Skip to Content
Colorado Attorney General

Phil Weiser

Colorado Attorney General

File A Complaint
  • About Us
    • Attorney General Bio & Photos
    • Vision & Values
    • Senior Staff & Organization
    • Colorado Attorney General Annual Report
    • Attorney General Opinions
    • Contact Our Office
  • Sections
    • Administration
    • Business & Licensing
    • Civil Litigation & Employment Law
    • Consumer Protection
    • Criminal Appeals
    • Criminal Justice
    • Natural Resources & Environment
    • Division of Community Engagement
    • Revenue & Utilities
    • State Services
  • Careers
    • Attorney & Other Non-Classified Positions
    • Fellowships
    • Internships
    • Classified Staff Positions
    • Other Opportunities to Join our Team
  • Media Center
    • Press Room
    • Colorado Open Records Act – CORA
  • Resources
    • Survivors of Childhood Sexual Abuse
    • Victim Assistance
    • Budget & Accounting
    • Colorado Privacy Act
    • Code of Colorado Regulations
    • Colorado Revised Statutes
    • Coronavirus Information
    • Data Protection Laws
    • Funding Opportunities
    • Office of Financial Empowerment
    • Student Loans
    • Transparency Online Project (TOPS)
  • Licensing
    • Business Resources
    • Collection Agencies & Debt Collectors
    • Colorado Uniform Consumer Credit Code: Licensing & Notification
    • Debt Management Services Providers
    • Health Club Bonds
    • Repossessors
    • Student Loan Servicers: Licensing
    • Telemarketing
  • Recursos en español

Attorney General Phil Weiser announces Colorado borrowers receive over $9.5 million in multistate settlement with Wells Fargo for unfairly withheld GAP insurance fees

March 3, 2021 (DENVER)— Attorney General Phil Weiser today announced that his office secured more than $9.5 million in refunds for Colorado borrowers who were charged unnecessary GAP insurance fees.

Guaranteed automobile protection (GAP) is often sold to car buyers who finance their purchase. If a buyer’s car is totaled in an accident, the buyer’s insurance typically pays only the fair market value of the car, which can be less than the amount owed on the buyer’s loan. GAP applies in that situation to cancel, or pay off, the remaining balance owed on the loan.

Borrowers pay the full GAP fee when they buy the car, but typically the fee is only earned gradually over the life of the loan. If the borrower pays off the loan early, or if the car is repossessed before the loan is paid off, Colorado law requires that the borrower receive a refund of the unearned portion of the GAP fee.

Through a multistate effort, Colorado learned that Wells Fargo historically had not been refunding unearned GAP fees owed to consumers in Colorado and other states.

“We are committed to protecting hard-working Coloradans, especially from deceptive and illegal practices that cause them significant stress, hardship, and financial losses,” Weiser said. “We are pleased to see this money returned and our message this National Consumer Protection Week is that we will continue demand compliance not only from Wells Fargo but other lending institutions in Colorado as well.”

In December 2018, Colorado entered a settlement with Wells Fargo that required the bank to refund unearned premiums to Colorado consumers, either in the form of cash payments or account credits. The settlement applied to fees Wells Fargo collected in Colorado from June 1, 2008 to July 19, 2018.

On Dec. 28, 2020, Colorado received confirmation from Wells Fargo that it had completed restitution to Colorado consumers of unearned GAP premiums collected by Wells Fargo. In total, Wells Fargo refunded $9,580,950.36 on 51,434 accounts to Colorado consumers. This is inclusive of refunds Wells Fargo made to consumers in other states totaling $82.4 million.

Class action lawsuits are also underway that complement the attorney general’s efforts to ensure Wells Fargo and other institutions comply with the law. Those cases could provide additional financial relief to consumers in Colorado and address the type of conduct at issue.

Borrowers who believe they are owed a GAP fee refund because they paid off a car loan early, or had their car repossessed, should contact the Colorado Attorney General’s Office at uccc@coag.gov, or file a complaint at https://coag.gov/file-complaint/credit-and-debt-complaint/.

###

Media Contact
Lawrence Pacheco
Director of Communications
(720) 508-6553 office | (720) 245-4689 cell
Lawrence.pacheco@coag.gov

Most Recent

Colorado Springs woman charged with stealing $240K from Medicaid in fraudulent billing

May 19, 2022 (DENVER)—Attorney General Phil Weiser today announced that the Colorado Department of Law has filed charges against a Colorado Springs woman for submitting Medicaid claims and being paid for psychological testing services that never happened. An investigation by […]

Colorado Unify Challenge brings together hundreds of Coloradans, inspires hope for the future of the state

99% of Participants Would Recommend the Experience to Family and Friends May 17, 2022 (DENVER) – Over the course of three days in late April, The Colorado Unify Challenge took place, bringing together hundreds of Coloradans from every corner of […]

Comcast customers able to save money on HD television service under agreement with Colorado Attorney General’s Office

May 13, 2022 (DENVER)—Approximately 40,000 Comcast customers can switch without penalty to a new plan that does not include a monthly $9.95 fee for high-definition television service under an agreement Attorney General Phil Weiser announced today. In the early 2000s, […]

Office of the Attorney General
Colorado Department of Law
Ralph L. Carr Judicial Building
1300 Broadway, 10th Floor
Denver, CO 80203

(720) 508-6000

Contact the Office of the Attorney General

Contact

Facebook
Twitter