I am all for people claiming back what they have been miss sold. It is wrong and as such they should have their money back.

But for you to have bought any form of gap insurance from a dealership they would have to ask you to sign at least two other bits of paper.

One for the FSA in the form of some sort of needs and demands and the other the order form . Gap is not vat-able and so must be shown in a different way.

In most cases it is even shown in a different section on your finance documents.

As much I think understand your position do you think this could be a case of you simply forgetting that you had them instead of being miss sold them?

Hi it is a shame that you are having such a nightmare. VT is there to protect you but the finance companies do not want to make it easy. That said i have never heard of anyone making it this difficult.

Totally agree with the advice given. Avoid the court if possible as it will just add to your costs. Keep a copy of the letter that you write them requesting VT. After all you where simply exercising a write within your agreement. But if it all gets nasty ( which it might ) this will be important as it shows that you requested VT.

Good luck.

Totally agree.

The Gap insurance company just like your own insurance company wants to make sure that each side is paying their share.

In either case that is for the insurance companies to mess around with as long as you are not out of pocket.

Hi its normal for the needs and demands not to have prices on them they are simply saying that you could benefit from the products and wanted to talk about them.

The prices should have been split out on your order form as insurance is not a subject to vat. I would talk to black horse if you feel you have been miss sold. After all no-one but you really knows that.

Sorry I don't think that it is as cut and dry as that.

The claims process is there to protect people who where miss sold products.

As I understand it when you buy gap insurance on a Black horse document you are asked to sign again to say that you understand the policy and pricing?

This second signature is in addition to the main loan signature.

Even if you buy the policy and sign electronically via their internet systems you are asked to sign again independent of the loan.

I am not a claims expert but I would have thought that two separate signatures saying that you understand the policies and benefits would be difficult to dispute.

Wow not nice situation to be in.

The finance company seam to be being unreasonable to the tenth degree. The documentation however in most cases will have been produced by the dealership that you bought the car from as it is them who will have registered the policy.

Under good practise guide lines the dealership should be able to provide you with a copy of some sort of document signed by you saying that you either want or don't want gap insurance. Even if you have bought the gap insurance directly from the finance house themselves in most cases you will have had to have signed an additional section again to indicate that you want gap insurance.

When it comes to fine the FSA can be very heavy handed ( thank god ) in fact RBS has just been fined millions for non compliance. It sounds as though you have all the correct relevant bodies looking at your case so not give up and leave it in there hands as if there has been and wrong doing they will find it

Hi -wasn't sure where to post, apologies if this is the incorrect forum...

 

I've just bought a new car on finance with GAP insurance included (haven't taken delivery of car yet) from a main Peugeot dealer. The GAP adds about £8 per month to my payments, and is shown as a separate breakdown on my finance agreement.

The dealership has said that they are using the 'profit' they receive from me taking this GAP insurance policy to further discount the cost of the vehicle, and that if I decide to cancel I will need to sign a new agreement showing the price of the car without the extra discount they have given it, basically meaning that my monthly payments will only go down by about £3 and not the £8 the insurance is costing me.

 

Is this legitimate? If feels like they are just trying to maintain their profit margin. If i take delivery of the new car and then cancel the GAP insurance within the cooling off period, the finance company have said this would be fine and they would remove it from my agreement. This will obviously leave the dealer out of pocket (as I assume the finance company will claw-back the money they paid the dealer for me taking the policy).

 

Will the dealer be able to pursue me for payment for the 'profit' they had applied to the car as extra discount? This isn't formally specified anywhere on the order forms I signed so I would hope not, but I don;t really want an angry dealer on the phone chasing the money they have 'lost'.

I work for an insurance broker after far too many years running main dealerships.

2 things worry me.

1st No one has the right to force gap insurance on you. It is your decision.

2nd I do not believe for one second that they are discounting the car further instead I think that they are just trying to make you take their gap insurance.

If in doubt why not talk to you finance company they should of told you who it is by now. If you still want gap insurance just Google gap insurance suppliers get a few quotes and take it from there.

No they will not be able to look to you for additional profit. If they have listed it on your invoice and then shown an extra discount that is there concern. As the gap insurance is an insurance item you will have a minimum 14 days cooling off in which time you can cancel and ask for a full refund of the premium.

