On Demand Webinar

Important New GAP Rules
For California Auto Financing Contracts

A NorthLegal Webinar presented November 8, 2022
Duration: 2:15 hrs:minutes

Cost | How to Attend | How to Obtain Handouts Register

Does your financial institution finance motor vehicles in California? Do your contracts sometimes include GAP coverage? If so, you need to prepare soon to comply with important new California laws that take effect on January 1, 2023!

The new law directly applies when GAP is financed as part of a motor vehicle financing contract to a California borrower (regardless of where the contract is made), although it may also apply to California contracts involving non-California borrowers or even to non-California contracts to non-California borrowers in some cases. Among other things, the new law —

• Prohibits the sale of GAP under certain circumstances

• Sets a maximum fee that may be charged for GAP

• Requires certain disclosures be given at the time GAP is purchased

• Requires certain information be given to the consumer when the sales contract is sold to a financial institution

• Requires certain information be provided every time an intemized balance is given to the consumer (including in demand letters, payoffs, and notices of sale)

• Provides that GAP coverage automatically terminates when certain events occur

• Puts the burden on the financial institution holding the contract to obtain a refund of the unearned GAP premium whenever coverage terminates (with certain exceptions)

• Places limits on how the GAP refund may be applied or paid

• Imposes record keeping requirements

During this online training program, attorney Eric North discusses each of these requirements in detail and outlines specific actions financial institutions should take both before buying a contract that includes GAP and during the entire term of the contract. Eric also discusses how the new law may impact financial institutions that sell their own GAP policies!

This program is intended for everyone who deals with GAP policies, who purchases motor vehicle financing contracts, who collects motor vehicle financing contracts, and who gives itemized balance statements to borrowers under motor vehicle financing contracts.


NOTE: This program is intended only for employees of consumer lending institutions. Please contact NorthLegal Training and Publications to obtain approval before registering if you are not an employee of a consumer lending institution.

The fee to attend this archived program is $190.00 if paid by credit card or $200.00 if paid by check. For that fee, you or someone from your financial institution may view this program as often as you like for a period of 180 days. (NOTE: If your financial institution registered for the live program, you already have free access to the archvied version for six months! Contact NorthLegal for information.)

How to Attend an On Demand Webinar | How to Obtain Handouts
To attend this NorthLegal Webinar, please do the following:

Register.  To register online using a credit card, visit the "Register" link, above. To register by mail, call NorthLegal at 623.537.7150.
Check your email. Within moments after you complete the registration process you should receive two emails.  One will be a receipt for the transaction and the other will contain a link and instructions explaining how to use that link to attend the program. 
Download the handout materials using the link appearing in the confirmation email. The confirmation email also includes the password needed to open the materials.
» NorthLegal Webinars
Speaker: Eric North

Eric North, the primary speaker at the programs listed on this site, has represented the interests of credit unions and other financial institutions as an attorney with respect to litigation, compliance, governance, bankruptcy and collections matters since 1984. Eric has appeared in state and federal courts throughout the State of California, and has argued before the Ninth Circuit Court of Appeal.

Eric is also a nationally recognized speaker on legal issues relating to consumer lending institutions, and has presented hundreds of programs on behalf of national, state and local leagues and associations from around the country.

Live program scheduling conflict?

No problem! Registration for a NorthLegal webinar automatically entitles you to watch it live AND to watch the archived version as many times as you like for six months! 

If you or your staff can't make the live program, you still have plenty of time to watch when it is more convenient for you!