PNC Faces Suit Over Insurance Fees in Car Financing Agreements

PNC Bank faces a breach of contract lawsuit alleging the company knowingly kept unearned insurance fees from automobile financing agreements.

Vincent Ratulowski sued PNC at the start of 2022 and alleged the bank kept “Guaranteed Asset Protection” fees that should have been refunded when the balance for his car was paid off.

GAP insurance helps bridge the gap between what a car is worth when it is totaled or stolen and the amount left on the loan, since new cars begin depreciating almost immediately after they leave the lot.

Because of ambiguity in Ratulowski’s GAP agreements, the US District Court ...