Previously, some dealers falsely told their customers that theft protection cost only, say, $3/month, when in reality the cost was $35/month. The dealer was hiding the true of the monthly payment on the loan. This fraudulent practice is very common among dealers and is known as loan packing.
Under the new Car Buyers Bill of Rights which was adopted in California in July, dealers cannot misrepresent the cost of debt cancellation insurance (GAP protection), service contracts, surface protection, and theft protection products, called after-market items.
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