Moto Finance GAP Insurance on loan agreement

[SAVA05]

Evening anybody, Just an query is it possible to claim back Gap Insurance on a motor finiance agreement a form of PPI and a form of mis-selling. Is it classed as optional even though car finiance companies make you feel you have to have it.

[charitynjw]

Re: Moto Finance GAP Insurance on loan agreement

Hi SAVA05, & welcome to Legal Beagles.

In answer to your question - possible, yes.

Have a read of this FOS factsheet - http://www.financial-ombudsman.org.u...insurance.html

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Thanks Charitynjw, I am sure I had Gap insurance which was paid at the beginning of my loan agreement and assuming it was made to feel it was part of the credit agreement to gain finance on the car I purchased 3 years ago. How would I world it to make it feel it was not optional. I am at work now and would need to look through my paperwork tomorrow. Would it effect your monthly car payment amount if I did not have it.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Well I sent in request for refund of Gap Insurance through the Finance Company and stated that it was presented to me as part of the credit agreement and not as optional cover. Also stated that it only covered me for 36 months of the 60 month car finance agreement and why not the whole of the term of the agreement and made to feel it was compulsory to obtain the finance on the car. Fingers crossed and see what they come back with and hope I get a refund back.

[charitynjw]

Re: Moto Finance GAP Insurance on loan agreement

Well I sent in request for refund of Gap Insurance through the Finance Company and stated that it was presented to me as part of the credit agreement and not as optional cover. Also stated that it only covered me for 36 months of the 60 month car finance agreement and why not the whole of the term of the agreement and made to feel it was compulsory to obtain the finance on the car. Fingers crossed and see what they come back with and hope I get a refund back.

Many GAP Insurance policies only cover for 3 years.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

But it is an optional extra that they make you feel as part of the credit agreement. Do you agree?

[charitynjw]

Re: Moto Finance GAP Insurance on loan agreement

Sure.
If it was not made clear at the time you signed the finance deal that it was an optional extra, or if you were led to believe it was a necessary part of the deal etc, you can reclaim.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Because of the amount the car cost I felt obliged to take that cover and thought it formed part of the financial package. They even tried to get me to take PPI cover then but at the time I did not want it as my monthly repayment would of been too much. I e-mailed the car finance who name is on the agreement package and awaiting there response. To be honest you have to go to town and play dumb with these financial institutions to claim back any money.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Hello Guys, I have a quick up date about my GAP Insurance. Motonovo Financial have decided to give me back £270 for my Gap Insurance as a matter of good will gesture which included 8% simple if I accept there offer after only putting in my complaint last week. The other thing is I also put in a complaint about my Car Finance credit agreement with the same company which did not add up, according to my old paper work and there documents etc I have it stated that PPI will be added to my monthly car premium but hidden within the payments and wont be shown as a separate repayment direct debit. In there final offer letter they said no PPI was paid as I cancelled it a few days later when I got the car 3 years ago. That is confusing, are they just saying this as they were quick to give me back the GAP Insurance money to maybe fob me off, and this optional to purchase fee that is paid at the end of the credit agreement I also complained about, they said its vital and forms part of the hire purchase, is this true or should I accept there offer.

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

Hi SAVA05 - and well done for getting the GAP insurance refunded. They have now effectively admitted mis-selling, and I doubt if their assertion that it was a goodwill gesture would stand up as a probability !!!

To see what happened about the PPI on your car loan, we need to see the original agreement, where the PPI should be shown separately. From this, we should be able to deduce what portion of each loan repayment was actually PPI. If the loan payments do not suddenly reduce by this amount later on, then this would indicate that PPI continued to be charged. Can you scan and post an anonymised copy of the agreement ?

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Hello Bill-K, how do you scan it, PPI is not shown on my Credit agreement but documents state it would be not shown as part of my credit agreement payments but hidden within my month premiums. What I am going to do on Monday morning is ring the insurance part of the department to confirm if PPI is still being paid or cancelled at the time Motonovo said and take it from there. If no PPI was paid I will accept there offer.

[ostell]

Re: Moto Finance GAP Insurance on loan agreement

I would accept their offer and bank the money THEN start on the PPI claim.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Your right Ostell, the part I have to sign refers to the Gap Insurance refund part. But will pursue the insurance department ( Red Sand Insurance ) on Monday which are separate to Motonova to double if no PPI was added to my agreement.

[Bill-K]

Re: Moto Finance GAP Insurance on loan agreement

I agree with Ostell - but make sure that acceptance of the GAP refund offer is not in Full & Final Settlement of all insurance claims. As a goodwill gesture, it shouldn't be, though.

You need a scanner to scan documents. You can often do this at your local library if you don't have one yourself, and don'e know anyone who does. Email the copy to yourself, then you can post it here as an attachment when you get back home (use the 'Go Advanced' button, then 'Manage Attachments')

It seems very strange to me that PPI is not mentioned in the loan agreement at all, even though it is not usually shown as a separate monthly repayment.

[SAVA05]

Re: Moto Finance GAP Insurance on loan agreement

Hello Bill-K, what do you mean by its strange that PPI is not mentioned in the loan agreement.