GAP, got refunded but ..can i Claim interest on delayed refund

[Surfer01]

When we purchased a new vehicle we took out Gap Insurance only to find it it was totally inadequate. We then notified the insurance company in writing within less than 5 days that we did not want the Gap insurance and wanted a refund. they allow up to 14 days notice. That was in late March 2007. We are still waiting for the refund.

On questioning them about the refund they stated that they have up to 30 days in which to process the refund from receipt of cancellation.

Is this "30 days" a mandatory thing written into consumer law and can I claim interest for the period that they have my money. I need to know any sections of the law that may cover thsi area as I don't see why I have to wait the 30 days as it was included in the loan and I am paying interest on it.

Please advise. Thanks.

[Stillborn Crisps]

I'm not sure on the 30 days notice topic. I'd say 30 days was more likely what they consider a 'reasonable amount of time' and which is written into their terms and conditions. As we've seen with the banks, this often has little basis on actual consumer law.

 

I think all you can do is wait till you get the money back, work out how much interest you paid and then send a letter asking for that amount saying it's unfair that you had to pay it, that it wasn't made clear when you took the insurance out, you would never use them again if this is hw they conduct themselves, etc...

 

At the end of the day I think it's gonna be down to their goodwill/customer service, unless it's for £100+ and then you could try and make a small claim to 'frighten' them in to giving it back.

[Surfer01]

The way I am looking at it is that it is the subject of a credit agreement as it was included in the deal with the HP loan for the car, secondly it also falls under insurance regulations therefore as I am paying 8.5% interest on the loan amount, I should be entitled to that amount of interest back even if it is a few pounds. The amount in question is £399.

[Surfer01]

Has any one taken out GAP insurance? We are interested in the one that pays back to invoice price as it is a second hand vehicle. Is it worth it and has any one used GAP Insurance and been paid out?

[sequenci]

I have it on my HP agreement. I think it's quite important considering my wife's inability to drive well.

[Surfer01]

I was offered to have it included in the HP agreement, but £200 turns into a lot more after interest is added. Most seem to be around £99 for a 4 year GAP insurance plan. Its deciding which one is the most reputable.