Why did I get a $3,000 "Charge Assessment for CPI" on my car loan?

"I was looking over the balance of my car loan, and I saw that it had a $3,000 debit with ""Charge Assessment for CPI"" next to it.

What does this charge mean?"

Answer
“CPI, or collateral protection insurance, is car insurance that’s forced onto your loan when you let your original policy lapse.
Maybe you didn’t make insurance payments or forgot to renew your policy. Regardless, you don’t have car insurance. So, to protect their collateral, the lender puts this insurance on your car and charges you for it.
In some cases, you can get this charge removed if you show proof of insurance. Other times, you won’t be able to, as the insurance has already been purchased.
Your next move is to call your lender to explain the situation and see what can be done.
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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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