Black Horse VT with GAP

[Guest]

Hello - Im in the process of VT with Black horse.Ive paid over halves value on my car but they say I owe £375 of Gap insurance. Am i required to pay this as the contract will be ending? The GAP insurance amount is included in the HP monthly payment.
Black horse said on the phone I'd have to pay this within 30 days of VT. I asked them, if I couldnt afford it, could this be paid on a monthly basis, she said yes but I'd be blacklisted for credit for up to 6 years.

Any help would be appreciated.

Thanks

[R0b]

Hello,

I remember you posting on a similar thread, and I gave an answer there. It would be helpful to see the terms and conditions you signed up to as there might be something in there that could support you, but otherwise my response is going to be generic.

https://legalbeagles.info/forums/for...rranty-charges

[Guest]

Hi rob
Thanks for getting back to me.
I have attached all the information I have, if you can share any light?



I look forward to your response.

Many thanks

[R0b]

So, there's a few problems (and questions) I have spotted.

On the first page where it says "Termination: Your Rights" Blackhorse have modified the wording and added in "Note - you will still have to pay the outstanding balance for Insurances". The problem is that the termination statement is a statutory statement that must be included in every hire purchase contract and this is set out in the Consumer Credit (Agreements) Regulations 2010. For reference, you can find this in Regulation 3(4) (link here) and the statement word for word is set out in Schedule 2, Form no.9 (link here).

They key provision is Regulation 7(1) (link here) and says that any Form specified in Schedule 2 shall be reproduced without alteration except. Therefore, the additional wording about the insurances are null and void.

The other issue is that under clause 9 it says that if you end the agreement then you return the goods and make the payments in clause 11. Clause 11.1 talks about certain payments that must be made, one of which is the Total Amount Payable of the insurances. Now, two strands (or possibly more) of arguments here:

a. Total Amount Payable is capitalised meaning it is usually defined somewhere in the agreement. As far as I can ascertain, that definition is on the first page, being the amount set out in the insurances box. Your immediate argument here is that your statutory right says you are liable to pay 50% of the total price payable (as defined in the CCA, if you want that definition then see my VT Guide). Assuming you've met that threshold, there's nothing more to pay, it's as simple as that.

b. The other strand, is that Blackhorse area treating the insurance as a separate agreement to the HP element. In that case, you could argue that:*

i. You exercised your right to terminate the HP agreement and not the insurance one and they are treating both contracts as terminated. Therefore, they have wrongfully terminated the insurance contract and you should not be liable for any remaining part.

ii. Even if the above argument doesn't stick, then you could say that the clause is an unfair contract term under section 62 of the Consumer Rights Act 2015. The term is unfair because it is effectively penalising you for exercising a statutory right and therefore allowing Blackhorse unilaterally terminate the insurance contract and claim the remaining balance on demand, even though it was originally agreed that you can make the repayments over a certain period of time. They agreements are not interdependent on one another and the insurance agreement is essentially a loan agreement and should be treated as such.

I suggest you have a read of the Competition and Markets Authority's guidance on unfair contract terms (link here) and in particular, pages 92-93.

These arguments are the types that you would expect to say in court and I highly doubt that Blackhorse will keel over here unless either one of you start that legal process. Blackhorse are known sometimes for issuing adverse entries on your credit file, but there have been some threads on here where posters have said they eventually backed down, so you need to be careful and consider how far you are prepared to stand your ground. If you can afford to make the payment, that is probably going to be a much easier solution than arguing about principles.





*

[des8]

You could of course write ti the Gap insurers yourself and cancel the policy.
Black horse cannot cancel the insurance... that can only be done by the policy holder.
On cancellation the insurers should make a return of premium.
This won't be the amount claimed by Black Horse, but might lower it to such an extent that it is no longer a problem.

[Guest]

Thank you both for the useful replies.

Does anyone know who Blackhorse use as their GAP provider?

I have paid over halves value so doubt Id have to pay any additional costs other than the GAP(and any damages they try put onto me once vehicle has been returned). Ideally dont want to have to pay that but am I within my rights to ask them to do that via a new Direct Debit as youve (Rob) stated in one of your draft documents?

Ive attached the VT letter from them and below is a draft for return, if you dont mind having a look at please?

Many thanks moving forward

See below

____________


Dear Sir or Madam,

Termination of hire-purchase agreement in accordance with section 99(1) of the Consumer Credit Act 1974 (“CCA 1974”)

I am writing to inform you that I am exercising my right to terminate the above hire-purchase agreement with immediate effect in accordance with Section 99 of the CCA 1974. The reason for terminating the agreement is because I am experiencing financial difficulties due to COVID-19 and it is no longer possible to keep up with the repayments. Under Section 100(1) of the CCA 1974, my liability is limited to one-half of the total price payable which, according to the terms of this agreement, is £11,451.30. As at today’s date, I have paid £14,389.03 and I am therefore no longer required to make any further payments.

I have also inspected the vehicle and I am of the opinion that it is in a reasonable condition given its age whilst accounting for fair wear and tear. Photographic evidence has been taken in the event of any future dispute as to the state of the vehicle. The vehicle is available to collect from the above address on giving reasonable notice, otherwise if you prefer to have it delivered to another location, I am willing to consider this provided that you agree to pay my reasonable costs and expenses. Please note the vehicle is insured up to 1st June 2020 only.

Please note that this termination letter is in respect of the hire purchase only. I am aware that I also took out GAP insurance at the same time but I do not wish to terminate this arrangement. I will continue to pay the monthly instalments of £11.34, although I will need to set up a new direct debit because the existing one included the hire purchase and insurance instalments together as a single monthly payment.

