What is a CPI charge on my auto loan?

"I was looking at my auto loan statement, and I see something that says ""CPI Charge,"" which costs $2,500.

What is this charge?"

Answer
“Collateral protection insurance, also known as force-placed insurance, is something the lender can add to your loan if your current car insurance coverage lapses. So if you forgot to renew or didn’t pay, you might see this charge.
Unfortunately, there’s not much you can do about this. CPI is written into your contract. However, if you believe this charge is a mistake, and you do have auto insurance, contact your lender immediately to show proof of insurance and get this charge dropped.
In addition, you might be able to get this policy canceled if you provide proof of insurance. This won’t always work, and you might be out of luck, but it’s worth a shot.”
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Eric Schad
Answered on May 26, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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