§ 5-9.3-104 — Guaranteed asset protection fees

Colorado § 5-9.3-104

• Jurisdiction: Colorado
• Title 05: Consumer
• Art.: Guaranteed Asset Protection Agreements

Text

(1) (a) The maximum GAP fee
that a creditor may charge for a GAP agreement must not exceed four percent of
the total amount financed in the finance agreement, or six hundred dollars,
whichever amount is greater.

(b) This subsection (1) does not apply to any GAP agreement that is subject
to regulation by the division of insurance pursuant to title 10.

(2) (a) A creditor may contract for, charge, and receive only one GAP fee as
part of a GAP agreement, regardless of the number of co-borrowers, cosigners, or
guarantors in the finance agreement.

(b) In the event that the GAP agreement has been sold and a valid claim has
been made, the creditor may not seek indemnification from the consumer, co-borrowers, cosigners, or guarantors.

(3) Every finance agreement that includes a GAP fee for a GAP agreement
shall contain, either in the finance agreement or GAP agreement signed by the
consumer, the following statement:

If this transaction contains a fee, charge, or premium for guaranteed asset
protection, all holders and assignees of this consumer credit transaction are
subject to all claims and defenses that the consumer could assert against the
original creditor resulting from the consumer's purchase of the guaranteed asset
protection.

Legislative History

Source: L. 2023: Entire article added, (HB 23-1181), ch. 425, p. 2501, � 3, effective January 1, 2024.