Thread: Help Needed on GAP Insurance and Car finance agreement

This website is great!

In 2007, I brought my new car, after 6 months I looked at what the finance company was charging which made no sense, as it was about £3000 above what I had initially agreed.

When I wrote to the finance company I was told that I had taken out gap insurance and tyre insurance for the car, but I had no recollection of this and the fact it was added to my finance agreement made me feel a bit uneasy.

I wrote back to them asking why they had added it, and asked them to cancel it with immediate effect and then to refinance me on a pro rata basis.

I got a nasty letter back saying that they had now cancelled the policy but that I would still be charged for it and wouldnt get a refund....

What should I do?

I dont even remember asking for it..

I also phoned the finance company as I am having difficulty paying for the car now (as I lost my job recently) and they basically said if I never paid that they would reposess the car and sell it at auction then come after me for the shortfall....I didnt really understand much of what they said as I am a bit of a layman, but the balance outstanding was massive and when I asked why he said when I brought the car they put the gap insurance and the tyre insurance on top of the cost of the car, then they added interest for 3 years to the balance, so what I have been paying has just about paid the interest element off.

I said thats not fair, you cant charge me interest in advance, he said we can....then i said if mortgage companies did that there would be mayhem...he laughed at me and said we have a right to make money too, I have worked out they have made more then 25% on me just on the finance element, forget the gap insurance policy that they have cancelled and still charged me for and the tyre insurance policy.

Can someone advise me on these issues?

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hi exchange and welcome

micky mouse car finance co is my area

to begin with, who is the finance company

and how old is the agreement

Hi

Car finance company is BMW, and the agreement is from July 07

Thanks

the way you explained your treatment from the finance company, i was expecting them to be the likes of welcome, ucan etc

this is bmw finance, as to the car bmw
was it a bmw that you purchessed

they seem to be employing very low tactics,
we will get this sorted so is it bmw finance or a company using that name

never had a compaint on the forum from them before

also

do you still have your agreement

if not you can request it

Hi

Yes it was a BMW car with BMW finance, the insurer who wrote me the letter saying the gap insurance policy was cancelled but that they could not give me a refund was St Andrews.

Below is the letter I wrote them in January 2007

28/01/2007

Dear Sir/Madam

Having spoken to Jinesh today, this letter serves to confirm that I want a refund on the above gap insurance policy.

The service I have received from you quite frankly is pathetic, I have received no paperwork for it despite several requests, and just want a refund now.

I have spoken with the financial services Ombudsman about the way I have been passed on from St Andrews to BMW and then back from BMW to St Andrews. They have assured me that it is up to St Andrews to refund my gap insurance policy.

I would be grateful if you could arrange for this to be done within the next seven days, otherwise I will be forced to get the financial services ombudsman involved as well as any professional services that may be required.

After I sent this letter I got a letter from them saying the policy was cancelled but no refund would be given if full or on a pro rata basis.

I got so busy with work after this I left it completely, but now being unemployed I have the time to pursue this.

Last week I asked BMW for all the documentation relating to this finance agreement and they never got back to me despite telling me it was in the post.

looks like you are being psat from piller to post
send this to bmw finance by recorded delievery
use a one pound postel order and print, never sign your name.

they have 12 plus 2 days to comply

send st andrew a letter also
request from them the policy document
any commission payments they received
how much bmw finance passed onto them for the cover
recorded again

at the bottom of this letter state

if i receive no reply with in 14 days , i will be making a second request via a data Subject access request for compliance

Ask your creditor for a copy of your credit agreement under the Consumer Credit Act 1974

1 High Street,
Newtown,
Kent
R21 4RH

June 28, 2006

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection From Unfair Trading Regulations 2008 (CPUTR).

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

We look forward to hearing from you.

