gap claim denied, dealer messed up the contract

[saul961]

Jurisdiction

Texas

hi, i recently got a insurance claim denied and it does not seem justified at all. my vehicle was in a total loss claim and the insurance paid a portion of the vehicle and there was a remaining balance of about $7500 that gap insurance was supposed to cover but it did not as my gap claim was denied. i kept all my contract agreements and the reason they denied it was because they said i failed to make my first payment within the first 90 days of the purchase. well here is the thing, on that same contract of sale the dealer set my first payment to be due on the 90th day. i made that payment as i had already set up autopay with the lien holder. i never asked for a payment extention as the dealer said they just set it up that way as part of their deal but it is in the same contract where the gap insurance was bought. it makes no sense as to why they would sell me something just so that it can by voided immediately. i purchased my vehicle on 5/09/15, the bill of sale specifically said it was going to be due for 71 payments starting on 08/07/15. i never asked for my due date to be put out and my first payment was made on 08/07/15 as they asked but they are saying it was out of the first 90 day period which makes absolutely no sense. i am not looking for free representation, i will pay for the services but i do need legal help and advice. i have gone to several other attorneys but no one wants to take my case and that is just insane. obviously either the gap or the dealer made a huge mistake in the drafting of this cotract but i just dont understand why i have to be the one held liable. i hope someone can help. this is seriously causing huge amounts of stress and anxiety.

 

[adjusterjack]

either the gap or the dealer made a huge mistake in the drafting of this cotract but i just dont understand why i have to be the one held liable.

You are liable because YOU made the mistake of not reading and understanding your GAP contract.

Had you read it and understood it you would have known that you had to make a payment within 90 days to be covered despite what the scheduled payment was. Nobody had any obligation to "tell" you that, it was right there in print for you to read.

 

[draken_961]

You are liable because YOU made the mistake of not reading and understanding your GAP contract.

Had you read it and understood it you would have known that you had to make a payment within 90 days to be covered despite what the scheduled payment was. Nobody had any obligation to "tell" you that, it was right there in print for you to read.

just on that note can i at least try to pursuit it? i ask because all the payments were set up for auto pay and gap claimed that the payment was made on the 91st day which voided the contract but according to the dealer it was made on the 90th day from the date of sale 05/09/2015 even though they set up the payments to start on 08/07/15. so they are counting their days differently. to begin with i didnt ask for the extension of the payment. they simply set up my contract to begin on 08/07/2015 thru 07/07/2021. all the payments were made on time as they were set up on auto pay.

 

[adjusterjack]

all the payments were made on time as they were set up on auto pay.

That's the trouble with auto pay. You relinquish control of your money. That the payment was made one day from one bank doesn't mean that it's posted the same day to the other bank. Riding the due date is a horrible risk to take.

they are counting their days differently.

Apparently they are. The GAP company appears to be counting 5/9 as the first day which would make 8/7 the 91st day and the dealer counted 5/10 as the first day making 8/7 the 90th day.

Doesn't matter what the dealer did, it's the GAP contract that will have the final say.

What, exactly, does the GAP contract say about the due date of the first payment? Don't paraphrase, quote the entire provision word for word and let's see what it looks like.

 

[Disabled Vet]

Did the GAP company accept this late payment? Did you continue paying the GAP policy monthly, if so how long did you continue making monthly payment? Did they return the monthly payments for GAP?

 

[army judge]

hi, i recently got a insurance claim denied and it does not seem justified at all. my vehicle was in a total loss claim and the insurance paid a portion of the vehicle and there was a remaining balance of about $7500 that gap insurance was supposed to cover but it did not as my gap claim was denied. i kept all my contract agreements and the reason they denied it was because they said i failed to make my first payment within the first 90 days of the purchase. well here is the thing, on that same contract of sale the dealer set my first payment to be due on the 90th day. i made that payment as i had already set up autopay with the lien holder. i never asked for a payment extention as the dealer said they just set it up that way as part of their deal but it is in the same contract where the gap insurance was bought. it makes no sense as to why they would sell me something just so that it can by voided immediately. i purchased my vehicle on 5/09/15, the bill of sale specifically said it was going to be due for 71 payments starting on 08/07/15. i never asked for my due date to be put out and my first payment was made on 08/07/15 as they asked but they are saying it was out of the first 90 day period which makes absolutely no sense. i am not looking for free representation, i will pay for the services but i do need legal help and advice. i have gone to several other attorneys but no one wants to take my case and that is just insane. obviously either the gap or the dealer made a huge mistake in the drafting of this cotract but i just dont understand why i have to be the one held liable. i hope someone can help. this is seriously causing huge amounts of stress and anxiety.

(Monday) May 9 2016 to (Sunday) August 7 2016 is EXACTLY 90 days!!!

However, Sunday is NOT a business day.

Your 90th day would fall on Monday, August 8th, 2016 by CLOSE OF BUSINESS, unless the contract says otherwise. The governing authority here would be Texas insurance statutes, or the UCC.
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You can verify that here:
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Online calculator: How many days are there between two dates?
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I suggest you start by contacting the Texas Insurance Commissioner, here:
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Companies authorized to sell "gap insurance in Texas"
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Companies Authorized to Offer GAP Insurance Coverage
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Texas Department of Insurance Complaints
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Auto Insurance
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[draken_961]

That's the trouble with auto pay. You relinquish control of your money. That the payment was made one day from one bank doesn't mean that it's posted the same day to the other bank. Riding the due date is a horrible risk to take.



Apparently they are. The GAP company appears to be counting 5/9 as the first day which would make 8/7 the 91st day and the dealer counted 5/10 as the first day making 8/7 the 90th day.

Doesn't matter what the dealer did, it's the GAP contract that will have the final say.

