National GAPS is an online provider of Guaranteed Asset Protection (GAP) insurance, offering return-to-invoice and vehicle replacement GAP policies. National GAPS Ltd operates the platform, providing consumers with options to protect their investment in case their car is written off or stolen.
What is National GAPS?
National GAPS is a UK-based online service that offers two main types of
GAP insurance: Return-to-Invoice and Vehicle Replacement. These products are designed to bridge the financial gap between what your insurer pays out if your vehicle is declared a total loss and what you still owe on your car finance agreement or lease.
Return-to-Invoice GAP covers the difference between an invoice price paid by a dealer and the amount remaining on any hire purchase, personal contract plan (PCP), or leasing agreement. Vehicle Replacement GAP provides coverage for the cost of replacing your vehicle with one of similar specification if it is declared a total loss.
How GAP Insurance Mis-selling Works
GAP insurance mis-selling often occurs when dealerships sell policies at inflated prices compared to online alternatives. The Financial Conduct Authority (FCA) found that consumers were frequently pressured into buying dealer-installed GAP insurance, which can cost £300-£500, while the same coverage is available online for around £50-£150.
One key factor in mis-selling is the use of a discretionary commission arrangement (DCA). This means dealers receive commissions based on the sale of GAP policies. The high-profit margins associated with these sales can incentivise pressure selling tactics and lack of transparency regarding cheaper alternatives available to consumers online or elsewhere.
Another issue highlighted by the FCA is the absence of proper cooling-off information provided at the point of sale. Consumers are not given clear details about their right to cancel within 14 days for a full refund, nor are they informed that they can shop around and compare prices from different providers before making a decision.
How to Complain About a National GAPS GAP Policy
If you believe you were mis-sold a GAP policy through National GAPS, you should contact them directly via their complaints page at https://www.nationalgaps.co.uk/complaints. This process is free and does not require the involvement of a
claims management company. You do not need to hire an expert or solicitor to handle your complaint; contacting the provider directly is sufficient.
When making a complaint, gather any documentation related to the sale, such as emails, contracts, and payment receipts. Clearly outline why you believe the policy was mis-sold and provide evidence of inflated prices compared to other available options.
Your Cooling-Off Rights
Consumers have a 14-day cooling-off period during which they can cancel their GAP insurance policy for any reason and receive a full refund. To exercise this right, contact National GAPS as soon as possible after purchasing the policy. Provide your name, address, and details of the policy, along with a clear statement that you are exercising your cooling-off rights.
National GAPS should respond promptly to your cancellation request and issue a refund within 14 days if there are no issues or disputes regarding the cancellation.
What to Do Next
If you suspect you were mis-sold GAP insurance from National GAPS, start by gathering all relevant documentation related to the sale. Check what you paid for the policy and compare it with online quotes to see if there is a significant discrepancy in pricing.
Next, review your cooling-off period options carefully. If this window has passed but you still believe the policy was mis-sold, proceed with submitting a formal complaint directly through National GAPS's complaints page. Be thorough in explaining why you feel misled or pressured into purchasing the policy.
Remember, seeking advice from a claims management company is not necessary. You can handle your complaint independently by following these steps and providing clear evidence to support your case.
Sources and References
- Financial Conduct Authority (FCA) Report on GAP Insurance Mis-selling: [Link]
- National GAPS Complaints Page: https://www.nationalgaps.co.uk/complaints