This consumer complaints is to inform car buyers everywhere what a SCAM gap insurance really is. When a sales contract is entered into by you and a car dealership for a new or used vehicle, they are obligated to inform you of your right to purchase a Guaranteed Auto Prodection Plan for an additional fee, of course. Also called deficiency waiver addendum, or debt cancellation agreement.
This contract amends the actual financing contract, in the event of a total loss (you total the car) this protection is supposed to cover or waive a deficiency between between the actual cash value of the car (the amount your insurance says the car is worth) and the actual balance of your loan.
Sounds perfect and i bet everyone who has purchased a new car in the last few years has paid for this security.
Before I state my situation, I realize there are conditions to the agreement, for example payments are current, and full coverage auto insurance policy in place, and the claim is filed timely. And no criminal acts involved. All good!
I bought this gap protection from the dealership when I bought my car. From Beacon Industries WorldWide. A year later my car was totalled. I Attempted to file a claim with beacon. Which took 3 months for them to acknowledge because they never answer there phones.
To make a long story short, they took several months to process the claim.
First refusing it entirely then, only making a partial payment. While they made us jump thru hoops to gather information they already had. While the finance company, Wachcovia, harrassed us daily. Wachcovia was not the least bit helpful or even civilized.
I had to file a compliant with the State of California Department of Insurance to request assistance with the gap claim against Beacon Industries.
This is the perfect RIP-OFF SCAM; The Department of Insurance reveiwed the gap contract I sent them and concluded that it" wasnt a underwritting insurance policy.instead, the coverage was a contract between us and the lender. And Wachcovia Dealer Service's has chosen Beacon Industries Worldwide to administer its claims, but no coverage is provided by Beacon."
The lettered continued with...
"Providers of gap coverage, including lenders, may offer such coverage without it being underwritten by an insurance carrier.in such case, the lender is backing the coverage and is ultimately responsible for paying any covered claims." "However, as mentioned above, lenders may decide to allow a claims administrator (Beacon) to handle claims. Because the gap coverage you purchased is not an underwritten insurance product, the coverage is not under the regulatory jurisduiction of the California Department of insurance."
They continued to say i could contact the BBB, or the Department of consumer affairs, or the Office of the Controller of Currency for help. OCC WAS A COMPLETE WASTE OF TIME, WORTHLESS AGENCY.
For you to get the big picture. I spent 8 months on the phone betwwen Wachovia and Beacon tring to resolve the 5,000 owed. Beacon stalling their claim demanding more documents for Wachovia. While Wachovia said that the
gap claim was not their problem and refused to have any interaction with beacon to speed up the claim process since the delay was information only the bank had access to and they refused to give it to the gap company!!!
Ohh the rage to find out they are the actual carrier of the contract to begin with!!!
We are currently being sued by Wachovia for the remaining balance of 3,000 dollars plus interest and legal fees. Because Beacon only paid a small portion of the claim.
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