1. Where the retail contract provides that in the event of total loss of the vehicle caused by theft, seizure or damage to property, the buyer shall be liable for the amount of the difference referred to in Section 100(52) of the Insurance Act, the holder shall be liable, before performance of the contract, by reference to a separate document, of this fact and obligations: for which the buyer would be held responsible in case of theft, seizure or total loss of the vehicle. The message must be signed by the buyer. Abandoning the CAP is an option that you should definitely consider. While it may not have obvious benefits immediately after you leave the field, it can save you from financial hardship in the event of an unexpected event. In some circumstances, the Personal Property Act does not apply to banks. If a bank or other financial institution extends credit and does not sell the property to a retail buyer, the bank would not be a « retail seller » under the PPL. In this case, the bank would not be required to offer a buyer to fill in the gaps. Tim Meenan, managing director of the guaranteed Asset Protection Alliance, explains that « the idea of repaying a loan for a vehicle you can no longer drive is not appealing to any of us » and that without the CAP waiver, « it could be you, regardless of the total amount of your new car ». It may be beneficial to review a CAP waiver declaration if you are concerned about the total amount of your vehicle and are not close to payment.

1 Insurance Act § 107 (a) (52) (B) (i) defines the « deficiency » of a loan or other credit transaction in the purchase of personal property as the amount owed by the debtor in connection with the loan or other credit transaction at the time of a total loss of the personal property that is the subject of the loan or other credit agreement caused by theft or physical damage; the amount that the debtor would have owed if the creditor had not waived that obligation; and (ii) the sum of: (I) unpaid rent and other unpaid costs resulting from the Tenant`s failure to meet the Tenant`s obligations under the Lease Agreement that had been incurred prior to the date of loss; and (II) the actual present value of the personal property at the time of loss. . . .