Car dealers reminded of new FCA rules governing GAP sales in force from September 1

Dealers are being reminded of new regulations on the way guaranteed asset protection (GAP) insurance is sold to consumers is due to come into force on September 1.

Sue Robinson, National Franchised Dealers Association director said of the Financial Conduct Authority regulations: “It is important to note that any car sold with GAP that is delivered on or thereafter this date, and has been ordered prior to September 1, will be subject to the new rules.

“Dealers will be required to call customers in by Friday, August 28 and ensure they have the prescribed information about the GAP products they are being offered.”

If dealers have any questions or concerns ahead of these new rules, the NFDA hotline number is 01788 538 303. 

NFDA guidance on prescribed information

Following recent FCA rule changes and the introduction of new remedies for the sale of GAP

there will be a need for dealers from September 1, 2015 to give customers specific

information about the GAP products they are offering.

This information is referred to as ‘prescribed information’ and must be given to the customer in advance of concluding the sale of any GAP insurance.

In addition this information must be given 4 days before concluding the sale (the provision of the prescribed information starts the clock running) unless the customer instigates the sale in which case the sale may be concluded the day after the prescribed information has been provided.

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Car dealers reminded of new FCA rules governing GAP sales in force from September 1
Car dealers reminded of new FCA rules governing GAP sales in force from September 1