I would appreciate if you could contact me on email above within the next 14 days to discuss the next steps.

Yours faithfully,

[R0b]

Maybe I've missed something, but you've already exercised your right, so I don't quite understand why you are sending them the same information again?

Any response should be tailored around what I mentioned above.

As for the GAP provider, that should be on your paperwork.

[Guest]

Hi Rob A

Thanks for the reply. I havent sent them anything yet, only spoken to BH on the phone, thats when they sent me the letter above, saying I intented to terminate the agreement, the template above has not been sent yet as Im still not 100% sure about the GAP payment.

This is where it gets more confusing... bear with....

When I bought the car in 2018 from Motorpoint, I was asked what the intention of purpose was and I told them the vehicle would be used for 'hire and reward' as I was in the process of becoming self employed as a Private Hire/taxi driver. They asked what mileage I'd be doing so I estimated 30K/year. If I recall back then GAP was mentioned but there was some uncertainty from Motorpoint if I would be covered, anyway they talked about some other cover like GAP (I cant remember, I find the whole buying a new car process quite overwhelming) and said I would be covered.

Looking into GAP more, should I have been sold this if using for hire or reward? Please see the document attached from Motorpoint.

If this was misold where does this leave me now?

1.Am I expected to still pay the remaining GAP if it was misold?
2.Should I contact motorpoint to ask them what actual insurance I was sold?
3. How would this alter my draft letter

Thanks for the continued support with this.

[Guest]

I have just found this which is what I beleive I was sold.

[Guest]

Further update

After doing further digging it seems I was sold something similar to GAP, something Motorpoint refer to as 'Asset Protection (Hire & Reward)'

See link below:

I then contacted Motorpoint help chat online and it seems I can claim for money back from this insurance from 'Autoprotect' the company that administrates the insurance products for them. See image.

Now do I pay up or question the insurance payments?

Any help is greatly appreciated.

Many thanks

[des8]

Interestingly if you go to Motorpoint Asset Protection (Hire and Reward) here (https://www.motorpoint.co.uk/extras/hireprotection) and click for more information a policy wording comes up.
Under definitions appears*“Excluded vehicles” means any which: • *******Are used for hire or reward,"

I would cancel it, just to make sure of obtaining a refund of some sort.
I would then ask them (Motor point) what cover do they actually give for Hire & Reward .... whoever drafted that policy wording should have a red face!
Obviously using the same policy wording as for their standard gap insurance, and overlooking the exclusion

[Guest]

I went onto the Auto Protect website and it asks you to download their app, for claims / cancellations. I put in my details and it seems I could cancel it myself for an admin fee of £35. I will call motor point tomorrow and Auto Protect for further information. Will update tomorrow.*
Thanks

[R0b]

I wonder if you could argue that the product was not suitable for you if as Des says the definition excludes vehicles used for hire and reward. Looks like a clear mistake but that might depend on whether the rest of the terms fit with the hire and reward policy. If it doesn't then there could be grounds for a refund, but that's something you would need to consider.

As for paying for the remainder of the balance or challenge them, again that is your choice you need to make and weigh up whether it is worthwhile.

[Guest]

Thanks Rob
Im contacting Motorpoint today to ask their advice, as far as Im aware as the policy holder of the 'GAP' only I can cancel it and £35 seems a much better deal than having to pay £305 to Black Horse.

Another quick point with regards the £70.36 deferred payment fee, should I suggest that is paid or because I have paid over halves value, not even mention that in my VT letter to them (sending Monday)

Once again, thanks

[Guest]

Update

I emailed the Insurers today (Assett Protection) with the following


Hello


I purchased a vehicle from Motorpoint in May 2018.



Unfortunately Im in the process of VTing my vehicle with Black Horse due to COVID-19 and as a result my income has ceased.



At the time of sale I was sold Motorpoint Asset Protection (Hire & Reward) insurance, which I beleive you are the company that adminstates this asset protection.

Black Horse are telling me that I am liable to pay them £305.97 for this insurance.

From looking into things and using the app on your website I beleive I have the ability to cancel this insurance myself for £35.

I'd apprectiate it if you can share any light into this matter please. Thanks in advance.

I then got this reply from them:

Good Afternoon

As you have not submitted a claim, you can cancel your policy and receive a pro-rata refund but you must pay a £35 admin fee to do so.

Below are the instructions on how to cancel your policy

6. CANCELLATION

6.2. If you wish to cancel your policy after 30 days and you do not wish to transfer the policy to a replacement vehicle, you will be entitled to a pro-rata refund on the remainder of your policy. This will be calculated monthly and is paid for each full month left to run, and an administration fee of £35 will be charged to reflect the administrative cost of cancelling the policy.

Should you wish to cancel your policy you will be required to submit the request and make the payment via the AutoProtect claims app or online.

• Download the AutoProtect app by searching your app store with the words AutoProtect Claims; or text the word APAPP to 88802. You will then receive a download link via SMS. Messages are charged at your standard message rate.
• Or visit www.apapp.co.uk

  AutoProtect | claims app, Asset Protection, SMART, Tyre, Alloy The AutoProtect app makes it quick and easy to start or manage an Asset Protection, SMART, Tyre, Alloy or Complete Wheel claim. Text 'APAPP' to 88802 (UK policy holders only). www.apapp.co.uk

  .

If the policy has not been paid in full, you will be entitled to a pro-rata refund on the amount you have paid.

Kind Regards
Katie Lyon
Customer Care Team


What would your advice now be, moving forward?

Many thanks