As the Financial conduct Authority (FCA) consultation period on the selling of GAP insurance comes to a close, service providers Warranty Group has said that the majority of dealers should only need to make minor changes to the way they sell the product, assuming the FCA don’t make any drastic changes.
The FCA launched the consultation period at the end of December, with feedback open until 13 March.
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Among the key changes suggested was a proposed deferral period of between one and four days for consumers choosing the product.
Ciaron Whelan, Warranty Group divisional director said: "Most [dealers] will simply have to change their sales structure in order to meet the FCA’s desire to provide customers with a period of time during which they can consider the merits of purchasing the product.
"Really, the main impact will be that dealers will need to be able to provide clear retrospective evidence that they are adhering to the rules."
In addition, Whelan said: "It is worth underlining that the FCA recognises that GAP is a useful product and that the point of sale is a sensible place to promote it. They are not by any means actively trying to discourage dealers from selling GAP."
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