Effective January 1, 2018
Terms Used In Alabama Code 8-37-5
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 terms of the waiver.
(4) The procedure the borrower is required to follow in order to obtain GAP waiver benefits under the terms and conditions of the waiver, including a telephone number and address where the borrower may apply for waiver benefits.
(5) The procedures for cancelling the GAP waiver and requesting any refund due pursuant to Section 8-37-6.
(6) That neither the extension of credit, the terms of the credit, nor the terms of the related motor vehicle sale or lease, may be conditioned upon the purchase of the GAP waiver.
(7) That the cost of the GAP waiver is not regulated and that the borrower should determine whether the cost of the GAP waiver is reasonable in relation to the protection afforded by the GAP waiver.