IN 2001 we were buying car from royal chrysler. and had gap insurance inclued in our payments and they refused to refund our money to us after we finsh paying the car off. if anyone els had this type of probem please e-mail me (((ROR REDACTED EMAIL FOR SECURITY PURPOSES)))

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

Louise

millersville, Pennsylvania
U.S.A.

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7 Updates & Rebuttals

S. K.

Oneonta,
New York,
U.S.A.

Dealer & President

#2REBUTTAL Owner of company

Sat, March 28, 2009

Mistaken identity - vehicle in complaint sold by another dealer - Royal Chrysler of Owego, NY and NOT Royal Chrysler of Oneonta, NY. - Steve Harris Pres. of Oneonta, NY - RCOn @ 607-432-9300

Dave

Jacksonville,
Florida,
U.S.A.

Nope, I am correct

#3Consumer Comment

Thu, January 18, 2007

I had 2 gap policies, both times I traded the cars in by the 2nd year, and both times I received a pro-rated refund of the GAP insurance. I was sold these polices thru the dealer (Acura and Toyota). I had no problem collecting the money. All I did was fax the payoff letter I received from the bank on the cars and I got a check in a few weeks. However, in this case, the last poster said the same thing I did, if you had the car for the full term, you wouldn't be entitled to a refund.

Michael

Barnegat,
New Jersey,
U.S.A.

I think I might know what happened

#4Consumer Suggestion

Thu, January 18, 2007

When you paid off your car, did you receive a letter from the finance company stating you are entitled to refunds for insurance purchased in your contract? The letter would state you are entitled to refunds on Life and Disability insurance, gap insurance or extended service contracts. Was this what took place? Your story isn't very specific, but I have a feeling this is a question of miscommunication or misunderstanding. Gap insurance is indeed cancellable, but if you carried your contract to the full term, you would not be entitled to a refund. Gap insurance protects for the life of your loan, and if you paid your loan off as per the terms of the contract, you had gap protection for the full term of the contract. You would have used the entire gap policy, so of course, you would not be entitled to a refund. It would be like buying a car, putting collision insurance on it, driving it for four years, then selling it and expecting to get a refund simply because you never had an accident with it. Insurance is there to protect you, and if you utilize it you are not asked to pay extra- you are simply using the insurance. In this case, it sounds like you had the gap policy, but never needed it. If your loan was five years, and you paid it off in five years, you would not get a refund for gap.

John

Roseville,
Illinois,
U.S.A.

Sorry Dave...have to beg to differ...

#5Consumer Suggestion

Thu, January 18, 2007

No disrespect intended and maybe things are different in Florida or maybe you are familiar with a policy sold on the internet ( I understand they may have different terms) but every GAP policy I've seen sold at a dealership or sold through a bank has a short period for refund eligibility. Extended warranties, life & disability, and other insurance options are indeed prorated.

Louise

millersville,
Pennsylvania,
U.S.A.

royal chrysler

#6Author of original report

Wed, January 17, 2007

my contract doesnot have any dates or time frams for this insuranceon it. my contact said that when the car is pay off that i get a refund on the gap insurance.

Dave

Jacksonville,
Florida,
U.S.A.

Actually, that is incorrect

#7Consumer Suggestion

Wed, January 17, 2007

Gap insurance is cancelable anytime before the contract is up. You will receive a pro-rated amount back. So, if you traded the car 2 years into a 5 year contract, you will get 3 years of GAP insurance as a refund. However, if you pay the car for the full term of the loan, you are not entitled to any of the GAP back, as it is an insurance policy. So, if you had GAP insurance on a 5 year loan, and it was paid off in 5 years, you do not get a refund.

John

Roseville,
Illinois,
U.S.A.

Check your contract...

#8Consumer Suggestion

Wed, January 17, 2007

GAP insurance is generally not refundable unless cancelled in the first 30 or 60 days after purchase-differs with each provider but this is standard. Banker John

Reports & Rebuttal