section 5-19-6 Copies of instruments signed by debtors to be furnished to debtors; required
statement in contracts, etc.; limitation on disclosure requirements; intent, applicability
of limitation. (a) Any creditor, when extending credit with respect to a consumer credit transaction,
other than under an open-end credit plan, shall at that time furnish to the debtor a copy
of each instrument executed by the debtor in connection with the consumer credit transaction.
The consumer credit transaction contract or note shall contain the following statement in
eight point or larger type immediately above the space for the borrower's signature. "CAUTION
- IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT." (b) No disclosures
are required by this chapter to be made by a creditor with respect to any transaction other
than disclosures required by regulations made by the administrator pursuant to Section 5-19-21
and disclosures required by subsection (a) above and by Sections...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/5-19-6.htm - 2K - Match Info - Similar pages
5-19-19
Section 5-19-19 Liabilities of creditor making excess finance charge; failure to obtain license;
damages for deliberate violation or reckless disregard; written notice of violations; oral
statements not admissible; fiduciary duty not created. (a)(1)(i) Any creditor charging a finance
charge in excess of the amount authorized herein, except as specified in subdivision (2),
shall forfeit debtor's actual economic damages not to exceed the finance charge, and shall
refund to the debtor such amount of the actual economic damages, which may be done by reducing
the amount of the debtor's obligation. If the debtor is entitled to a refund and the creditor
refuses to refund within a reasonable time, not to exceed 60 days, after written demand, including
the filing of a legal action, the debtor shall recover a penalty of five times the amount
of the actual economic damages not to exceed the finance charge, but in any event not less
than one hundred dollars ($100). Provided, however, as to any...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/5-19-19.htm - 7K - Match Info - Similar pages
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