BALTIMORE - A recent settlement with Maryland Attorney General Doug Gansler's office forces AmeriCredit Financial Services to stop collecting on certain conditions of their loans.
Also, AmeriCredit will have to refund all monies it collected in doing so, though it contended it did nothing wrong, Gansler announced Monday.
Gansler alleged the Texas-based company, an automobile financing company, attempted to collect amounts not covered by insurance despite the presence of gap waivers in their contracts.
A gap waiver protects consumers if they are in an accident and their insurance coverage does not cover the balance remaining on the loan. Gansler says it is designed to excuse the consumer from having to pay the difference between his or her insurance coverage and amount still owed.
AmeriCredit will also contact the credit reporting bureaus to reverse any negative comments it reported as a result of consumers not paying.