Author: Dennis Chapman
Published: April 1, 2014
Reading time: 1 minute
This article is 7 years old.
Read our disclaimer keyboard_arrow_down
This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.
The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.
The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.
Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.
If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.
All characters are fictitious and should not be taken as referring to any person living or dead.
Use of this website shall be considered acceptance of the terms of the disclaimer presented above.
The Financial Conduct Authority (FCA) takes control of Consumer Credit licensing from 1 April 2014.
They are also looking to put restrictions on the selling of ‘Add-On’ Insurance policies as consumers are paying up to £200 million annually for insurance policies that they don’t want, don’t need or forgotten they have.
For example, the FCA wishes to prevent insurance ‘tick boxes’ on websites or the like.
This will include Guaranteed Asset Protection (GAP) Insurances for consumers taking a vehicle on hire purchase, legal protection insurances, emergency call out insurances to a home or broken down car as well as those insurances relating to gadgets, holidays and credit cards.
According to Which? Magazine, GAP insurance purchased from a car dealer could cost up to 4 times as much as buying it from a third party insurer.
The FCA hopes that any clampdown that they introduce will prevent another PPI (Payment Protection Insurance) mis-selling disaster from arising.
We will update of progress after the FCA’s consultation period, relating to their proposals, ends on 8 April.