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Has my son been missold finance.

payday200
payday200 Posts: 5 Forumite
edited 18 May 2009 at 11:01AM in Consumer rights
HI ALL. my son bought his car on finance , the car has been written off due to an accident of which he was not at fault . The insurers have paid the finance company the value of the car , but because he did not have gap insurance of which he new nothing about he now has no car and owes £1600. Are the car dealer or finance company obliged to offer him or tell him about this gap insurance, any help appreciated. PS the £1600 is the outstanding balance of the finance.

Comments

  • Optimist
    Optimist Posts: 4,557 Forumite
    Part of the Furniture
    payday200 wrote: »
    HI ALL. my son bought his car on finance , the car has been written off due to an accident of which he was not at fault . The insurers have paid the finance company the value of the car , but because he did not have gap insurance of which he new nothing about he now has no car and owes £1600. Are the car dealer or finance company obliged to offer him or tell him about this gap insurance, any help appreciated. PS the £1600 is the outstanding balance of the finance.

    Car salesmen often say when selling a car that OFT rules mean they have to tell you about gap insurance, that however is false, they are under no obligation to offer it. They get commission if they sell it and that is the reason it is offered

    I'm sorry to say that in your sons case I'm afraid he has a obligation to pay the outstanding balance.

    I take it your son did not have legal protection on his policy. Have a look at your household insurance to see if you have legal cover if so get in touch with them to see if it is worth while trying to obtain your sons uninsured loss from the other driver.
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
  • payday200
    payday200 Posts: 5 Forumite
    Many thanks for the info
  • melorablack
    melorablack Posts: 1,113 Forumite
    1,000 Posts Combo Breaker
    Normally I see complaints that people were sold GAP insurance, not that they weren't sold it ;)
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