DENVER–Three credit unions in Colorado are issuing refunds to some borrowers related to guaranteed auto protection (GAP) payments following an investigation by Attorney General Phil Weiser.
The three credit unions––Ent Credit Union, Premier Members Credit Union and Credit Union of Denver have distributed combined refunds totaling more than $6 million, according to BizWest.com.
“An investigation into all three credit unions revealed those payments were sometimes never given to borrowers. In the settlement, Colorado Springs-based Ent Credit Union refunded money to 19,011 borrowers, Boulder-based Premier Members Credit Union refunded money to 2,563 borrowers and Credit Union of Denver refunded amounts paid to 744 borrowers,” BizWest.com reported.
Said Weiser in a statement, “When a consumer purchases GAP coverage and their car is then totaled, paid off, or repossessed, withholding payments to which they are entitled is unfair and illegal,” Weiser said in a statement.