Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:03/16/2023

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  GAP Insurance is purchased to cover any additional money owed on a loan if not covered by primary insurance. When the primary insurance covers the full balance of the loan, typical and most GAP insurance companies will pro-rate and refund for the time not used and not using the services. I know this because I work in the industry. I help process insurance claims and GAP insurance claims literally every single day through my career. However this GAP insurance company, Frost, makes it's money by ripping people off. You pay hundreds of dollars for a policy, and then when the vehicle is involved in an accident and your primary insurance pays the vehicle off in full, instead of allowing you to cancel the remaining contract and receive a prorated refund they basically say "thanks for the free money!" and run. If you purchased a 48-month contract with them, and you use it for only 12 months (or in this case, 11 months) - you should be entitled to your pro-rated amount back. They did not have to pay out anything for GAP claim and the terms of the duration of contract were not met, such as either USING the coverage, or the time of 48 months elapsing. As I said in my line of work, I have worked with numerous GAP insurance providers, I am talking probably 50-60, and never once did any of them give any remote kind of issue for a prorated refund as the result of either: total loss no gap needed, impounded/disposed of vehicle, refinance of loan, or sale/trade of vehicle. How this company believes that this is right is beyond me, and I will absolutely share my experience with every single dealership that I work with. In the course of my job, we literally work with thousands of vehicle dealerships since we are a finance company. I will absolutely make sure all the dealerships we work with will know to stop using Frost Financial as a GAP insurance company because they rip people off.

  Business Response

  Date: 03/20/2023

  At Frost, we take every complaint serious and look at situations like this as an opportunity to make sure we are providing the best products and service possible for our clients.  In the case of the complaint by Ms. ********* the GAP program that she purchased from her Credit Union has great benefits for their members in the event of a Total Loss but is non-refundable after the 60-day free look period.  Ms. ******** is correct that GAP programs purchased thru auto dealerships are almost always refundable if the loan is terminated early, but the cost to consumers is generally much higher than the cost charged by Lenders like the one she purchased thru her Credit Union.

  The good news is that we contacted Ms. ******** to discuss because she mentioned that the vehicle on this loan had been in an accident and deemed a Total Loss.  The GAP program that she purchased thru her Credit Union has a wonderful benefit that can help members even if the primary carrier settlement is more than enough to pay off the loan balance.  Ms. ******** is eligible to receive a $1000 Plus benefit towards her next auto loan with her Credit Union.  

  To conclude, Frost does not sell GAP to any consumer and only provides Administrative Services for our Lender clients.  The GAP program in question was designed to be affordable for members while providing great benefits in the event of a Total Loss situation.  

   

   

   

  Customer Answer

  Date: 03/20/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ** ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ******* ********