& Sorry to say but gap insurance is still offered and sold at many dealerships. They have to be regulated and qualified but it is standard practise.

PPI is usually sold by the finance house themselves.

Wow good for you! and well done for taking forward too many people just let it lie. Just a shame you had the stress of taking it that far. & No if in doubt the FSA will always air on the side of the customer after all if the dealership had done everything correctly then your freind would have know exactly what they where getting and for how much.

Well done

Hi All (think this is the first time I've ever set foot in this forum)

 

This post is on behalf of a friend, who bought a car last year (before I met her). She's not very good with money etc, and ended up being sold GAP insurance along with her car. The dealership 'helpfully' arranged a loan with Barlcays Finance for her too, and she's paying quite a lot in interest.

 

 

With the GAP insurance (provided by AA Warranty), she had agreed to 5 years of cover, and has effectively paid up front, since this had been added to her loan.

 

We'd like to cancel the GAP (for a start, if she really wanted it, she could get it cheaper by buying directly from the AA). Given that the dealership will almost certainly have made commission on the selling of it, there may be grounds to claim it has been missold; but at the moment I'm simply asking for the insurance to be cancelled, and the remaining 4 years to be refunded.

 

Naturally the dealership say we can't do this, and it's up to the AA anyway. The AA are trying to fob me off, saying that if I believe the policy was missold, I should speak to the dealership.

 

The AA have refused to either admit or deny the existance of any secret commission, and I've pointed out to them that - since there are grounds for considerting legal action - I would be entitled to use CPR 31.16 to get this information. I've also made it clear than I'll escalate the matter to the FOS if necessary.

 

They're still refusing to budge. Any thoughts please? Who should I be going after? The AA or the dealership?

Hi I have only just seen your question so i guess you have sorted it out by now.

I work for an insurance company and there are clear rules and regulations that the dealership must have followed. That said you friend will of had to sign to say that she understood all the rules and been given all the relevant documentation.

In this case it is not the AA's fault.Sorry It is the dealership that she bought the policy from. You are totally correct in what you say the AA or their underwriters acting in good faith would supply the dealership with the policy for a set price. The price that the dealership charges will vary I understand that the average is around £395. The difference is the dealerships profit ( less insurance premium tax) .

Ok so legally after 14 days your friend has no redemption on the policy but and it is a big but I would contact the dealership and make the prove that all the paper work is in complete order. Chances are it will not be and in it is not then you will be in a very strong position. They will not want the FSA involved so they should just settle.

Good Luck

Sorry its all a bit late.

Hi just spoken to a customer who was having the same problem.

The car finance is in the girlfriends name the Log book in his name. Won't say who who a very popular German car maker is saying the same thing.

Sad thing is he bought it from the dealership too.

How did you get on have you heard back from you gap insurance company yet?

Thanks for the reply

 

I have sent in my claim form to Cardif Pinnacle and am now waiting to see what they come back with. At the time of purchase i was not given the option of adding further names to the policy despite the dealer being aware of the situation but I was very happy with all other aspects of the sales process. To be honest I am amazed that insurance companies are able to sell GAP insurance and state that the policy holder must be the registered keeper of the vehicle without asking to see the registration document for said vehicle.

Hi let me know how you get on. The insurance company would not want their polices to be sold like this and the dealership should know better. The dealership could have loads and loads of problems with this as if you make it difficult for them it really is an open and shut case of a miss sell.

Good luck

Hi all

 

In February this year my parents decided to purchase a used car from Madeley Heath Motors in Stoke-on-Trent as the car we then owned was costing a fortune in repairs. The car in question was a second car that was insured for everyone in the household to drive; so for example i used the car for social use whilst either one of my parents used it for commuting. The new car that was purchased was to be used in the same fashion. However when purchasing the car I was given the opportunity by my parents to pay for the car instead of paying my £40 a week board in the hope that this would allow me to start building a credit history. At the time of purchase I was offered RTI GAP insurance which I was told would cover any driver named on the insurance policy against a total loss; so i purchased it.

 

The problem I have is that the vehicle was recently subject to a total loss and Admiral insurance company have made a settlement offer of £9500. The amount I owe on the finance is around £10000 and original invoice price of the car was around £11500. Upon looking at my GAP insurance policy so that i can make a claim I have noticed that a claim can only be made if the GAP insurance policy holder is also the registered keeper of the vehicle; which I am not. My mother is the registered owner of both cars in our household so that they can be insured on her Admiral multicar policy.

