Attorney General Settles with AmeriCredit Financial Services
Consumer Finance Company Agrees to Stop Collecting Gap Amounts

BALTIMORE, MD (July 30, 2007) - Attorney General Douglas F. Gansler today announced that his Consumer Protection Division has reached a settlement with Texas-based AmeriCredit Financial Services, Inc. regarding its practice of charging Maryland consumers amounts that were forgiven under the terms of their original loans. As result of the settlement, AmeriCredit has agreed to refund monies wrongfully collected.

AmeriCredit purchases consumer credit contracts from the original lenders, such as automobile dealers. Some of the purchased contracts contained “gap waivers” that protect consumers if they are involved in an accident and their insurance coverage does not cover the balance remaining on the loan. The gap waiver excuses the consumer from having to pay the difference, or “gap,” between their insurance coverage and the amount they still owe. The Division alleges that AmeriCredit attempted to collect from consumers amounts that were not covered by insurance despite the existence of gap waivers in their contracts.

AmeriCredit denied any wrongdoing but agreed to refund all of the money that the Division alleged was wrongfully collected from Maryland consumers. In addition, the company will contact the credit reporting bureaus and reverse any negative comments it may have reported. AmeriCredit has also agreed to no longer collect gap amounts from consumers unless it is specifically authorized to do so under any contract containing a gap waiver.

Consumers eligible for refunds under the settlement will be contacted by the Consumer Protection Division. In making today’s announcement, Attorney General Gansler thanked Assistant Attorney General Philip Ziperman for his work on the case.