CPI Collateral Protection Insurance Applied Retroactively by Bank- Is that legal?

[EB3614]

My Michigan bank purchased CPI for my auto during a time period that my auto insurance was not in effect and passed on the cost to me. Is it legal to purchase CPI for a retroactive time period? They also did not notify me of the purchase and charge until months after the time period the CPI covered. They DID communicate to me that they could and would purchase CPI if I did not provide proof that the car was covered in those prior months. However, I was not notified that the insurance had been purchased and that my loan was charged until months after the insurance lapse. It doesn't seem right that they can purchase insurance retroactively and charge me retroactively. It that legal?

 

[Zigner]

My Michigan bank purchased CPI for my auto during a time period that my auto insurance was not in effect and passed on the cost to me. Is it legal to purchase CPI for a retroactive time period? They also did not notify me of the purchase and charge until months after the time period the CPI covered. They DID communicate to me that they could and would purchase CPI if I did not provide proof that the car was covered in those prior months. However, I was not notified that the insurance had been purchased and that my loan was charged until months after the insurance lapse. It doesn't seem right that they can purchase insurance retroactively and charge me retroactively. It that legal?

Yes, it's absolutely legal. You were covered by (basically) their blanket of insurance coverages and have to pay for that.

ETA: You agreed to this when you got the car

 

[adjusterjack]

It doesn't seem right that they can purchase insurance retroactively and charge me retroactively. It that legal?

Yes, it's legal. Read your loan contract. It's all in there and your contract is your notice of what will happen if you default. Lapsing your insurance is default.