This class action lawsuit claims that Toyota has engaged in a practice of refusing to wave the full amount of the “gap” on vehicles, despite the terms of the GAP contracts.
Gap protection is generally described as a contract designed to cover the difference between what your insurance carrier will pay and what you actually owe on the car if you have and accident and the car is totaled. Toyota has stated that it is designed to help protect consumers from having to pay out of pocket expenses that come with the total loss of a vehicle.
One plaintiff in this lawsuit, Marian Mensie, is a resident of Pulaski County, Arkansas. On June 28, 2014, she purchased a new Toyota RAV4 that was financed through Toyota for a total amount of $41,900. She also paid $694 in addition for a GAP contract. On April 25, 2015, Mensie’s vehicle was involved in an accident. Her primary insurance carrier deemed the vehicle a total loss and paid Toyota $24,431.45, the value of the RAV4 at the time of the accident. At that time, Mensie still owed Toyota $38,100 for her vehicle. Toyota refunded Mensie $4,00 for the unused portion of a Mechanical Repair Agreement and a Prepaid Maintenance Agreement. After this, there was still a $10,000 gap between the $34,100 Mensie owed on her vehicle and the $24,431 covered by her primary insurance. Contrary to the terms of the GAP contract, Toyota did not waive liability for the $10,000 “gap.” Instead, they waived $7,997.48 and notified Mensie that she was liable to pay Toyota the remaining $2,328.42.
It is believed that Toyota’s interpretation and construction of Mensie’s GAP Contract is uniform and consistent with how they interpret and construe all other GAP Contracts. Consumers across the country are affected by this practice and suffer financially.
Based on the facts of the case, the plaintiff alleges the following violations:
- Breach of Contract
- Violation of the Arkansas Deceptive Trade Practices Act
Topic: Consumer
Most Recent Case Event
Toyota GAP Coverage Complaint
February 8, 2017
This complaint claims that Toyota failed to pay the "gap" between the value of the car and what the insurance paid after the vehicle was totaled in an accident, despite contracts that require them to pay the full amount.
toyota_gap_insuarance_complaint.pdfCase Event History
Toyota GAP Coverage Complaint
February 8, 2017
This complaint claims that Toyota failed to pay the "gap" between the value of the car and what the insurance paid after the vehicle was totaled in an accident, despite contracts that require them to pay the full amount.
toyota_gap_insuarance_complaint.pdf