Gap insurance

tgon

My son was "sold" gap insurance of £200 on a car a couple of years ago over the telephone but refutes that he authorised the transaction. After launching a complaint and repeated requests the insurance company cannot provide any copy documentation evidencing that he authorised the insurance. My son says he has none either. There has been no further contact for 2 years. (He's young, it was "head doing" so he gave up!)

A recent credit check on Equifax this week shows the dispute as outstanding and a query to the insurer yesterday states the complaint was rejected and the balance is still outstanding.

Assuming my son is correct in his facts, what is the process to escalate this and remove the dispute from his credit file?

Thanks in advance.

dacouch

Have you asked them for a copy of the phone call or a transcript?

forgotmyname

Why has it affected his credit file? Did he stop paying instead of cancelling it?

Or fallen behind in a loan?

tgon

Apparently he has asked for a copy of the phone tape or transcript but "they couldn't find it".

My son paid the car loan off completely apart from £200 gap insurance which he claims he never took out. The insurance company dosent seem to be able to evidence that he did take it out but none-the-less they have marked his credit file with a defaulted "outstanding balance".

InsideInsurance

Get them to put the fact they reject the complaint in writing and then send it off to the FOS for them to adjudicate - tell the insurer you will be doing this as it may get a more favourable response

Just_Some_Guy

If they don't have your son's signature on a policy form nor his voice on tape saying "Yes I want this" then it never happened. Your son will be able to clean up his credit file by going down the official-complaint-then-FOS route, which will take time but will work in the end.

Your son doesn't have any documentation because the policy never existed!

BJV

It all sounds very wrong.

Even if your son lets say did say yes on the telephone it is controlled via distance selling rules as well as the FSA. He would of had to have been sent some documentation. This is so he can check the terms and make up his mind about the cover. From the moment that he gets the documents he then as a cooling off period.

If he never got the documents in theory his cooling off period has never started. Ok it would be hard to prove but this as well as no written or verbal proof.

OMG the do not have a leg to stand on.

You will have no problems. Just let the insurance company know the full story and request them to remove all trace from his file. It may take some time as they have a certain number of days in which to respond to all customers but it will be a lot quicker than going down the Ombudsman route.

Good luck and do not let it rest it is far better to sort it out now than wait until his credit score is needed.

tgon

Thanks for the replies. He called them today and explained he wanted his complaint rejection in writing to take to the FOS, that the record in his credit file may adversely affect his future credit and that this matter has gone on far to long. I also heard the conversation. The response was yet another "You're right, this shouldn't be happening. We'll look into it and call you Monday."

I advised my son to call them Monday. Does he need the physical complaint evidence to escalate to the FOS?

Many thanks.

bsisonu

tgon wrote: »

Thanks for the replies. He called them today and explained he wanted his complaint rejection in writing to take to the FOS, that the record in his credit file may adversely affect his future credit and that this matter has gone on far to long. I also heard the conversation. The response was yet another "You're right, this shouldn't be happening. We'll look into it and call you Monday."

I advised my son to call them Monday. Does he need the physical complaint evidence to escalate to the FOS?

Many thanks.

yes he should must keep physical..................

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forgotmyname

Yes he will have to show he tried the formal complaints procedure before the FOS will look into it.

They look at the comlaint and the companies reply to it and hopefuly side with you.

BJV

The FOS are actually very helpful.

They understand that most members of the general public will not have access to telephone recordings etc.

But they always want to see that you have attempted to sort things out before it gets to them so find as much physical proof as you can as it will help.

They want to make sure that you have been treated fairly and in the case it is anything but. If possible wait until Monday and see what their response is. It will be a lot quicker and easier if they can sort it out with having to go the FOS but don't worry if you have to as they will guide you through.