State Law Guide · Updated January 2026
If you paid off your loan early, you're owed a GAP refund. Most people never claim it.
Connecticut GAP/VSC Refund Demand Rights
Under Connecticut Public Act 23-137 (SB 1033), Connecticut consumers who pay off auto loans early are entitled to pro-rata GAP and warranty refunds. Dealers who fail to comply face Regulatory penalties plus actual damages.
Quick Answer
In Connecticut, you're entitled to a pro-rata refund of unused GAP insurance and warranty products when your loan is paid off early. Refunds must be issued within 60 days. You can sue in Small Claims Court for up to $5,000.
Paid off your auto loan early in Connecticut?
Check your rights under Connecticut law
Key Connecticut Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Cancellation Fee | Max $50 | Fee cannot exceed $50 regardless of GAP cost |
| Pro-Rata Refund | Required | Entitled to unused portion minus max $50 fee |
| Refund Deadline | 60 days | Refund must be issued within 60 days |
| Disclosure | Required at purchase | Dealer must disclose cancellation terms |
| Banking Dept Oversight | Active | File complaints with Dept of Banking |
Cancellation Fee
Max $50Pro-Rata Refund
RequiredRefund Deadline
60 daysDisclosure
Required at purchaseBanking Dept Oversight
ActiveWhat Connecticut Law Requires
Your Refund Rights
Under Connecticut Public Act 23-137 (SB 1033), Connecticut consumers who pay off auto loans early are entitled to pro-rata refunds on unused GAP insurance and warranty coverage. You're entitled to a pro-rata refund based on unused coverage time.
Timeline
Once you submit your request, the dealer or administrator has 60 days to respond. Failure to comply may result in Regulatory penalties plus actual damages.
You already paid for coverage you're no longer using. The dealer and administrator owe you a refund — they just won't send it unless you ask. Upload your contract to see exactly how much.
How It Works
Upload Contract
Upload your loan payoff letter or F&I contract
AI Calculates Refund
Pro-rata refund calculated based on unused coverage
Get Demand Letter
Download a letter with state-specific penalty citations
Get a Demand Letter That Cites Connecticut Law
Our tool generates a formal gap/vsc refund demand letter citing Connecticut Public Act 23-137 (SB 1033) and state-specific provisions for maximum leverage.
Demand Letter
State-specific statutory citations
Pro-Rata Calculator
Know exactly what you're owed
Penalty Provisions
Late fees & damages
"After finishing payments on my Honda, the dealership ghosted me on the GAP refund. Sent a demand letter and had $490 within three weeks."
— Bridgeport, CT
$39 to recover up to $560. That's a 14x return.
Frequently Asked Questions
Do I get a GAP refund if I pay off my car early in Connecticut?
Yes. Under Connecticut Public Act 23-137, you are entitled to a pro-rata refund of unused GAP coverage. The cancellation fee is capped at $50.
What changed with Connecticut GAP law in 2024?
SB 1033 (Public Act 23-137) took effect January 1, 2024, establishing new requirements for GAP waivers including a $50 fee cap, disclosure requirements, and refund procedures.
How long does a Connecticut GAP refund take?
Creditors must process your GAP refund within 60 days of receiving your cancellation request under Connecticut law.
Where do I file a complaint about a GAP refund in Connecticut?
File complaints with the Connecticut Department of Banking or the Connecticut Attorney General Consumer Protection Division.
Connecticut 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
See how Connecticut's laws compare to other states:
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Average Connecticut recovery: $560 · Based on Connecticut Public Act 23-137 (SB 1033)