Gap Refund Check Dilemma
I just refinanced my auto loan, but I didn’t change my insurance. Now I’ve received a gap refund check for about $700. I’m unsure what to do with it—should I take it to the bank that refinanced my car, give it to my insurance company, or just cash it and keep the money? I wasn’t expecting this $700 and I don’t want to cash it only to face a repayment issue later. Since the car dealership required the original bank loan to get the gap insurance, I assume the new bank may have similar requirements. I’m not sure who I should reach out to for guidance. Any advice?
It sounds like you have a bit of uncertainty about what to do with your GAP refund check. Here are a few steps you can take to clarify your situation:
Read the Check Details: First, check the wording on the memo line of the check. Sometimes, it specifies if it needs to be deposited into a specific account or if it’s intended for a particular purpose.
Contact the Refinancing Bank: It’s a good idea to reach out to the bank that refinanced your auto loan. They can provide guidance on whether you should deposit the refund check with them or if it can be used in any other way.
Ask Your Insurance Company: If you’re uncertain, contacting your insurance company can also help clarify if they need any information about your GAP coverage or the refund.
Keep Records: Make sure to keep a record of the refund and any conversations you have regarding it. This could be helpful if there are any questions down the road.
Consider Cashing or Depositing: Depending on the advice you receive, you may have the option to cash the check. However, if the bank indicates you should use it to pay down your refinanced loan or if there are any conditions attached to it, it’s best to follow their direction.
Ultimately, getting in touch with both financial institutions involved is the best way to ensure you’re handling the situation correctly and won’t owe anything later. Good luck!