Gap Refund Check Question
I just refinanced my auto loan but didn’t change my insurance. Now, I’ve received a gap refund check for about $700. I’m uncertain about what to do with it: should I take it to the bank that refinanced my car, give it to my insurance company, or cash it and keep the money? I wasn’t expecting this refund, and I’m worried about cashing it and possibly owing money later. Since the car dealership required a gap loan with the original bank, I assume the new bank might have similar requirements. Any advice on who I should contact regarding this? Thanks!
It’s great that you received a gap refund check! Here’s what you can consider doing:
Contact Your Original Lender: Since the gap insurance was tied to your original auto loan, it would be wise to contact your original lender to confirm the details regarding the refund check. They should clarify whether that check is meant to go to them or if it’s yours to keep.
Check with the Refinancing Bank: You should also reach out to the bank that refinanced your car loan. They can provide insight into how gap insurance applies with the new loan and whether you need to take any action regarding the refund.
Keep the Refund Check Separate: Until you receive confirmation from either lender, it’s advisable not to cash the check. Holding onto it as you seek advice can protect you from any potential complications later.
Consult Your Insurance Provider: While it’s unlikely you’ll have to give it to your insurance company, it might be a good idea to check in with them just to understand what implications, if any, there could be.
In short, reaching out to both lenders and keeping the refund check in a safe place until you have clarity would be the best course of action.