“Although the FCA are still intent on the deferred opt-in remedy for the GAP market, it is encouraging to see that they have listened to the NFDA by reducing the length of the pause for 30 days to four”, said Sue Robinson, Director of the National Franchised Dealers Association which represents commercial vehicle and franchised car retailers across the UK and Northern Ireland.
The Financial Conduct Authority has today announced a new consultation on proposals to limit point-of-sale offer of GAP insurance. Feedback on its plans is required by 13 March 2015. The FCA intends for the new rules to come into force in September 2015.
Robinson continued, “The NFDA lobbied the FCA stating that the opt-in would actually be bad for consumers rather than help them, as it risked vehicle buyers leaving dealer forecourts under insured if they were to have an accident in their ‘new’ car.
“The NFDA will be analysing the consultation and responding shortly.”
NOTES TO EDITORS:
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.