GAP and service contract refunds by each contract's method and the state's rule, paid inside the deadline
Every payoff, repossession and total loss refunded right and on time.
See one case, screen by screen ↓Software that works out and pays the unearned part of add-on products — GAP waivers, vehicle service contracts, tire and wheel, key replacement, credit life — when an auto loan ends early by payoff, repossession or total loss. GAP and Service Contract Refunds opens a case when the event posts, calculates each product's refund by its contract's method and the state rule, and puts one refund in front of the refund specialist to approve.
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When an auto loan ends early — the borrower pays off or trades in, the car is repossessed and sold, or it is totalled — the GAP waiver, the vehicle service contract, tire and wheel, key replacement and credit life stop doing anything. The unearned part of each price belongs to the borrower, or to the balance still owed, and the lender answers for getting it there even when the dealer sold the product and an administrator holds most of the money.
Today the refund specialist works each case by hand: finds the products on the retail installment contract, pulls each product's own cancellation terms, works out the refund by the method the contract and the state require, asks each administrator for its share, chases the dealer for the markup it kept and writes the letter — while the clock runs. Administrators quote off their national form when a state addendum applies, and a product that was sold but never boarded to servicing is never refunded at all.
Estimated split for a typical payoff refund, in days, by hand and with the solution.
Six specialist agents find every product, calculate each refund and split who owes what; the refund specialist approves.
Marisa Delgado traded in her 2023 Honda CR-V at Northloop Auto Plaza and paid off her Harrowgate Auto Finance contract on Friday 2 October. Here is her refund, screen by screen, in the working solution.
Tessa opens to the receipts, not a dashboard: 214 open cases, 38 due in 5 days, each stub showing the amount, the event, the state, the method and the days left on the clock. Marisa Delgado's receipt is printed and waiting — $1,259.60, three issues flagged on it.
“Every payoff, repossession and total loss prints its own receipt, by the state's method and the contract's terms.”
While Tessa watches, Ahmad Rahimi's payoff comes off the servicing tape. The receipt prints line by line by the Texas rule — GAP waiver $233.87 plus service contract $690.38, $924.25 due. The method check beside it shows that by the Rule of 78 instead, Ahmad would be $730.43 short.
“Ahmad Rahimi's payoff · receipt printed by the Texas rule · $924.25”
$19,486.22 from Northloop Auto Plaza posted at 15:41 and paid the loan in full. The event watcher opened a refund case and started the clock: due Sunday 1 November under the 30-day policy. The queue ranks every open case by days left, with the products, the state and the stage.
The contract reader read the retail installment contract and three product forms. Itemization line 4 lists GAP $795, a service contract $2,895 and tire and wheel $649 — and the tire and wheel product from Ridgeway Road Hazard was never boarded in servicing. It is added to the refund, worth $139.34 to Marisa.
“Finished in 47 s · 6 agents · contract and 3 product forms.”
The Cedarline service contract refunds pro rata by the greater of time used or miles used. Time used is 70.8% (1,294 of 1,827 days); miles used is 55.2% (41,368 of 75,000, from the signed trade-in odometer statement). Time wins: $2,895 × 533 ÷ 1,827 = $844.57, less the $50 fee — $794.57.
The calculator never uses a method the contract or the rule table does not name.
Click any line on the receipt and the margin note shows where it came from. Cedarline's quote deducted the $75 fee from its national form; Marisa's contract carries Texas addendum TX-14, which caps the fee at $50. Cedarline owes $294.24, not $269.24 — and Marisa gets the right amount now.
“The cancellation fee shall not exceed $50.” — Texas addendum TX-14 §3
Marisa receives the whole $1,259.60. Harrowgate recovers $443.00 from the three administrators — Halberd $122.90, Cedarline $294.24, Ridgeway $25.86 — and $816.60 from Trinity Bluff Motors, which kept $2,599 of the $4,339 it charged. The chargeback is netted from the dealer's next funding.
Never holds the borrower's refund waiting on a dealer.
Each product with its method and fee, the total, and a letter that shows every calculation. Payment goes by direct deposit to checking ending 6620, the account her last 12 payments came from. Her file says she prefers Spanish for written notices; one request from Tessa adds a Spanish letter, with the English copy.
Tessa approves $1,259.60 for three products with her user name and password and the meaning “Calculated and checked — pay as shown”. Because Harrowgate pays before it recovers and the amount is above the $1,000 advance limit, it goes to Priya Natarajan to approve the advance.
“Your approval, the time, the amount and every calculation step are written to the audit trail and cannot be changed.”
Priya approves the advance and $1,259.60 goes out by direct deposit — 10 days after payoff, 20 inside the deadline, in Marisa's account Tuesday 13 October. The receipt reprints with the PAID stamp; the chargeback and Cedarline's dispute stay open on Harrowgate's side.
REFUND DUE $1,259.60 · TEXAS PRO RATA · CONTRACT §4 — PAID · 12 OCT 2026
The same payoff, seen by the five people who carry it — what their week looked like, and what it looks like now.
Six specialist agents find every product, calculate each refund and split who owes what; the refund specialist approves.
Watches servicing for payoffs, repossession sales and total-loss settlements, opens a refund case and starts the clock.
Reads the retail installment contract's itemization and every product form: price, term, administrator, refund method, fee and state addendum — and reports any product missing from servicing.
