Car Finance / Gap Insurance Nightmare!!!

Jonny1275

Need a little advice off you savy people if you can...

In 2009 I bought a car on finance and also purchased gap insurance. In 2011 I was burgled and amongst other things my car keys and car were stolen. My car insurers dragged their feet and finally came up with a total loss settlement offer in the August 2011. I approached the gap insurers who said the offer was too low and after going back to my car insurers they upped their offer. I then went back to the gap insurers and asked what information they needed, they advised that I didn't need to do anything as they now had the required information and would liaise with the finance company.

I didn't hear anything back after that and to be fair I was dealing with some family problems so didn't give the matter any further thought.

Mid last year I received a 'please contact us' letter from the finance company. A bit bewildered I called them and was advised that it was nothing to worry about, a computer had sent the letter by mistake.

Then in November I received another letter advising I had defaulted on my loan?!?! I called again and after a lot of digging and having my call transferred it turned out that my gap insurers had not acted back in 2011 and the shortfall of the loan had not be paid. The finance company (for reasons beyond me) had taken the car insurance settlement and basically used it to make the monthly payments for two years and when this money ran out they then wrote to me to say I'd defaulted on that months payment.

I've spoken to the gap insurers who said they didn't receive a claim form even though I've advised them that they said they didn't require any further info off me back in 2011.

I'm now in the position that there is nearly £1800 outstanding on the loan that I wasn't even aware of.

Any advice would be welcome..

InsideInsurance

Obviously lodge a formal complaint against each company for their respective errors stating you intend to take them matter to the FOS.

They then have 8 weeks to respond or you can escalate it.

Jonny1275

InsideInsurance wrote: »

Obviously lodge a formal complaint against each company for their respective errors stating you intend to take them matter to the FOS.

They then have 8 weeks to respond or you can escalate it.

Thanks for the feedback. My concern is that the finance company are placing defaults on my credit file each time a payment is missed, I found out that I had defaulted Decembers payment seen as a d/d hadn't been in place for over 2 years.

If I launch a complaint with the fos and it takes eight weeks, my credit file will be a right mess.