State Law Guide
If you paid off your loan early, you may be owed a GAP refund.
Maine GAP Insurance Refund Guide
Under Maine Guaranteed Asset Protection Waivers law, Maine consumers who pay off auto loans early are entitled to pro-rata GAP and warranty refunds. Dealers who fail to comply face Cease-and-desist orders and penalties of up to $500 per violation ($10,000 in total) from the Superintendent of Consumer Credit Protection (Title 10 § 1500-H(6)).
Quick Answer
In Maine, you're entitled to a pro-rata refund of unused GAP insurance and warranty products when your loan is paid off early. You can sue in Small Claims Court for up to $10,000.
Paid off your auto loan early in Maine?
Check your rights under Maine law
Key Maine Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Free Look Period | At least 30 days | Cancel within the free look period without penalty, fees or costs for a full refund of the purchase price, as long as no benefits have been provided (10 M.R.S. § 1500-H(1)(E), (5)(A)) |
| Right to Cancel | Must be cancellable after the free look | Every GAP waiver must be cancellable after the free look period (10 M.R.S. § 1500-H(5)(A)) |
| Pro Rata Refund Required | After the free look | If you cancel, or the loan ends early, after the free look period, you are entitled to a pro rata refund of the unearned portion of the purchase price (10 M.R.S. § 1500-H(5)(B)) |
| 90-Day Request Window | After early payoff | If you are cancelling because the loan ended early, send a written request to the creditor, administrator or other named party within 90 days of the event that ended the loan (10 M.R.S. § 1500-H(5)(B)) |
| Refund Applied to Balance | Unless paid in full | The creditor may apply the refund to the amount owed unless you show the loan has been paid in full (10 M.R.S. § 1500-H(5)(D)) |
| Bank and Credit Union Exclusion | 10 M.R.S. § 1500-H(7)(A) | Debt cancellation contracts that banks or credit unions offer in compliance with federal banking or credit union rules are not covered by § 1500-H; for those, the contract's own terms govern |
| Not Insurance | 10 M.R.S. § 1500-H(7)(C) | GAP waivers are not insurance and are exempt from the insurance code; complaints go to the Bureau of Consumer Credit Protection, not the Bureau of Insurance |
| Consumer Credit Enforcement | 10 M.R.S. § 1500-H(6) | The Superintendent of Consumer Credit Protection can order compliance and impose penalties of up to $500 per violation, $10,000 in total for similar violations |
Free Look Period
At least 30 daysRight to Cancel
Must be cancellable after the free lookPro Rata Refund Required
After the free look90-Day Request Window
After early payoffRefund Applied to Balance
Unless paid in fullBank and Credit Union Exclusion
10 M.R.S. § 1500-H(7)(A)Not Insurance
10 M.R.S. § 1500-H(7)(C)Consumer Credit Enforcement
10 M.R.S. § 1500-H(6)What Maine Law Requires
Your Refund Rights
Under Maine Guaranteed Asset Protection Waivers law, Maine 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.
GAP coverage is often refundable after an early payoff, a refinance, or a total loss on which GAP paid no claim — but the contract, state law, and unused coverage determine the amount.
A formal demand letter citing your state's exact statutes is harder to ignore than a generic email.
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Frequently Asked Questions
Do I get a GAP refund if I pay off my car early in Maine?
Yes. If the loan ends early after the free look, 10 M.R.S. § 1500-H(5)(B) entitles you to a pro rata refund of the unearned portion of the waiver's purchase price. Send a written request to the creditor or administrator within 90 days of the payoff.
What is the free look period for GAP in Maine?
Maine law requires a minimum 30-day free look period during which you can cancel with no fees or penalties whatsoever ($0), as long as no benefits have been provided.
How do I request a GAP refund in Maine?
Submit a written cancellation request to your creditor or GAP administrator within 90 days of your loan payoff or termination event. Include your loan payoff documentation and reference the statutory refund right under Title 10 § 1500-H.
Where do I file a complaint about a GAP refund in Maine?
File with the Maine Bureau of Consumer Credit Protection, whose Superintendent enforces the GAP waiver law and can order compliance and impose penalties (10 M.R.S. § 1500-H(6)). GAP waivers are not insurance, so the Bureau of Insurance does not handle them; the Attorney General's Consumer Protection Division also takes complaints.
Maine 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.
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