Title 37, Consumer Protection Code

For purposes of this chapter: (1) "Borrower" means a debtor, retail buyer, or lessee under a finance agreement. (2) "Creditor" means a person, who in connection with the initial financing of the sale, or leasing, of a motor vehicle, is: (a) a lender in a loan or credit transactio…

(A) The offering and sale of GAP waivers in this State are subject to the provisions of this chapter. (B) GAP waivers, at the option of the creditor, may be sold for a single payment or may be offered with a monthly or periodic payment option. (C) Notwithstanding another provisio…

(A) A contractual liability or other insurance policy insuring a GAP waiver must 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 bo…

(A) A GAP waiver must include the following terms in clear, easily understandable language: (1) the name and address of the initial creditor and the borrower at the time of sale and the identity of any manager if different from the creditor; (2) the purchase price and the terms o…

(A)(1) A GAP waiver must include a term stating that if a borrower cancels the waiver within the free-look period, the borrower is entitled to a full refund if no benefits have been provided under the GAP waiver. (2) A creditor may not charge a fee to a borrower related to the ca…

Pursuant to Chapter 6, Title 37, the Administrator of the Department of Consumer Affairs may take action necessary to enforce the provisions of this chapter and to protect GAP waiver holders in this State.

A consumer who suffers loss by reason of a violation of this chapter may bring a civil action to enforce the provisions, and if successful in the action, shall recover actual damages, reasonable attorney's fees, and court costs incurred by bringing the action.