Mapfre Warranty, a subsidiary of the global Mapfre insurance group, has been found to engage in practices that contributed to widespread mis-selling of GAP insurance. This has led many car owners to pay inflated prices for GAP coverage without being aware of more affordable alternatives available elsewhere.
What is Mapfre Warranty?
Mapfre Warranty provides various financial protection products, including GAP insurance and extended warranties, aimed at protecting consumers against unexpected costs associated with their vehicles. The company operates under the umbrella of Mapfre Asistencia, a leading provider of assistance services in Europe.
How GAP Insurance Mis-selling Works
GAP insurance is designed to cover the difference between what your insurer pays out when a vehicle is written off or stolen and the amount you still owe on the car loan or lease. The Financial Conduct Authority (FCA) investigation revealed that many consumers were sold GAP policies at inflated prices through dealerships, often during the point of sale process. These policies typically cost £300-£500 when purchased from a dealership, whereas similar coverage can be obtained online for just £50-£150.
Dealers frequently used high-pressure tactics and failed to provide consumers with information about cheaper alternatives available outside their dealership. many customers were not given adequate cooling-off periods or clear explanations of their rights, leading to confusion and unfair practices such as the use of DCAs (Discretionary Commission Arrangements) that further inflated costs.
How to Complain About a Mapfre Warranty GAP Policy
If you believe you have been mis-sold a GAP policy by Mapfre Warranty, it is important to act promptly. You can lodge your complaint directly with the company at their dedicated complaints page: https://www.mapfrewarranty.co.uk/complaints. This process is free of charge and does not require the involvement of a
claims management company.
When making your complaint, gather all relevant documentation such as sales agreements, receipts, and any correspondence related to the sale of the GAP policy. Providing detailed evidence will strengthen your case and help Mapfre Warranty understand the nature of your concerns more clearly.
Your Cooling-off Rights
Consumers have a 14-day cooling-off period during which they can cancel their GAP insurance contract without incurring any penalties or fees. To exercise this right, you should send a cancellation notice to Mapfre Warranty either by email or post within 14 days of receiving the policy documentation.
When cancelling, ensure that your notification is clear and concise, specifying the reason for cancellation as being within the cooling-off period. Keep copies of all correspondence for your records in case further action becomes necessary.
What to Do Next
If you decide to proceed with a complaint or cancellation request, start by gathering all relevant documentation including:
- The original sales agreement and receipt.
- Any emails or letters received from Mapfre Warranty concerning the GAP policy.
- Proof of payment for the policy.
Review what you paid for your GAP insurance policy in comparison to the standard market rates. If discrepancies are found, use this information to support your complaint.
Complaining directly to Mapfre Warranty is the most straightforward approach and does not require any additional costs or legal representation. You do not need a claims management company; handling it yourself can save you time and money while ensuring that you receive a fair resolution from the provider.
Sources and References
- Financial Conduct Authority (FCA) investigation into motor finance products: https://www.fca.org.uk/news/final-ruling/motor-finance-products
- Mapfre Warranty complaints page: https://www.mapfrewarranty.co.uk/complaints