Dynamo GAP - RPI Increase
Discussion
fourstardan said:
I bought a 4 year GAP policy with Dynamo on a car last year.
It has just been increased due to inflation/rpi increases and they've taken money off my account.
How is this legal? I've paid for a 4 year term.
From their website. It has just been increased due to inflation/rpi increases and they've taken money off my account.
How is this legal? I've paid for a 4 year term.
You pay for this insurance as a one-off payment by credit or debit card at the beginning of the period of cover.
Afaik every gap policy I have seen is just that - one payment upfront for the full term.
alscar said:
fourstardan said:
I bought a 4 year GAP policy with Dynamo on a car last year.
It has just been increased due to inflation/rpi increases and they've taken money off my account.
How is this legal? I've paid for a 4 year term.
From their website. It has just been increased due to inflation/rpi increases and they've taken money off my account.
How is this legal? I've paid for a 4 year term.
You pay for this insurance as a one-off payment by credit or debit card at the beginning of the period of cover.
Afaik every gap policy I have seen is just that - one payment upfront for the full term.
Rivenink said:
Check the terms and conditions of the insurance that you were sent when you took it out. If there is no clause in there regarding additional payments related to inflation, then you should call them and ask for the money to be refunded.
It does state they increase on the terms quoted, however I've probably been led astray on this.https://dynamocover.com/prices/
If I'm paying for a renewal of a policy e.g. Breakdown cover that would incur overheads I would get this, however I'm not as I have already paid for my premium for the full term at the price quoted.
I've sent an email to the complaints department to ask this very question.
If they don't I'll be sending it onto the Fo.
Look at their Truspilot reviews.
https://uk.trustpilot.com/review/dynamocover.com?u...
Pages and pages of 1* reviews, all with a similar tale.
https://uk.trustpilot.com/review/dynamocover.com?u...
Pages and pages of 1* reviews, all with a similar tale.
Ham_and_Jam said:
Look at their Truspilot reviews.
https://uk.trustpilot.com/review/dynamocover.com?u...
Pages and pages of 1* reviews, all with a similar tale.
I always do as I moved over from ALA, I think this lot are a new kid on the block so we are all finding out what's going on.https://uk.trustpilot.com/review/dynamocover.com?u...
Pages and pages of 1* reviews, all with a similar tale.
fourstardan said:
Rivenink said:
Check the terms and conditions of the insurance that you were sent when you took it out. If there is no clause in there regarding additional payments related to inflation, then you should call them and ask for the money to be refunded.
It does state they increase on the terms quoted, however I've probably been led astray on this.https://dynamocover.com/prices/
If I'm paying for a renewal of a policy e.g. Breakdown cover that would incur overheads I would get this, however I'm not as I have already paid for my premium for the full term at the price quoted.
I've sent an email to the complaints department to ask this very question.
If they don't I'll be sending it onto the Fo.
The IPIDs clearly state it is a one off payment at the beginning of the policy.
They really should refund the payment they took.
fourstardan said:
It does state they increase on the terms quoted, however I've probably been led astray on this.
https://dynamocover.com/prices/
If I'm paying for a renewal of a policy e.g. Breakdown cover that would incur overheads I would get this, however I'm not as I have already paid for my premium for the full term at the price quoted.
I've sent an email to the complaints department to ask this very question.
If they don't I'll be sending it onto the Fo.
Did they charge you a fee when you took out the policy and did you have any other paperwork to suggest you were paying a fee separately from the gap premium itself ?https://dynamocover.com/prices/
If I'm paying for a renewal of a policy e.g. Breakdown cover that would incur overheads I would get this, however I'm not as I have already paid for my premium for the full term at the price quoted.
I've sent an email to the complaints department to ask this very question.
If they don't I'll be sending it onto the Fo.
Rivenink said:
Having taken a quick look at the documents for GAP policies they have on their website, it doesn't seem like any of them allow for additonal payments to be taken.
The IPIDs clearly state it is a one off payment at the beginning of the policy.
They really should refund the payment they took.
They are claiming thisThe IPIDs clearly state it is a one off payment at the beginning of the policy.
They really should refund the payment they took.
Dynamo said:
I Paid in full so why do I get charged an RPI Adjustment?
When you purchase a policy from Dynamo Cover you are signing up to a minimum 12 month contract. Under this contract we are legally obliged to provide you with the services detailed in your contract for this period, as a result because these costs of facilitation can alter over the 12 months this is why they are subject to RPI Adjustment.
You may have elected to pay in full upfront, instead of signing to a credit agreement to break your payment into 12 monthly payments (which would incur more fees/interest) but they are both treated the same way.
They apply an increase of RPI + 3.8% and if RPI is nil or negative then they still apply the 3.8% uplift so anyone taking out a policy will have to pay more than thought. RPI is 13.4% so they are applying a 17.2% uplift to everyone irrespective of them paying upfront!When you purchase a policy from Dynamo Cover you are signing up to a minimum 12 month contract. Under this contract we are legally obliged to provide you with the services detailed in your contract for this period, as a result because these costs of facilitation can alter over the 12 months this is why they are subject to RPI Adjustment.
You may have elected to pay in full upfront, instead of signing to a credit agreement to break your payment into 12 monthly payments (which would incur more fees/interest) but they are both treated the same way.
Dynamo are a Broker not an Insurer though so its if they charged a fee initially is where they are trying to mug people especially if that fee was payable each year for the ( in this case ) 4 year policy.
Given those reviews though and with other much more decent companies to purchase from I'm a little surprised that the OP went with them in the first place !
If their fees are " hidden " within the Gap insurance premium and not declared then that's something different altogether.
