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Need to take car finance to insurance ombudsman? |
Hi, I have an unpleasant situation with a lease purchased car I was paying in to but due to a change in circumsntances, can no longer afford. I therefore wanted to invoke my early termination policy which I had religiously paid in to each month. I now find that the insurers are refusing to pay out as I resigned my job rather than losing it. My employer of course has to report the truth that I did indeed resgin. I feel I am being treated harshly and have to find 拢5,000 to settle the outstanding finance. What good is a policy if it cannot be relied on when I have acted in good faith? Also, I was never sent any Terms & Conditions of the policy so was not aware of any caveats they could use. Do I have a case to force the insurers to pay out? Thanks Steve If you're in the UK... The FSA ( financial services authority ) took over in January 2005. If you purchased the car after that you should have signed to say you accepted\and understood any paperwork you may have signed. There is no Credit Protection Insurance that will cover you for leaving voluntarily however if the loan was a Hire Purchase or Personal Contract plan, ie the loan is secured by the car, you do have rights governed by the Consumer Credit Act (1973 I think). These rights are called your 'Termination Rights' and if you have paid over half of the agreement ( the figure will be exactly specified on your agreement ) you can exercise your rights for any reason what so ever. If none of these apply, I'm afraid you haven't got a prayer of getting out of it. Source(s): Business Manager for Major Car Manufacturer. Probably not. Let me give you a couple of scenarios here. You put fire insurance on your house, and then pour gasoline along the walls and throw a match at it. You tell the insurance what you did, and want them to pay. Will they? You insure your car against theft, and then hire someone, openly, to steal it. You tell the insurance "I had it stolen, please pay me." Will they? Now to your case. You had a policy that would cover you if your conditions changed through no fault of yours, downsizing, laid off, etc. You quit your job and want the insurance to pay. Will they? Without seeing your terms & conditions it is very hard to give information over the net. It is all down to the wording of your policy as to weather you can get out of it. I suggest you go and get some advice from CAB or something simular. You did sign the agreement and you are supposed to read all the small print that goes with it. Can the car be sold to cover the costs or is that with the car going back & 拢5000 still left to pay? no i don't think you have , the loan / finance agreement you signed has this written on it ,.. its hard and I'm a firm believer that you should never take out insurance as its not worth it . talk to the loaners and see if they will give you a few months grace to get back on your feet , they are not ogars and like to help if they can , other than that put the remainder on a 0% balance transfer credit card as this will stop any more interest for 1 year or at least 6 months , you still have to pay it but it would be a shame to loose your car over 5000 拢s . hope this helps you go to citizens advice and they might help you by writing a letter to give you a few months grace , and with the insurance issue . keep your chin up and hope you sort it out . insurance against the unforseen is generally the norm. To take out a policy then create the liability your self is not allowed under most policies. The fact you resigned created the problem, you should have waited to be sacked |
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