For years, consumers have been offered costly add-on products to their loans such as service contracts. One type of service contract is guaranteed auto protection, also known as “GAP insurance.” GAP insurance is oftentimes bundled into car loans from auto lenders who have misled customers into believing it is required as part of their auto loan. This is a common tactic used by auto lenders in their attempt to squeeze even more money out of consumers.

This consumer alert discusses GAP insurance and CFPB enforcement activity against auto lenders.

Read the full alert here.