 

At the time of purchase i was not made aware of this requirement and I am now surely not going to covered for the shortfall between the amount offered to me for the car and the amount I still owe to the finance company.

 

Any advise as to how I should approach this matter would be greatly appreciated.

Thanks

Hi I work in insurance and the company I work for supplies gap insurance.

You are right in what you say you must be the registered owner and keeper of the car. In most cases this is fine but when this situation husband and wife, son and daughter etc arises we always but both names on the policy. That way there is a clear financial link.

You could contact the insurance company and the FSA as this should have been pointed out to you at the time you bought the policy.

If the dealership did not point this out this is a clear case of miss sell in that you have been sold a poliy that you could never benefit from.

But first I would contact the dealership as the very last thing that they or in fact any company want is to be investigated by the FSA. It costs a lot of money and takes a lot of time so they will want to help.

Let me know how you get on.

I think you need to probe the information a bit more.

 

The glasses guide value of £16k is based on what ? Check to see what assumptions this valuation is based on. If £16k is correct, why have you accepted Insurers settlement of £13k. Insurance policies cover the market value of the car and they would have looked at glasses guide. So why do they think the car is worth £3k less than the market value?

 

I can see this from the GAP providers point of view. They appear to have been prejudiced by the acceptance of a below market value Insurance settlement.

 

Once you know whether £16k is a fair market value, I would suggest that you re-open the Insurance claim and see whether you can get the GAP and Car Insurers to have contact with each other to resolve with your permission. Perhaps the solution is that they both pay you £500, so you then have a total of the £14k you have paid for the car.

Sorry I have been away on business then family holiday so what has happened so far have your insurance company taken another look?

Hi all,

 

A friend has recently told me that 2.5 years ago they had an accident, in which their own vehicle was declared a total loss.

 

Upon purchasing the vehicle, she was only 17, so the finance for the vehicle was placed in her sister's name. The GAP policy however was placed in the name of my friend, she was also the registered keeper.

 

The GAP Insurer refused to pay out on the grounds that the finance they were covering was not in the name of the policy holder.

 

Upon purchasing the GAP policy, the local dealer advised that this would not be a problem.

 

I believe that the policy was blatantly mis-sold, however is it now too late to raise this as an issue? Who could I direct a complaint to for them? The Gap Insurer or The Dealer?

 

Many Thanks

 

Sounds like you are having a tough time, I work in insurance so I know I can help:-)

 

In this case the policy should have been put in both names. I don't think that it is the gap insurance companies fault as they are right they are not paying out the policy holder. Depending upon what address you two friends live at the may be other consumer regulations the dealership has not followed. But for now I would leave that aside.

 

But you can complain.

 

I would start with the dealership as in theory you are right you friend was sold an insurance product which she could never benefit from. Thus a miss sell. Don't worry about it being too late because you still have time and the FSA can look at cases much further back than this.

 

So start with your dealership then the insurance company who will not want their products being miss-sold and then the financial services themselves.

 

I have not written enough posts to be able to put a link on but type financial services ombudsman into Google.

 

Good luck

 

Let me know how you get on.

Sorry it is my first reply but i saw your question and had to respond.

When you said you have accepted your insurance companies offer did you mean you have banked their payment ? This can make a big difference. I worked in the motor insdustry for 20 years and have specialised in insurance for the last 5 years and now work at a high level within an insurance company.

You have to understand that both the dealership and the gap insurance company and your own motor insurance comapny will not want the FSA involved . This costs them lots and lots in both time and money. Your insurance company have offered you below market value and before you do anything you have to speak to them and ask them to explain their rational behind their offer.

At this point providing you have not banked their payment they should increase their offer.

In this case it is not the dealership or the gap insurance companies fault but your own insurance company ( providing the figures you have been given are factually correct). You might want to read a the FSA treating customers fairly report. It smy first post so I can not put a link in but type it into google. What this means is that they have to treat you in an open and fair way. In fact the FSA take a very dim view of any company who dose not.

It is will be difficult to prove exactly what the dealership said to you as I am sure they will have covered themselves with disclaimers etc.

Let me know how you get on.

Most important do not bank the payment!