Dealership Stole GAP Insurance or Warranty Money

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Consumers who purchase vehicles from a new or used car dealership often want the protection that an extended warranty and GAP contract offers. Especially with a used car, you never know what issues are going to arise after you purchase and drive off the lot. And you do not want to be stuck with owing more than the car is worth if there is a bad accident and the vehicle is totaled.  From representing numerous consumers in car dealership fraud and warranty cases in Maryland, the lawyers at Whitney, LP know that the protection you have, the better.

Get Your Free Legal Consultation for car dealership fraud at Whitney, LLP. Contact Us Online or call us at (410)-583-8000.

However, there is a common practice that only the most dishonest car dealerships engage in – Stealing the extended warranty or GAP insurance money.

Screen Shot 2019 08 25 at 6.07.37 AM - Dealership Stole GAP Insurance or Warranty Money

Example of a Google Review For a Customer Dealing With a GAP Insurance and  Extended Warranty Dealership Payment Problem

Dealership Did Not Pay the Extended Warranty Company

Used car dealerships are especially known for this scam.  The consumer purchases an extended warranty for their used car, and rolls the price of the warranty into the amount financed. They sign the warranty contract, and should get the extended warranty paperwork and booklet.  Either a few weeks, or months, or years passes, and then there is a problem with the car.

The consumer calls the extended warranty company to make a claim, but is told that they do not have a warranty.  After checking and double checking their paperwork, they cal the dealership to speak with a manager about why their extended warranty company does not have their name on file. If they are able to speak with a manager, their complaints are almost always ignored or met with promises of call backs… and the manager never calls back.

Dealership Did Not Pay the GAP Insurance Company

Similarly, when a dealership does not pay the GAP insurance premium to the insurance company, the consumer can have a huge problem if the vehicle is totaled. The purchase of GAP insurance covers the difference between what the vehicle is worth and what the insurance company will pay based on what they evaluate it is worth. That difference can be over $10,000, and is a risk that consumers want to protect against.

Once the consumer calls the GAP insurance company and is told they do not have coverage, they usually then call the dealership to ask what happened to the GAP insurance payment. After getting the run around for weeks or months, they come to realize they have been cheated and the dealership will not make it right.

When the dealership steals the GAP insurance money, the consumer will be stuck being responsible for the difference.  Unless, they file an MVA complaint and hire an attorney to represent their interests and fight the dishonest dealership.  The GAP insurance consumer attorneys at Whitney, LLP represent consumers who have been cheated by dealerships.

What Should I Do When the Dealership Steals Warranty or GAP Money?

First, file a complaint with the Motor Vehicle Administration.  The link to filing dealer complaints in Maryland is here.  The complaint process can take 30 to 60 days, or more, but should lead to a resolution.  However, there are other options that may allow the consumer to recover compensation for being cheated.

Second, call the attorneys at Whitney, LLP – we’ve helped many consumers who have been defrauded by car dealerships, including from extended warranty money being stolen, customer’s signatures being forged, financing contracts revoked without notice, and many other dishonest practices. We can also take care of filing the MVA complaint and working through that process to ensure the investigator has all of the information they need to make the correct finding for the consumer.

Lawyer for Dealership Stealing GAP Insurance and Warranty Money

If you have been a victim of dealership extended warranty or GAP insurance nonpayment fraud, Whitney, LLP can help.  We have successfully represented many individuals against dishonest car dealerships in Maryland.

Get your Legal Consultation Now – Contact Us Online or call us at (410) 583-8000.


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