PNC Bank Was Sued Due To Illegal GAP Fees
PNC Bank was charged with a class action lawsuit because the company illegally earned millions from GAP fees.
Judith Jones, the lead plaintiff, filed the class action lawsuit against PNC Bank in April 2021 in an Illinois federal court. He argued that the company knowingly and illegally profited by keeping their customer’s GAP fees.
The GAP class action lawsuit alleges that the bank has kept their customer’s unearned GAP fees over the years, which has allowed them to collect millions of dollars.
The lawsuit aims to represent a nationwide class of individuals who added a GAP Waiver but did not receive a refund for their unearned GAP fees despite paying off their contracts early.
Car owners pay Guaranteed Automobile Protection Waiver (GAP fees) after purchasing a new vehicle.
GAP fees are paid so that car owners’ debts will be waived off if their insured car suffers total loss or total damage and if their vehicle’s actual value is less than their debt balance.
During this instance, the car owner is no longer responsible for paying for the gap or the difference between the car’s value after total loss and the debt balance.
The GAP fees are additional fees paid monthly by the insured car owner during the agreement’s lifetime. If a car owner pays off their remaining balance before the end of the contract, they will have “unearned GAP fees.”
The PNC GAP class action lawsuit insists that the insurer should refund this amount to the owners.
The lead plaintiff argued that she added a GAP waiver on her contract with the bank when she purchased a new car. The GAP waiver was to be paid through the lifetime of her 72-month agreement, which costs a total of $695.
The auto dealer, where she bought her car, allegedly sold her contract to PNC Bank. During this time, the bank started collecting all her payments.
The lead plaintiff claimed that she paid off her contract early, within 64 months instead of 72 months.
The class action lawsuit declared that the bank had acknowledged the plaintiff’s early payment. However, the bank did not refund the plaintiff her unearned GAP fees, which amounted to $91.32 (excluding interest).
It contends that the bank should return the unearned GAP fees to their customers since the amount was not earned and will not be earned due to the contract ending early.
The lead plaintiff attested that PNC Bank fraudulently kept the unearned GAP fees that should be refunded to their customers. She added that the bank only refunds the unearned GAP fees when the customer explicitly requested them.
The class action lawsuit argues that it is the company’s responsibility to return the unearned GAP, regardless if the customer requested it or not. It adds that the company’s action to keep the fee breaches their contract intentionally.
Editor’s Note on PNC GAP Class Action Lawsuit 2021:
This article is published to inform you of the latest class action lawsuit filed against PNC Bank due to allegedly keeping their customer’s GAP fees.
Case Name & No.: Jones v. PNC Bank, 1:21-cv-02000, US District Court for Illinois
Products/Services: Unearned GAP Fees
Allegations: The company allegedly kept their customer’s unearned GAP fees
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