Black horse VT disputed gap and warranty charges

[Grizzle34]

Hi Rob and others
First post after many months of browsing for advice and guidance wonderful site and a huge thank you from me personally for the templates for VT

i have sent away the VT letter by recorded post on the 8th january 2019 it was recieved a few weeks ago having made the final payment of the 50% i then sent the letter, i have since had a call from black horse to say as i had gap insurance and a warranty in the HP agreement i would be liable for £572.40

Today 25/1/19 i have received a letter informing me that should i wish to continue then i need to make a payment of £572.40 (ignore the 2nd schedule amount outstanding that's already been paid)

Now the agreement has those Gap and warranty products on it, but it has a total amount payable and i only make one payment to Blackhorse

Am i right in thinking they are wrong, she drew me to section 11.1 which i have included in the link below of all docs.

i have attached the HP agreement and a letter we received today asking us if we wanted to continue the VT we had to pay the £572.40 and either drop the car off at the local BCA auctions which is a 45 miles round trip for us or pay £75.00 for an agent to collect it.

The HP agreement and recent letter are all in this link https://photos.app.goo.gl/a8TtmZbH9ffqoSSi6

I would be very grateful if someone could advise me on the Gap and warranty payment of £572.40 i'm of the understanding as its included in the total amount payable and i only make one DD payment per month and not separate payments for these products that i shouldn't have to pay anything else.


Many Thanks

Graham

[Guest]

Hi Graham.

Id be interested to know how this went as Im in the same situation right now saying I owe £375 for a 2nd schedule amount(presume GAP insurance)

Jim

[des8]

The GAP insurance is separate from the car finance.

The finance house have paid the full premium up front and are entitled to be reimbursed by you
The insurance cannot be cancelled by the finance company as it is in your name.
You need to cancel the insurance with the insurers directly yourself
When you cancel you will receive a return of some premium (not necessarily pro rata or what you had to pay the finance house)

I think R0b*might have a different view!

[R0b]

The issue is whether or not the GAP insurance is considered as the total price for VT purposes or, it is an entirely separate contract. I know my early views were that additiona insurance products would form one single agreement and therefore as long as you hit the 50% mark in accordance with the agreement, then you don't need to pay more than that.

However, I've since been leaning towards treating it as a separate agreement to the HP element. The problem is that most lenders also treat the GAP insurance as terminated even though you only terminate the HP element, despite the contracting saying that the insurance is paid by way of instalments. Therefore as far as I see it, lenders have no right to demand a lump sum from you because there is generally no right in the contract to do that. Even if there is, I'd think that's an unfair contract term as it allows lenders to unilaterally alter what was previously agreed and likely to be a penalty for exercising your statutory right.

Suggest you check the terms of the contract and see if there is any clause in the contract that allows them to terminate the insurance element of the contract on voluntary termination. If there isn't, it's wrongful termination on their part.

[Mustdash630]

How did you get on with this I’m in exactly the same predicament with exactly the same company
thanks