Department of Defense Allows Military Families to Buy GAP Waiver Coverage

Late last month, following a joint petition from NADA and the American Financial Services Association, the U.S. Department of Defense elected to modify a proposed rule change, with the end effect of making active-duty service members eligible to purchase Guaranteed Asset Protection (GAP) Waiver coverage, which they otherwise would be unable to do under the rule proposed by the DoD in December 2017.

“This is a great victory for military service members and their families,” said NADA president and CEO Peter Welch, and AFSA president and CEO Bill Himpler in a joint statement. “It is critically important for members of the military to have the ability to purchase valuable credit-related products such as optional GAP Waiver protection when they finance the purchase of a new vehicle.”

WANADA supports the DoD’s February 2020 decision, and thanks NADA and AFSA for their hard work in getting this proposed rule amended, a decision that provides credit-access parity to veterans and civilians alike.

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