AL HB479

Amends Section 8-37-6 of the Alabama Code to extend the refund period for guaranteed asset protection (GAP) waivers from 60 days to 120 days when canceled due to early termination of a finance agreement.

Requires creditors or administrators/retail sellers of motor vehicles to provide refunds to borrowers within the 120-day period without requiring the borrower to request cancellation.

Maintains existing refund provisions for cancellations within the Free Look Period (full refund) and after the Free Look Period (pro rata refund less up to $50 cancellation fee).

Permits creditors to apply cancellation refunds as a reduction to the remaining finance agreement balance unless the borrower demonstrates the agreement has been paid in full.

Takes effect on the first day of the third month following passage and approval by the Governor.