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#2260506 - 09/30/21 03:38 PM Indirect Auto, Ancillary Products, and UDAAP
InFairness, CRCM Offline
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InFairness, CRCM
Joined: Nov 2010
Posts: 568
USA
Any thoughts on the recent class action settlement on refunds of GAP fees when auto loans are repaid early?

GAP Refund Settlement

The non-statutory subclass sounds an awful lot like a general UDAAP claim, since the refunds weren't required under state law.
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Fair Lending
#2260524 - 09/30/21 05:02 PM Re: Indirect Auto, Ancillary Products, and UDAAP InFairness, CRCM
rlcarey Offline
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rlcarey
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Galveston, TX
That about sums up the way I read it. Without the ability to rely on state laws that explicitly bind Wells Fargo to pay Early Payoff GAP Refunds, the Non-statutory Subclass Members do not have as strong of a case against Wells Fargo and must submit an actual written claim.
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#2260557 - 09/30/21 10:30 PM Re: Indirect Auto, Ancillary Products, and UDAAP InFairness, CRCM
Rocky P Offline
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Joined: Jun 2003
Posts: 7,243
Florida
I had recommended against GAP to a bank. The SVP of consumer loans was pushing it for the income and secondly, Fair lending concerns were that they were usually pushed harder to ethnic, racial and gender minorities, those that might feel less secure in getting a loan, and felt they needed to buy GAP to get the loan.
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