GM Financial, an automobile financing company, has agreed to pay more than $1.8 million to resolve allegations that the company’s business practices violated Massachusetts state consumer protection laws.
Attorney General Maura Healey’s office alleged that Americredit Financial Services, Inc., d/b/a GM Financial, failed to pay legally-required interest after delays in providing refunds of Guaranteed Asset Protection (GAP) enrollment fees.
The AG’s Office also alleges that GM Financial failed to provide sufficient information to certain consumers after repossessing their vehicles.
GAP is a product that is intended to limit the shortfall between the payment on an auto insurance claim and the amount a borrower owes on a car loan in the event a financed vehicle is totaled. GAP is sold by car dealers as an add-on product and is often financed as part of an auto loan.
Topics Massachusetts
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