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  • FIRST POST
    Queeny_chick
    GAP Insurance? Is it PPI?
    • #1
    • 31st Oct 12, 9:01 PM
    GAP Insurance? Is it PPI? 31st Oct 12 at 9:01 PM
    I was sold "gap insurance" along with my car loan, via the car dealership. I distinctly remember being pressured into having this "gap insurance" and was even told I needed to see the manager, before reluctantly agreeing to it, it was described as insurance that would pay any gap in the value of my outstanding loan to the amount the insurance might pay out on the value of the car. The loan was paid off quite some years ago, I have written to Black Horse for my T&C's, after asking me to prove my maiden name, its been 6 weeks since I last heard anything, I am not sure if it is worth pursuing. A few questions;
    1 - Is it the same as PPI?
    2 - If yes, should I not bother with the T&C's and go straight for requesting my money back.
    3 - Because it was sold via a car dealership do I have any claim anyway, I think this dealership has since gone bust.

    I am grateful for any help and am really only doing this in the hope of stopping the 3 calls per day I get from PPI companies.

    Thanks
Page 1
  • di3004
    • #2
    • 31st Oct 12, 9:05 PM
    • #2
    • 31st Oct 12, 9:05 PM
    Hello there

    From what I can recall, by coming across threads here in the past, I think it is different to that of PPI.

    However, like any financial product, if your not happy and have concerns, you still have the right to make a complaint to the business/dealer that sold you the product.
    The one and only "Dizzy Di"
    • Moneyineptitude
    • By Moneyineptitude 31st Oct 12, 9:05 PM
    • 14,734 Posts
    • 6,187 Thanks
    Moneyineptitude
    • #3
    • 31st Oct 12, 9:05 PM
    • #3
    • 31st Oct 12, 9:05 PM
    Is it the same as PPI?
    Originally posted by Queeny_chick
    Not at all related.
    I am really only doing this in the hope of stopping the 3 calls per day I get from PPI companies.
    Originally posted by Queeny_chick
    How will making a complaint stop cold calls from opportunistic companies who have no way of knowing if you had PPI or not?
    • Moneyineptitude
    • By Moneyineptitude 31st Oct 12, 9:07 PM
    • 14,734 Posts
    • 6,187 Thanks
    Moneyineptitude
    • #4
    • 31st Oct 12, 9:07 PM
    • #4
    • 31st Oct 12, 9:07 PM
    if your not happy and have concerns, you still have the right to make a complaint to the business/dealer that sold you the product.
    Originally posted by di3004
    Only if those concerns are valid, verifiable and truthful of course.

    I'm not sure what "concerns" there can be with gap insurance:
    www.which.co.uk/money/insurance/guides/gap-insurance/what-is-gap-insurance/
    Last edited by Moneyineptitude; 31-10-2012 at 9:10 PM.
  • di3004
    • #5
    • 31st Oct 12, 9:08 PM
    • #5
    • 31st Oct 12, 9:08 PM
    ......also to add, if the dealership is no longer active, or not been taken over by another business, and if sold the account after 14th Jan 2005, as they would have possibly been regulated by the FSA from then on, you may be able to make the complaint/claim to the Financial compensation scheme (FSCS).

    No harm in contacting the FSCS to check with them first before you decide to go any further.

    http://www.fscs.org.uk/contact-us/

    They will check if the company are listed with them, if they are, and if your eligible, they will arrange to send you out a form to complete.
    The one and only "Dizzy Di"
    • Moneyineptitude
    • By Moneyineptitude 31st Oct 12, 9:12 PM
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    Moneyineptitude
    • #6
    • 31st Oct 12, 9:12 PM
    • #6
    • 31st Oct 12, 9:12 PM
    No harm in contacting the FSCS to check with them first before you decide to go any further.
    Originally posted by di3004
    I think you're rather jumping the gun here, Di, GAP isn't an insurance with the inherent faults of PPI.

    It's a rather useful insurance as it provides a cushion against 'negative equity', whereby the level of debt exceeds the value of the car.

    Read here:
    www.which.co.uk/money/insurance/guides/gap-insurance/what-is-gap-insurance/
    Last edited by Moneyineptitude; 31-10-2012 at 9:18 PM.
  • di3004
    • #7
    • 31st Oct 12, 9:20 PM
    • #7
    • 31st Oct 12, 9:20 PM
    Queeny-Chick

    Many have asked this question in regards of GAP and can get it confused with PPI, but as far as I am aware it's not a product you have to have.

    I was a newbie once upon a time and can remember asking all-sorts of questions when first starting out on this site and many others.

    I still have lots to learn, but we've all been there, and of course have also learnt from my very own personal experience and others from this site.

