ARKANSAS (KNWA) — Arkansans who buy vehicles and purchase Guaranteed Asset Protection (GAP) waivers will now have the opportunity to cancel waivers without penalties.
Consumers in the market to buy new vehicles will have this new opportunity beginning July 24. This is a new state law, which is a provision of Arkansas House Bill 1672.
Guaranteed Asset Protection Alliance will establish a “free look period” of 30 days for GAP waivers, according to a news release. During those 30 days, anyone will be allowed to cancel their waiver without penalty, fee or costs.
“A GAP waiver is an important option for people financing an automobile purchase. With the free-look period, it ensures that any and all options have been disclosed to understand that your debts may be waived in the event an accident occurs,” said Tim Meenan, executive director of GAPA.
A GAP waiver agreement between borrowers and finance companies allows cancellation of up to all of the existing loan debt after a total loss. The waiver can provide financial security for the vehicle, the release states.