ALA Insurance, operating in the South West of England since its establishment, has been under scrutiny for potentially mis-selling Guaranteed Asset Protection (GAP) insurance to car buyers. The region, home to approximately 5,712,000 residents (ONS Census 2021), saw many local dealerships sell GAP policies at significant overcharges compared to online alternatives.
In the South West, GAP insurance was often sold through local car dealerships with a discretionary commission arrangement (DCA). This practice allowed salespeople to earn high commissions based on the price of the GAP policy sold. According to the Financial Conduct Authority (FCA) investigation, many consumers were not informed about cheaper alternatives available online or by other providers. they often did not receive proper cooling-off information, which is a legal requirement for any sale made at a dealership.
The FCA found widespread issues with how GAP insurance was sold across the UK and highlighted that the policies purchased directly from dealerships could be significantly more expensive than those bought independently online or elsewhere. For example, a policy costing £200 when bought separately might have been sold through a dealer for up to £500 due to the high DCA.
How to Complain to ALA Insurance from South West
South West residents who believe they were overcharged for GAP insurance can make a complaint directly to ALA Insurance at https://www.ala.co.uk/complaints. The process is free, and there is no need to use a claims management company. It's important to gather all relevant documents, such as the policy details, purchase agreement, and any correspondence with the dealership.
What Should I Include in My Complaint?
- Policy Details: Ensure you have the exact dates when you purchased the GAP insurance.
- Purchase Agreement: Include copies of any paperwork or emails detailing the terms and conditions of your policy.
- Correspondence: Keep track of all communications related to your purchase, including confirmation emails and receipts.
What South West Residents Should Do Next
Firstly, check what you paid for your GAP insurance compared to independent quotes available online. If there is a significant difference, gather the necessary documents and prepare to submit a complaint directly to ALA Insurance. Remember, under UK law, consumers have cooling-off rights which allow them to cancel any sale made at a dealership within 14 days without any reason.
Do I Have Cooling-Off Rights?
Yes, you do! If you bought GAP insurance from a dealer in the South West, you can use your cooling-off period to cancel the policy and receive a full refund. This right applies for up to 14 days after the sale.
Sources and References
- ONS Census 2021
- Financial Conduct Authority (FCA) Investigation into GAP Insurance Sales
- ALA Insurance Complaints Process at https://www.ala.co.uk/complaints