Dealer changed GAP insurance companys w/o my knowledge.

[bumdee19]

Im refinancing my auto loan 1 year after the original purchase from the dealer. I went to the dealer to get a refund of my GAP insurance and handed him my gap coverage form. He said they no longer deal with that company and gave me a number to call to cancel it. I called the GAP company number he gave me , and they had no knowledge or information of a policy with them and to deal with the dealer where I bought the coverage.Looking at the sales contract and my gap coverage addendum, yes indeed the dealer is the person who needs to deal with this. I return to dealer and show him my sales contract with their name as selling the GAP and the GAP provider, and asked why no coverage was found. I was furious knowing that I just refinanced my loan and yes part of the money was the payoff of the $695 gap policy I had bought but no been issued. He went to go "look up something" for 20 mins and came back with a different gap policy that had my signature on it. I DID NOT SIGN THAT GAP POLICY HE HANDED ME. My question is isnt that a breach of contract to switch GAP POLICYs and not tell consumer? And what about the forged signature? Another is he offered to give me 195 for the prorated refund. I Paid 695 and only had it a year. Keep in mind theis is the finance manager im speaking to...sounds like a coverup and a pocketfull of profit.

 

[Michael Wechsler]

I'd first ask the dealer for a copy of the signed agreement. Make it amicable so this way the dealer doesn't assume that you have any hostile motives. It's always easier to move forward with the evidence than trying to obtain it after you suspect some wrongdoing.

1) Do you have a copy of the agreement you signed? If not, why not?
2) Is it your signature? Take a good look.
3) Forgery is a serious matter. Who has the original?

I don't know what to advise since I don't know the specific issues concerning your case and what might be the best route to take regarding GAP providers. But you should take a look at the policy they submitted and get a copy from the other company and determine the differences between the policies and how that pertains to you. I don't know whether it is possible to switch policies and this could be complicated. But once you've determined the options you can then determine your next steps. Regardless of whether you choose to accept the second policy there isn't anything preventing you from reporting a fraud to the appropriate authorities and explaining to them what happened and what you are doing (or had to do) as a result of the fraud. My guess is that, unfortunately, if they are making money off of switching the policies that the second policy (signed) may not be as effective as the first. I would think you should first determine your options, including speaking to the other company. I don't think there is an easy solution since, if they weren't paid money for a policy, they couldn't cover your unless they agreed to do so retroactively. But that would mean you would need to pay them and the money you lost due to fraud and paid to the other company is a civil matter between you and the dealer. This is what I'm seeing but, of course, only a complete and proper review of your case can provide you with the best legal advice on what your true options are.