FSA now sets it’s sites on GAP insurance

Following the long running review of the Credit Protection market, the FSA are now focusing on the sale of GAP insurance.

Taken straight from the FSA website http://www.fsa.gov.uk/smallfirms/your_firm_type/motor/gap.shtml, this is what it says…..

The market for guaranteed asset protection (GAP) insurance is growing. You must be sure that your management controls and training for the selling of GAP insurance products is comprehensive enough to ensure that your customers are treated fairly.

We require those who sell it to know the product’s limitations and applicability to a particular customer’s needs. Your firm’s management must ensure that:

• They are clear about advised and non-advised sales;
• Customers understand the product and any jargon used;
• That it is made clear to customers that GAP insurance only
provides cover for financial loss after any payout from the
customer’s primary comprehensive insurance policy;
• It is made clear to the customer how the insurer calculates the
payout – this includes knowing what optional extras purchased
alongside the vehicle might be excluded and how the provider
interprets Glass’s Guide valuations;
• Customers are made clear that this is an optional purchase. GAP
should not presented as a compulsory feature of a
vehicle finance deal;
• Customers are given a clear outline of how to make a claim;
• Customers are not pressured into a purchase; and
• It is clear customers have a 14-day cooling off period.

ISO 27001:2013