Gap Refund Check Inquiry
I recently refinanced my auto loan but didn’t change my insurance coverage. I just received a gap refund check for about $700. I’m unsure what to do with it: should I deposit it in the bank that refinanced my car, return it to my insurance company, or just cash it and keep the money? I wasn’t expecting this check, and I’m hesitant to cash it and risk owing money later. Since the dealership required the original bank loan for the gap coverage, I assume the new bank might have similar regulations. I’m at a bit of a loss here about who to contact for guidance.
It’s great that you received a gap refund check! Since this check is related to your previous loan and gap insurance, it’s important to handle it correctly. Here are a few steps you could consider:
Contact the Lender: Start by reaching out to the bank or lender that refinanced your auto loan. They can provide clarity on what to do with the refund. They might want to apply it towards your new loan or have specific instructions for you.
Check with the Insurance Company: You might also want to call your insurance company to understand how the refund might affect your coverage going forward. They can clarify whether you need to do anything with the gap coverage since you refinanced.
Avoid Cashing It Right Away: Given your concern about possibly owing money later, it’s wise not to cash the check immediately. Instead, get confirmation from your lender or insurance company on how to proceed.
Document Everything: Keep a record of all your communications and any instructions you receive regarding the refund. This will help protect you if any questions arise later.
Ultimately, contacting your new lender is likely the best first step. They should guide you on how to appropriately handle the refund.