Section 5-9.3-104 - Guaranteed asset protection fees(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.
Added by 2023 Ch. 425,§ 3, eff. 1/1/2024.2023 Ch. 425, was passed without a safety clause. See Colo. Const. art. V, § 1(3).