State Law Guide - Updated January 2026
Colorado GAP/VSC Refund Demand Rights
Under Colorado HB23-1181 + UDAP, Colorado gives you the right to cancel and receive refunds on F&I products. Dealers who fail to comply face UDAP penalties plus actual damages.
Quick Answer
In Colorado, you can cancel dealer add-on products at any time. Refunds must be issued within 60 days. You can sue in Small Claims Court for up to $7,500.
Purchased F&I products in Colorado?
Check your cancellation rights
Key Colorado Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Disclosure Requirement | Mandatory (HB23-1181) | Dealer must explain refund rights at purchase |
| Cancellation Fee | Must be disclosed | Fee must be clearly stated in contract |
| Refund Deadline | 60 days typical | Refund within 60 days of request |
| UDAP Protection | Applies | Can sue under Unfair Practices Act |
| Pro-Rata Refund | Required | Entitled to unused portion of GAP |
Disclosure Requirement
Mandatory (HB23-1181)Cancellation Fee
Must be disclosedRefund Deadline
60 days typicalUDAP Protection
AppliesPro-Rata Refund
RequiredWhat Colorado Law Requires
Your Cancellation Rights
Under Colorado HB23-1181 + UDAP, Colorado consumers have the right to cancel F&I products purchased from dealers.After this period, you're still entitled to a pro-rata refund based on unused time or mileage.
Refund Timeline
Once you submit a cancellation request, the dealer or administrator has 60 days to process your refund. Failure to comply may result in UDAP penalties plus actual damages.
Special Colorado Provision
Mandatory refund disclosure at point of sale
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Penalty Provisions
Late fees & damages
$39 - Avg Colorado refund: $530 - Potential 13x return
Frequently Asked Questions
What is HB23-1181 for GAP insurance in Colorado?
HB23-1181 (effective 2024) requires Colorado dealers to clearly disclose your right to cancel and receive refunds on GAP insurance at the time of purchase. This ensures consumers understand their refund rights.
Can I get a GAP refund in Colorado if I pay off early?
Yes. You're entitled to a pro-rata refund of unused GAP coverage. The cancellation fee (if any) must have been disclosed in your contract per HB23-1181.
What if a Colorado dealer doesn't honor my refund?
You can sue under Colorado's Unfair Practices Act (UDAP) for actual damages and potentially additional penalties. File a complaint with the Colorado Attorney General first.
Where do I file a complaint in Colorado?
File complaints with the Colorado Attorney General Consumer Protection Division or the Colorado Auto Industry Division.
Colorado Regulatory Contacts
If you need to file a complaint or seek assistance, contact these official agencies:
Contact information is provided for reference. Verify current details on official agency websites.
Compare Other States
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Based on Colorado HB23-1181 + UDAP