What, exactly, does the GAP contract say about the due date of the first payment? Don't paraphrase, quote the entire provision word for word and let's see what it looks like.

the exclusion it was denied under says "where the first scheduled payment in snot made within 90 days of the retail installment contract date"

 

[draken_961]

Did the GAP company accept this late payment? Did you continue paying the GAP policy monthly, if so how long did you continue making monthly payment? Did they return the monthly payments for GAP?

the gap policy was financed under the lien holder. so they got payed at that time i assume, it was added to my monthy payments total which i have payed, like i said it was set up on auto pay so all the payments have been made on time and according to how the lien holder and the dealership set them up.

 

[draken_961]

(Monday) May 9 2016 to (Sunday) August 7 2016 is EXACTLY 90 days!!!

However, Sunday is NOT a business day.

Your 90th day would fall on Monday, August 8th, 2016 by CLOSE OF BUSINESS, unless the contract says otherwise. The governing authority here would be Texas insurance statutes, or the UCC.
...
...
You can verify that here:
.
.
.
Online calculator: How many days are there between two dates?
.
.
.
...
I suggest you start by contacting the Texas Insurance Commissioner, here:
.
.
.
Companies authorized to sell "gap insurance in Texas"
...
...
...
Companies Authorized to Offer GAP Insurance Coverage
....
....
...
Texas Department of Insurance Complaints
.....
.....
.....
Auto Insurance
.....
.....
.....

thank you. however they just told me that they verified and 08/07/15 falls as the 91st day. do you think i can keep fighting them on this?

 

[army judge]

thank you. however they just told me that they verified and 08/07/15 falls as the 91st day. do you think i can keep fighting them on this?

Did you USE the calculator I linked to in my post above?

Here is a date calculator and you can DO the math YOURSELF.
You'll see the end date you were given falls on a Sunday.
Hence, the next business day is MONDAY.

Here you go, PLEASE, do the test, prove it to yourself:
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Time Duration Calculator: Time between two dates/times
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From: Friday, May 6, 2016
To: Sunday, August 7, 2016

Yes, it IS 93 days.
I suppose the end date was meant to be FRIDAY, August 4th, but it wasn't, if what you've posted is correct.

Your argument is someone made a mistake.
It wasn't YOUR mistake however.
REREAD your contracts, notes, documents, verify things; then discuss with TDI = TX Dept of Insurance, as supplied to you in LINKS hereinabove....

 

[army judge]

the gap policy was financed under the lien holder. so they got payed at that time i assume, it was added to my monthy payments total which i have payed, like i said it was set up on auto pay so all the payments have been made on time and according to how the lien holder and the dealership set them up.

There you go, you paid someone in the food chain.
That someone may have made a mistake, or perhaps just pocketed the money and SCAMMED you.
Again, this makes your options look brighter.
It might be time to file a com[plaint with TDI, or speak to a TX licensed lawyer.

You appear to have SOMETHING on your side, mate.

 

[draken_961]

Did you USE the calculator I linked to in my post above?

Here is a date calculator and you can DO the math YOURSELF.
You'll see the end date you were given falls on a Sunday.
Hence, the next business day is MONDAY.

Here you go, PLEASE, do the test, prove it to yourself:
..
..
Time Duration Calculator: Time between two dates/times
...
From: Friday, May 6, 2016
To: Sunday, August 7, 2016

Yes, it IS 93 days.
I suppose the end date was meant to be FRIDAY, August 4th, but it wasn't, if what you've posted is correct.

Your argument is someone made a mistake.
It wasn't YOUR mistake however.
REREAD your contracts, notes, documents, verify things; then discuss with TDI = TX Dept of Insurance, as supplied to you in LINKS hereinabove....

sorry the dates i posted were 05/9/15 to 08/07/15, 05/09 falls on a saturday and 08/07/15 on friday. i appreciate your help. i am trying to find the information i need on the websites you provided. from what i read so far i will have to file a complaint and wait for that to get sorted out. at this point should i get an attourney? i really appreciate all the info

 

[army judge]

sorry the dates i posted were 05/9/15 to 08/07/15, 05/09 falls on a saturday and 08/07/15 on friday. i appreciate your help. i am trying to find the information i need on the websites you provided. from what i read so far i will have to file a complaint and wait for that to get sorted out. at this point should i get an attourney? i really appreciate all the info

You can talk to a couple attorneys for FREE.

See what you're told, and evaluate what options you discover.

If the end date was a Friday, that closes that escape route. LOL

 

[draken_961]

You can talk to a couple attorneys for FREE.

See what you're told, and evaluate what options you discover.

If the end date was a Friday, that closes that escape route. LOL

sorry, one last question that i have been struggling to find information on. the company does not appear on the tdi website and according to some posts ive seen they mention on contract law you do not include the date of purchase on a contract when determining date periods. like the calculator above posted 05/09/15 thru 08/07/15 is 90 days because you do not count 05/09/15. the first day would be considered 05/10/15. on that note i am looking for any information if possible on texas law that actually states that so i can use. like i just mentioned all the information i found is based on other posts.

 

[army judge]

sorry, one last question that i have been struggling to find information on. the company does not appear on the tdi website and according to some posts ive seen they mention on contract law you do not include the date of purchase on a contract when determining date periods. like the calculator above posted 05/09/15 thru 08/07/15 is 90 days because you do not count 05/09/15. the first day would be considered 05/10/15. on that note i am looking for any information if possible on texas law that actually states that so i can use. like i just mentioned all the information i found is based on other posts.

If the company isn't on the site, I'd contact TDI and inquire further.

Depending on what you learn, that determines what you can do next.

TDI can guide you about effective dates, but you need the policy and other documentation to support a potential complaint.