GAP ins included in loan agreement

caks83

I have had three GAP policies

1. currently with VWFS & GAP with Santander
2 Ford finance
3 black horse.

1. I have a golf and took the gap, the price of gap has been added into total borrowed, is this correct or missold?

2. I had a mondeo which i bought new and sold within 3mths i took out gap but never used it should i be entitled to a refund, this was in 2005. also it was added to price of car.

3. I had a rover with black horse and used the gap insurance, but it was included in credit agreement.

Should i be paying interest for 4 yrs etc for gap insurance ?

picky123

First of all. Gap is not ppi. Gap is a product which makes up the shortfall if your insurance company write off your vehicle, allowing you to purchase a new vehicle at the original price. It is fsa regulated, but is very difficult to mis sell unless you were told you had to have it, which is hard to prove. There is no problem with adding it to the. Aloe of the car and finance the whole amount. With regard to your other questions, the gap is for a set amount of time, normally 3 years, no refund is made if vehicle is sold. Like ppi purchased at a motor dealer no complaintis possible to fos if sold before 14 January 2005 as it was unregulated product. Gap is a very good product

Tiddlywinks

Like all insurance, it is there as a 'just in case' - you don't get your money back just because you didn't need to make use of it.

You bought these products - why did you not ask about the detail at the time?

roonaldo

You need to understand what insurance is.

caks83

Thanks for your reply.

I understand how insurance works but my point was should it be in my finance agreement. I thought way back at the start the problem with loans was that the ppi was included in amount borrowed and that this was missold as it should not be charged interest.

Also it was forced upon me along with another product supaguard ?? but as you say its the dealer but it happend in 2011. so im i covered, surely most of these claim are hearsay etc

dunstonh

I understand how insurance works but my point was should it be in my finance agreement.

Nothing wrong with having it that way. Your choice is either to pay it by cheque or finance it. Its down to personal choice.

I thought way back at the start the problem with loans was that the ppi was included in amount borrowed and that this was missold as it should not be charged interest.

It can be where a monthly payment option was available or more suitable. For PPI, monthly premium is best as it is open ended. Single premium expires (typically before the loan does). So, it can very easily be classed as unsuitable. Paying for insurance on credit is not a problem. Indeed, everyone who buys their car insurance and pays monthly is doing it on credit. so, no problem adding GAP that way

Also it was forced upon me along with another product supaguard ?

And what evidence do you have to support that allegation? If the dealer says no it wasnt, that complaint is dead in the water.

surely most of these claim are hearsay etc

most of the hearsay ones only get rejected unless there is another identifiable failing or they get lucky with an auto payout. Autopayout mainly happens with banks only.