Gap insurance question ....

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
3 replies 687 views
jasmorjasmor Forumite
1 Post
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hi all,

I have a "car" finance agreement with Welcome.
Firstly in 2005 I asked to voluntary surrender my old car and get another as this was in my contract.
I have recently found out that my old finance was not written off and my "new" car is under a personal loan agreement and not a HP agreement.
My own fault for not reading paperwork corectly. I contacted Financial Ombusman who said there was nothing they could do.

I was sold GAP insurance with my new agreement which was added to my finance.....

My question to you all is can you have GAP insurance with a personal loan and secondly can I claim it back??

TIA

J.

Replies

  • di3004di3004 Forumite
    42.6K Posts
    jasmor wrote: »
    Hi all,

    I have a "car" finance agreement with Welcome.
    Firstly in 2005 I asked to voluntary surrender my old car and get another as this was in my contract.
    I have recently found out that my old finance was not written off and my "new" car is under a personal loan agreement and not a HP agreement.
    My own fault for not reading paperwork corectly. I contacted Financial Ombusman who said there was nothing they could do.

    I was sold GAP insurance with my new agreement which was added to my finance.....

    My question to you all is can you have GAP insurance with a personal loan and secondly can I claim it back??

    TIA

    J.


    Hi and welcome ;)

    In regards of being mis sold the insurance then yes you can try to reclaim this back.

    The FOS should be able to help if the business involved does not uphold in your favour as you have to give the business, the ones who arranged and sold you this finance 8 weeks in full to respond.

    Keep at them until they resolve, or until they issue you with the final decision, then of course they should also enclose details of the FOS with the final decision, you can then take your complaint to these if your not happy with the final outcome.

    For more info with a checklist of mis selling reasons, check the link below, you will also find templates, if you want to use them, or write in your own words, with your reasons you have for being mis sold.
    http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

    You do not have to write the amounts down though.

    Best to post by recorded delivery, as this if your proof of posting.

    Good luck and please let us know how you get on, and ask for help if required.;)

    Di
    The one and only "Dizzy Di" :D
  • This is an interesting point. Im picking up my new car tomorrow. With my first car, I got GAP insurance (valid for 3 years.) Im getting rid of mine after less than 2 ... am I able to reclaim the value for the second and third year?

    Cheers
  • melorablackmelorablack Forumite
    1.1K Posts
    ✭✭✭
    You can have GAP insurance with a personal loan which is to be used to buy a car.

    The gap is there so that if your car gets written off, the insurer will pay you the value of the car and the gap will pay the shortfall between the value of the car and the remainder of the loan.

    As it is a one off payment you normally can't get a rebate if you cancel it, so you may as well keep it if you have it already but if you think it was mis sold it can be reclaimed.

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