Yours faithfully

Thanks man, I'll do that today!

ive not seen this tyre insurance before also

seems bmw are going down this road

so much for bmw reputation

i will treat this thread just like any other car finance issue

when you get your docs back, can you post them on your thread
google photo bucket

that will give you a chance to get used to it
deleate all personel info, name, address, account number but leave in facts and figures

see no reason why these premiums can not be refunded
but need to see agreement to confirm

Ok I had a response back from BMW.

They sent me all documentation relating to the car finance agreement.

In the agreement it clearly shows an area where I have completely crossed out for gap insurance and any other insurances.

However what happened is that the dealer just reduced this amount off the part exchange of a car I was exchanging with him and gave me this insurance, but in essence, that money from the part exchange of my other car should have gone towards the deposit of this new car. I know its all quite complicated but something they have done here doesnt seem right. I think the dealer was given large commission for this insurance and thought he wouldnt get caught out if he added it.

The insurance as you know they say is non refundable, however they have cancelled it as of 2008 January as I told them I didnt want it, i have told them its ridiculous of them to cancel something even though I paid for it, so either cancel and refund or just keep it in action....still awaiting their response.

What should I do?

I have written to all insurers, the financial Ombudsman and the dealer involved.

Hi

Sorry to hijack this thread but I was mis-sold a GAP policy (it turned out the vehicle is not shown in Glass's Guide and therefore not eligible for cover)

Now I'm stuck with a vehicle that could cost me dearly if I'm unlucky enough to be involved in an accident and it gets totalled.

I feel that as the policy was mis-sold with the vehicle and lumped in with the Finance Agreement, and as I would have definitely had second thoughts if I had known at the time I signed the Finance Agreement that the vehicle was going to be effectively insurable in terms of GAP cover, I should be within my rights to tell them to take the thing back.

Any thoughts?

H

hi

i also have protection / gap insurance included on a car i bought in 2006 from bmw financial services

it was £600 from JCT600, andffd is included on my invoice.

I didnt ask for this as I am selfe employed anyway and never take any insurances out for this type of thing.

I am sending BMW a letter today to ask for it to be refunded.

cbr

Hello ppl, i have today found out my dads gap insurance was cancelled in apr 07.

We purchased the car from bmw with bmw finance in nov06, we took it out on finance, we then had an accident recently and have been told that it is a total loss.

I then contacted st andrews, the gap insurance dept, they said they tried to collect payment from my account but it bounced, i paid the moey into my account the following day which was too late for the debit to take place, which i understand so they must have tried to take 2 payments the following month which was may 21st 07.

By which point the bank had decided to cancel my overdraft and cancel my direct debit, they failed to inform me as i had moved house and advised at a branch of the new address but failed to register it on there system, hence they sent the letters else where (if they ever did)

As the GAP policy was with st andrews, they should have wrote to my dad at his home address with his details advising him he had missed a payment, if he had recieved that letter he would have paid it directly and beat me up for missing the payment. But none of that ever happened. They maintain they sent out 2 letters for payment and then cancelled the policy over 2 years ago.

Sorry for going on so long, but surely the policy was set up for 3 years of cover for a total price of £375. I was paying £37.50 a month, 4 or 5 payments went through successfully. I had approx 5 payments left to make. There was no way me or my dad would have not paid when requested.

What do i do? i feel stuck and feel bad for letting my dad down in a big way.

himisty

i need you to tell me if the payment for gap was front loaded

that is paid up front in total by the finance company

do you still have the gap policy document with the t&c

and welcome to CAG

St Andrews are real crooks, they cancelled a fully paid policy I had just because I said I hadnt asked for it....FSA has been investigating since March but no one has got back to me yet...

sorry about the late reply guys, i was paying monthly. Cant believe they can just wash there hands of the policy. Do you think i'd have any luck with the Financial Ombudsman Service?

The policy was not fully paid for but they made no attempt to contact there policy holder which was my dad.

i know they would have paid it because they are very particular about there credit ratings.

ive looked through all my paperwork and have never recieved a policy document. What if theyve been sending everything to the wrong address?

Bmw seem to have the correct address as there always sending some offer or the other.