Applies each contract's method and the state rule, step by step, with the source of every input. If the contract names no method, it stops and asks compliance.
Sends cancellation requests with the event date and odometer to each administrator, reads the quotes and compares them with the calculation, drafting a dispute for any difference over the tolerance.
Works out each dealer's retained share, raises the chargeback and nets it from the dealer's next funding.
Drafts the borrower letter with each calculation, in the borrower's preferred language with an English copy, and the refund payment.
Approves; team lead approves advances above $1,000. The agents propose; a named person decides.
Ask about any refund, product, quote or state rule — or say what to change. Answers cite the contract, the quote or the rule.
Why is the service contract refund $25 more than Cedarline's quote?
Cedarline deducted a $75 cancellation fee — the fee on its national form. This contract carries Texas addendum TX-14, which caps the fee at $50. Time used is 70.8% and miles used 55.2%, so time sets the refund: $2,895 × 533 ÷ 1,827 = $844.57, less $50 = $794.57. Cedarline owes $294.24, not $269.24.
Who owes what on Marisa Delgado's refund?
Harrowgate pays Marisa $1,259.60 now and recovers it: $122.90 from Halberd, $294.24 from Cedarline, $25.86 from Ridgeway, and $816.60 from Trinity Bluff Motors. The dealer kept $2,599 of the $4,339 it charged, so most of the money comes back by chargeback, netted from its next funding.
Which refunds are due in the next 5 days?
38 cases are due by Saturday and 2 are past due. The ones that need you: Desmond Achebe, 3 days late, Cedarline silent 19 days; Yolanda Briggs, 2 days late, deficiency notice not sent; Hana Whitaker, 3 days left, refunds to report to Halberd.
Add a Spanish letter — her file says she prefers Spanish
Done. Marisa's borrower record lists Spanish as her preferred language for written notices, so the letter now goes in Spanish and English. The amounts and each calculation are the same — $1,259.60. Nothing is sent until you approve.
13 screens from the working solution, on its sample data. Pick one to see it large.
How refunds are timed, calculated, approved and paid. Changes are versioned and on the audit trail.
| Setting | Default | Choose from |
|---|---|---|
| Refund deadline from the payoff, repossession sale or total-loss settlement | 30 days | In steps of 5 days |
| Raise an administrator quote further from our calculation than | $1.00 | $0.01 · $1.00 · $5.00 |
| Odometer for miles-based methods | Trade-in or auction odometer statement | Trade-in or auction odometer statement · Last service record · Borrower's statement |
| Read the contract itemization on every case and refund products not in servicing | On | On · Off |
| Payoff refund goes | ACH to the account the last payment came from, else check | ACH, else check · Check to the address on file |
| Letter language | Preferred language + English | Preferred language + English · English only |
| Team lead approves an advance before recovery above | $1,000 | $500 · $1,000 · $2,500 |
| Compliance sampling | 5% of refunds | 5% of refunds · 10% of refunds · Every override |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample data · “estimated” = our estimate · “typical” = published figures (CFPB, Supervisory Highlights: Auto Finance Special Edition, Issue 35, Oct 2024 — refunds found paid as late as 664 days, as summarised by Sheppard Mullin; Cox Automotive / Dealertrack state survey, 2021 — 41 states require a refund when a service contract or GAP waiver is cancelled). State rules shown are the working solution's sample table; confirm with counsel. People, companies and dealers named on this page are fictional — characters and sample data in the working solution.
Software that works out and pays the unearned part of add-on products — GAP waivers, vehicle service contracts, tire and wheel, key replacement, credit life — when an auto loan ends early by payoff, repossession or total loss. GAP and Service Contract Refunds opens a case when the event posts, calculates each product's refund by its contract's method and the state rule, and puts one refund in front of the refund specialist to approve.
The refund calculator uses the method each contract names — pro rata by days, pro rata by the greater of time or miles, or the Rule of 78 where the contract and the rule table allow it — then the fee in the contract or its state addendum. Every step is shown with its source, and the method check shows what the other method would have given.
Yes. The contract reader reads the itemization on every retail installment contract and compares it with the products in servicing. In the working solution it found a tire and wheel product on line 4C that servicing never had, and added $139.34 to the borrower's refund.
The administrator canceller compares every quote with the calculation. A difference above the quote tolerance is raised with the clause that explains it and a drafted dispute — and the borrower's refund is never held for the quote.
No. The lender pays the borrower the whole refund first, then recovers each administrator's share and the dealer's retained share by chargeback, netted from the dealer's next funding. Advances above $1,000 need the team lead's approval.
On a repossession, refunds reduce the deficiency balance first and any remainder goes to the borrower. On a total loss, cancellable-product refunds are reported to the GAP administrator before the GAP claim settles. Both are settings.
Yes. The agents calculate and draft; they never send money or a letter. The refund specialist approves every refund, the team lead approves advances above the limit, and compliance owns the state rule table and samples approved refunds each week.
The Agentic Solution Engine builds and deploys it from your requirements — your refund policy, your state rule table, your product forms and a sample of past payoffs — and it goes live once every quality gate has passed. Your compliance team confirms the rule table before go-live.
We'll run GAP and Service Contract Refunds on a sample of your own payoffs, repossessions and total losses.