DENVER (KDVR) — BBVA USA — formerly Compass Bank — and Air Academy Federal Credit Union are refunding Colorado borrowers GAP fees inappropriately kept by both companies.
Attorney General Phil Weiser announced on Sept. 27 that both BBVA and AAFCU are required to refund GAP fees to their eligible customers. A GAP — Guaranteed Automobile Protection — fee is an add-on purchase sold to car buyers financing their car purchase.
If a borrower pays off their loan early, or the car is repossessed before a loan is paid off, state law stipulates the lender must refund the GAP fee to the borrower.
An investigation by the Colorado Attorney General’s office discovered BBVA USA and AAFCU both failed to refund GAP fees to their eligible Colorado customers. BBVA must refund their customers around $1.68 million. AAFCU is still determining how much they must return to their customers.
“I am pleased that this money will be returned to Colorado residents and service members who paid for GAP when they purchased a vehicle. We will continue demanding compliance from lending institutions in Colorado to protect all consumers,” said Colorado Attorney General Phil Weiser.
Coloradans who believe they may be owed a refund by either of these companies can file a complaint here.