Bill > HB1181

This bill codifies and updates the existing rules and regulations regarding Guaranteed Asset Protection (GAP) agreements in Colorado. Key provisions include: - Defining GAP agreements as either an insurance policy or contractual term that protects consumers in the event their motor vehicle is deemed a total loss. - Requiring creditors to provide clear disclosures to consumers about the GAP agreement, including that it is optional, the fee amount, and the consumer's right to cancel within 30 days for a full refund. - Capping the maximum GAP fee at 4% of the total amount financed or $600, whichever is greater. - Specifying how the deficiency balance should be calculated and paid or waived under the GAP agreement. - Allowing consumers 90 days after a loss settlement or notice of a deficiency balance to file a claim. - Prohibiting the sale of GAP agreements in certain circumstances, such as if the consumer is ineligible or the loan terms exceed the maximum loan-to-value ratio. - Designating the Administrator under the Uniform Consumer Credit Code to enforce the provisions of this law.

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https://leg.colorado.gov/bills/hb23-1181