The Colorado Attorney’s General Office secured over $120,000 for 171 Coloradans who did not receive their guarantee automobile protection (GAP) from a Lakewood company.

GAP insurance is an optional benefit offered to car buyers that will cancel or pay the remaining balance of a loan that is not covered by insurance if the vehicle is totaled.

“We are committed to ensuring hardworking Coloradans receive the full GAP benefits they are entitled to,” said Attorney General Phil Weiser. “Our office will protect consumers by holding accountable institutions that fail to fully pay the amounts owed for GAP coverage or keep charging GAP coverage after a vehicle is already paid off.”

An investigation by the attorney general’s office found that American Assurance Corporation of Lakewood did not always pay full covered owed to Coloradans. AAC acts as a GAP administrator between lenders, dealers and customers.

The company voluntary acknowledged its behavior and agreed to pay the amount due to Coloradans, and because of this the attorney general’s office did not seek additional payments. 

Earlier this year, Weiser was apart of a multistage settlement with Wells Fargo that secured more than $9.5 million in refunds for Coloradans who were not refunded GAP fees for unneeded coverage.