Given those reviews though and with other much more decent companies to purchase from I'm a little surprised that the OP went with them in the first place !
If their fees are " hidden " within the Gap insurance premium and not declared then that's something different altogether.
alscar said:
Dynamo are a Broker not an Insurer though so its if they charged a fee initially is where they are trying to mug people especially if that fee was payable each year for the ( in this case ) 4 year policy.
Given those reviews though and with other much more decent companies to purchase from I'm a little surprised that the OP went with them in the first place !
If their fees are " hidden " within the Gap insurance premium and not declared then that's something different altogether.
Anyone talking about reviews please read my comment, in 2022 the reviews were fine (and inflation wasn't high).Given those reviews though and with other much more decent companies to purchase from I'm a little surprised that the OP went with them in the first place !
If their fees are " hidden " within the Gap insurance premium and not declared then that's something different altogether.
Thanks for pointing out but I didn't realise they was a broker, so I wonder if they renew my four year policy each year over the term without me knowing.
They did email me the breakdown of cost increase.
1. It says "RPI + Inflation" which is 17%
2. I have a four year contract yet they have charged me 17% of the four year policy price.
What happens if RPI and Inflation increase next year??!?!
It's all rather smelly and disgusting so I've lodged my complaint and will pursue with the Ombudsman.
I wonder how rises like this get accounted for as well?
Edited by fourstardan on Tuesday 7th March 14:52
fourstardan said:
Anyone talking about reviews please read my comment, in 2022 the reviews were fine (and inflation wasn't high).
Thanks for pointing out but I didn't realise they was a broker, so I wonder if they renew my four year policy each year over the term without me knowing.
They did email me the breakdown of cost increase.
1. It says "RPI + Inflation" which is 17%
2. I have a four year contract yet they have charged me 17% of the four year policy price.
What happens if RPI and Inflation increase next year??!?!
It's all rather smelly and disgusting so I've lodged my complaint and will pursue with the Ombudsman.
I wonder how rises like this get accounted for as well?
Reviews prior to 2022 were equally awful -have a look at some of the comments made in 2019- actually don't as you won't feel any better.Thanks for pointing out but I didn't realise they was a broker, so I wonder if they renew my four year policy each year over the term without me knowing.
They did email me the breakdown of cost increase.
1. It says "RPI + Inflation" which is 17%
2. I have a four year contract yet they have charged me 17% of the four year policy price.
What happens if RPI and Inflation increase next year??!?!
It's all rather smelly and disgusting so I've lodged my complaint and will pursue with the Ombudsman.
I wonder how rises like this get accounted for as well?
Edited by fourstardan on Tuesday 7th March 14:52
I don't know what your policy says in terms of the policy period but it should say what the term is and so I very much doubt Dynamo are physically doing a thing once you actually took it out last year.In fact it sounds to me from your comments that you took out a 4 year policy and they have simply charged a fee - probably at the time and you either didn't realize or it was hidden - and now a year later they are pretending to renew something and charge you but it doesn't need renewing !
The policy presumably gives you the name of the Insurance company and I'd be minded to also speak with them.
The Insurance Ombudsman I think will only get involved once the company has debated and concluded with you .
I assume you have officially emailed or whatever their complaints department at Dynamo ?
As you say though and from your comments , something is very definitely amiss here.
At the very least they have broken transparency rules and they are certainly are not adhering to TCF.
All of which rather goes against their style of marketing on their website.
fourstardan said:
It does state they increase on the terms quoted, however I've probably been led astray on this.
https://dynamocover.com/prices/
If I'm paying for a renewal of a policy e.g. Breakdown cover that would incur overheads I would get this, however I'm not as I have already paid for my premium for the full term at the price quoted.
I've sent an email to the complaints department to ask this very question.
If they don't I'll be sending it onto the Fo.
Within the https://dynamocover.com/prices/https://dynamocover.com/prices/
If I'm paying for a renewal of a policy e.g. Breakdown cover that would incur overheads I would get this, however I'm not as I have already paid for my premium for the full term at the price quoted.
I've sent an email to the complaints department to ask this very question.
If they don't I'll be sending it onto the Fo.
I Paid in full so why do I get charged an RPI Adjustment?
When you purchase a policy from Dynamo Cover you are signing up to a minimum 12 month contract. Under this contract we are legally obliged to provide you with the services detailed in your contract for this period, as a result because these costs of facilitation can alter over the 12 months this is why they are subject to RPI Adjustment.
You may have elected to pay in full upfront, instead of signing to a credit agreement to break your payment into 12 monthly payments (which would incur more fees/interest) but they are both treated the same way.
T6 vanman said:
Within the https://dynamocover.com/prices/
I Paid in full so why do I get charged an RPI Adjustment?
When you purchase a policy from Dynamo Cover you are signing up to a minimum 12 month contract. Under this contract we are legally obliged to provide you with the services detailed in your contract for this period, as a result because these costs of facilitation can alter over the 12 months this is why they are subject to RPI Adjustment.
You may have elected to pay in full upfront, instead of signing to a credit agreement to break your payment into 12 monthly payments (which would incur more fees/interest) but they are both treated the same way.
Your first bit in bold says 'paid in full'. I would suggest a good lawyer can argue this means no further amounts can be charged.I Paid in full so why do I get charged an RPI Adjustment?
When you purchase a policy from Dynamo Cover you are signing up to a minimum 12 month contract. Under this contract we are legally obliged to provide you with the services detailed in your contract for this period, as a result because these costs of facilitation can alter over the 12 months this is why they are subject to RPI Adjustment.
You may have elected to pay in full upfront, instead of signing to a credit agreement to break your payment into 12 monthly payments (which would incur more fees/interest) but they are both treated the same way.
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