WMS Group has been identified as one of the firms involved in the widespread mis-selling of GAP insurance, particularly affecting residents in Lancashire. The Financial Conduct Authority (FCA) investigation uncovered that many customers in this region were sold GAP insurance policies at their car dealerships without being informed about potentially cheaper alternatives available online or through other providers.
GAP Insurance Sales in Lancashire
GAP insurance is a form of protection that covers the difference between what your vehicle’s insurer pays out and its outstanding loan balance if it is written off or stolen. In Lancashire, many residents purchased GAP insurance policies from dealerships while acquiring their new cars. These local dealerships often sold GAP insurance as part of the car purchase package, which can be an added convenience for buyers but may come with a significant drawback: higher prices.
The FCA found that in many instances, the GAP insurance policies sold at these dealerships were overpriced compared to what could have been purchased independently. For example, a policy bought through a dealership might cost several hundred pounds more than one obtained online or directly from an insurer. This discrepancy is due to the discretionary commission arrangement (DCA) between the dealers and providers like WMS Group, where incentives are often tied to higher sales prices rather than customer benefit.
Lancashire residents who suspect they were overcharged for GAP insurance can file a complaint directly with WMS Group. The process is straightforward and free of charge; you do not need a claims management company or solicitors to handle your case. To initiate the complaints procedure, visit WMS Group’s official website at https://www.wmsgroup.co.uk/complaints.
WMS Group has established a dedicated section on their site for handling customer complaints, making it easier and more accessible for Lancashire residents to seek redress. This direct approach ensures that your complaint is addressed without unnecessary intermediaries or additional costs.
What Lancashire Residents Should Do Next
The first step in addressing potential mis-selling of GAP insurance is to review the price you paid for your policy. Compare this cost with what similar coverage would have been if purchased online or from another provider outside a dealership setting. If there is a significant difference, it may indicate that you were overcharged.
Next, gather all relevant documents related to your purchase, including receipts, contracts, and any correspondence with the dealership. These will be essential for substantiating your complaint against WMS Group. remember that you have cooling-off rights under consumer protection laws which allow you to cancel a contract within a certain period after signing it if you were pressured into making an immediate decision.
By taking these steps, Lancashire residents can effectively address any concerns they may have regarding the sale of GAP insurance and seek fair treatment from WMS Group without incurring additional costs or delays associated with claims management companies.
Sources and References
- ONS Census 2021: https://www.ons.gov.uk/peoplepopulationandcommunity/populationestimates/datasets/midyeartotalsforenglandandwalesbylocalauthoritydistrict/2021midyearpopulationestimatesforenglandandealshire
- FCA Report on GAP Insurance Mis-selling: https://www.fca.org.uk/publication/firms/gap-insurance.pdf