Car Care Plan, a long-established provider of warranty and GAP insurance products, has been implicated in the widespread mis-selling of GAP insurance. Sold through franchised dealer networks, Car Care Plan’s GAP policies have been criticised for their inflated costs compared to similar online offerings.
What is Car Care Plan?
Car Care Plan Ltd offers extended warranties and GAP insurance to vehicle owners across the UK. Their GAP products are designed to cover the difference between what your insurer pays out in the event of a total loss and the outstanding balance on your finance agreement. However, these policies have been sold through dealer networks with significant mark-ups.
How GAP Insurance Mis-selling Works
GAP insurance mis-selling occurs when dealerships sell customers more expensive products than those available elsewhere. The Financial Conduct Authority (FCA) found that consumers were often unaware of cheaper alternatives online and were not provided with adequate cooling-off information or the chance to shop around. Dealers would use high-pressure sales tactics, leading many buyers to purchase GAP insurance without proper consideration.
For example, a GAP policy sold by Car Care Plan through a dealership might cost between £300-£500, while the same coverage can be obtained online for as little as £50-£150. This discrepancy is often due to a discretionary commission arrangement (DCA) where dealers earn higher commissions on in-house GAP policies compared to third-party offerings.
[How to Complain](https://mlj.org.uk/guides/how-to-complain-to-your-lender) About a Car Care Plan GAP Policy
If you believe you have been mis-sold a GAP policy by Car Care Plan, it is essential to take action. You do not need a
claims management company; the process can be handled directly with Car Care Plan at their dedicated complaints page: https://www.carcareplan.co.uk/complaints.
To file a complaint:
- Gather Documentation: Collect all relevant documents including purchase receipts, policy details, and any correspondence related to your GAP insurance.
- Review the Policy Details: Ensure you understand what was sold to you and compare it with alternative policies available online or from other providers.
- Submit Your Complaint: Visit Car Care Plan’s complaints page and follow their step-by-step process for submitting a formal complaint.
Your Cooling-off Rights
Consumers have a 14-day cooling-off period after purchasing GAP insurance, during which they can cancel the policy and receive a full refund. To exercise this right:
- Notify in Writing: Send an email or letter to Car Care Plan requesting cancellation.
- Keep Records: Retain copies of all correspondence and documentation related to your complaint.
What to Do Next
If you suspect that you have been mis-sold GAP insurance, start by gathering all relevant documents. Check the price at which you purchased the policy compared to online alternatives. Once you have gathered this information, proceed directly to Car Care Plan’s complaints page for a free and straightforward process. Remember, handling your complaint directly with Car Care Plan is often more efficient than involving third-party claims management companies.
Sources and References
- Financial Conduct Authority (FCA) reports on GAP insurance mis-selling
- Car Care Plan Ltd official website: https://www.carcareplan.co.uk/complaints