    Maybe worth checking through the long threads, OK it's endless LOL, but there are a few in regards of GAP, and see where they may have squared off.
    The one and only "Dizzy Di"
  • Queeny_chick
    • #8
    • 31st Oct 12, 9:23 PM
    • #8
    • 31st Oct 12, 9:23 PM
    Thanks for the speedy advice, I checked out the "Which" link and think I was probably sold it correctly, I did have high loan to value, think I've just got caught up with the whole PPI reclaiming, it was settled in 2003, so it is a long time ago. I just remember feeling very vulnerable and pressured when I was sold the loan. Thanks again.
  • di3004
    • #9
    • 31st Oct 12, 9:25 PM
    • #9
    • 31st Oct 12, 9:25 PM
    I think you're rather jumping the gun here, Di, GAP isn't an insurance with the inherent faults of PPI.

    It's a rather useful insurance as it provides a cushion against 'negative equity', whereby the level of debt exceeds the value of the car.

    Read here:
    www.which.co.uk/money/insurance/guides/gap-insurance/what-is-gap-insurance/
    Originally posted by Moneyineptitude

    Helllllllllllooo there

    Yes that is right, even though we are not sure of the "concerns", I think the FSCS deal with other issues apart from PPI, correct me if I'm mistaken.
    My aunt had another matter dealt with through them, not ppi related but it was a matter that ended up being resolved by them.

    Hey you getting addicted now then I see?
    The one and only "Dizzy Di"
    • Moneyineptitude
    • By Moneyineptitude 31st Oct 12, 9:27 PM
    • 14,734 Posts
    • 6,187 Thanks
    Moneyineptitude
    Thanks for the speedy advice, I checked out the "Which" link and think I was probably sold it correctly, I did have high loan to value, think I've just got caught up with the whole PPI reclaiming, it was settled in 2003, so it is a long time ago.
    Originally posted by Queeny_chick
    As Di3004 said, you could still complain of mis-selling if you had a mind to. I don't know what your complaint might be, though!
    • Moneyineptitude
    • By Moneyineptitude 31st Oct 12, 9:29 PM
    • 14,734 Posts
    • 6,187 Thanks
    Moneyineptitude
    Hey you getting addicted now then I see?
    Originally posted by di3004
    Not as bad as you with your 42,000 posts (yet)
  • di3004
    Not as bad as you with your 42,000 posts (yet)
    Originally posted by Moneyineptitude
    You will get there sooner rather than later, and doing fab too!

    I am all over the place at the mo, defo need new fingers for sure, these have worn out
    The one and only "Dizzy Di"
  • di3004
    As Di3004 said, you could still complain of mis-selling if you had a mind to. I don't know what your complaint might be, though!
    Originally posted by Moneyineptitude
    That's the thing, I don't think it will come under the mis selling category as such, "I think it would be the case if they didn't pay out for a claim made for what is covered" but this does not apply to the OP, so not sure as said, this one I'm not too certain.
    The one and only "Dizzy Di"
  • malco1957
    I was pressurised into buying GAP insurance for an expensive Audi, when I could no longer affort it I contacted the finance company and they offered to take the car back. Job done I thought, any shortages would be met by the insurance ... WRONG ended up facing a large gap between the amount I'd financed and the auction sale of the car. Then they came after me for the difference..some £ 15k, which I feel was misselling of the policy and was unfair. Of course they tell me now at every attempt to claim it is their fault that I'm wrong. Am I wrong or should I claim against them ?
    Last edited by malco1957; 12-11-2012 at 5:05 PM.
    • dunstonh
    • By dunstonh 12th Nov 12, 5:30 PM
    • 81,102 Posts
    • 46,355 Thanks
    dunstonh
    I was pressurised into buying GAP insurance for an expensive Audi, when I could no longer affort it
    Sounds like GAP was a good idea then. I would question why you were buying a car you felt was expensive.

    when I could no longer affort it I contacted the finance company and they offered to take the car back. Job done I thought, any shortages would be met by the insurance
    GAP has never done that. It is actually very simple in what it covers.

    which I feel was misselling of the policy and was unfair.
    What evidence do you have that shows the dealer told you the policy covered something that it doesnt?

    Of course they tell me now at every attempt to claim it is their fault that I'm wrong. Am I wrong or should I claim against them ?
    The problem is (as you can see from my response) that you almost certainly cannot prove your allegation. The dealer could have done that. It doesnt sound likely. It it more likely you have misunderstood or forgot. Dealers are there to sell what they can. They are allowed to pressure sale as long as they do not cross a line. Even if the dealer did give you a bunch of porkies, the problem is going to be proving that.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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