ComplaintsforWise Finance & Insurance

• Initial Complaint

  10/16/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I purchased gap insurance from them and they are refusing to pay the balance of my loan after my insurance paid out.

  

  Business response

  10/17/2023

  We have received your request for assistance dated October 16, 2023.  Per your request, Mr. ****** is dissatisfied with the outcome of his GAP claim. 

  The GAP Addendum is an amendment to the vehicles financing contract executed between Mr. ****** and **** **** **** of Huntington, and its assigned lienholder, Capital One Auto Finance. It is important to note that Financial Gap Administrator, LLC (“FGA”) is not a party to the GAP Addendum, but rather the third-party GAP claims administrator on behalf of **** **** **** of Huntington.  I’ve attached a copy of Mr. ****** contract, noted as Exhibit A.
  

  Generally speaking, the GAP Addendum provides that in the event Mr. ****** vehicle is totaled in an accident or stolen before the loan is paid off (i.e., a “Constructive Total Loss”), that the Dealer/Creditor (here, Capital One Auto Finance) will, subject to certain conditions and exclusions, waive its rights against Mr. ****** to collect the remaining amount due on the financing contract after the primary insurance company, selected by Mr. ******, pays the property damage loss.  The conditions and exclusions are clearly stated in the GAP Addendum. 

  Of particular relevance here, the GAP Addendum states: ““DEFINITIONS – Outstanding Balance means the amount in U.S. currency required to satisfy or payoff the Financial Agreement as of the Date of Loss. The Outstanding Balance shall be determined based only on the amount You originally borrowed to purchase the Vehicle. Amounts added subsequent to the purchase of the Vehicle, such as but not limited to collateral protection insurance, unearned finance charges, rental charges, taxes, Delinquent Payments, past due amounts, late charges, extensions of maturity, salvage, repo expenses, towing and storage are not included….. The Outstanding Balance, as of the Date of Loss, shall be determined by the lower of (1) the Financial Agreement original payment schedule or (2) the Equal Monthly Installment Method, if applicable under the terms of this Contract…” After review of Mr. ****** payment history, there are numerous months where no payment was applied to Mr. ****** account along with a number of late fee assessment’s that are not covered by the GAP Addendum as stated above in the GAP Addendum Definitions section. 
  

  Furthermore, on page two of the GAP Addendum under “DEFINITIONS – Actual Cash Value at the Date of Loss means, (1) the Actual Cash Value established by the Primary Insurance company… Adjustments will be made for prior unrepaired damage, mileage, usage, condition, applicable taxes or fees and documented Vehicle options and accessories purchased at the time the Financial Agreement was executed.  If it is determined that Your Primary Insurance company did not pay a fair Actual Cash Value and we provide You with evidence obtained in our research, You may be required to contact Your Primary Insurance carrier and request a higher payment.”
  Mr. ****** vehicle had an odometer reading of 184,040 miles when the vehicle was deemed a total loss. Based on this information, Progressive, the Primary Insurance Company, obtained the Actual Cash Value of the vehicle using like kind vehicles that were for sale in Mr. ****** the area of residence. Progressive then took a High Mileage Deduction of $3,731.94.  The GAP Addendum doesn’t cover this deduction, however if Mr. ****** feels Progressive was incorrect in this deduction, he should contact them to discuss that issue further. 

  Calculating a GAP Addendum benefit waiver amount is rather straightforward.  Pursuant to the terms and conditions of the GAP Addendum, it starts with the customer’s Outstanding Balance on the date of loss.  An amortization of Mr. ****** loan gives us $10,110.47 as the remaining balance on the loss date. From that, Progressive’s payment of $14,066.26 is deducted as well as $3,731.94 for the High Mileage Deduction, which was taken by Progressive. This resulted in a No GAP situation based on the data and information we’ve been provided by the customer, lender, and the express terms and conditions of the GAP Addendum.

  Our intent is to administer fast, fair claim service in every instance.  After careful review of the GAP claim, there are no errors in the calculations.  However, if Mr. ******** has documentation that the conditioning deduction has changed, or has further questions we’d ask him to please contact our Sr. Financial Claims Manager, ****** ********, at ************, or ******.**********************.
  
  Respectfully,
  ****** ********
  Sr. Financial Claims Manager

• Initial Complaint

  06/10/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Pending GAP Claim on Contract: ***************  / ******* ******  / ***************** Hello, Thank you for the emailed/faxed documents for the above GAP Claim. Your claim has been sent to processing! Please allow 9-14 business days for your claim to be processed. Once processed, you will be mailed a full settlement breakdown explaining the outcome of your claim. Regards, The Claims Team Phone: ***** ******** **** ***** ******** ****** **************************  The company Wise F&I is the GAP company insurance we have paid each month on time. When I called Wise F&I on 06/05/2023 I was informed they have 10 to 20 days to process our claim. However, as noted above the email states 9 to 14 days. This will be our claim passed the time frame of 9 to 14 days on 06/13/2023. Even thought USAA, and the contract warranty company has covered the cost of what they were required to cover. The loan is still open with Vystar credit Union. So we were charged a late that will effect our credit scores. Wise F&I please honor this email and your business contract and process our claim for ****** ****** *******

  

  Business response

  06/12/2023

   We have received the customer comments and understand they are dissatisfied with the GAP claim process and timing at this point. When processing GAP claims it requires a significant amount of paperwork to complete the process. To note, we added the last document needed to process Ms. ******’s GAP Claim in 5/23/2023. On that date, we emailed Ms. ****** and advised of the 9-14 business day time frame needed to complete the process. On Friday 6/9/2023 we processed and completed Ms. ******’s claim.  The check will be placed in the mail on 6/12/2023 and mailed to ****** ****** *****. As you can see, Ms. ******’s GAP claim was processed within 12 business days of the 5/23/2023 processing set date. It is important to note that even with the GAP coverage, it is the customers responsibility to continue to make monthly loan payments until the loan is paid in full. We hope this explanation and follow up satisfies the response needed for the customer complaint. Should you require anything further information or have further questions please contact ****** ********, Sr. Manager, Financial Claims at ************* **** **** ** *****************************.  Thank you

• Initial Complaint

  02/09/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  My vehicle was involved in an accident and declared a total loss. My loan balance was $33,092.36 at the time of the accident. Withing a couple of weeks my insurance paid the ACV of $25,457.86. After making me go through hoops Financial Gap Administrator paid most of the balance except $936.39... becuase it was prior damages, I went back and forth with Hill asking why they are not paying that if the GAP insurance covers the loan not the damages to the vehicle. I was told it was in the contract which I didn't see, he would highlight teh "defenition of Actual Cash Value" I am now left with a balance because the Gap Insurance did not pay it all. I really think the dealerships are misleading when it comes to offering Gap insurance. The dealer that sold me the Gap policy said it would cover the remaining balance of THE LOAN, when what is owed is more than the value and that was not the case in my claim.

  

  Business response

  02/10/2022

  I have received your request for assistance dated February 10, 2022.  It appears our customer, ***** *******, is dissatisfied with the outcome of his GAP claim. 
  Please bear in mind, the GAP Addendum is an amendment to the vehicle financing contract executed between ***** ******* and *** ****** **** ******** ***.  (And its assignee lienholder, ********** ****) It is important to note that Financial Gap Administrator, LLC (“FGA”) is not a party to the GAP Addendum, but rather the third-party GAP claims administrator on behalf of ********** ****.
  Generally speaking, the GAP Addendum provides that in the event of a Constructive Total Loss to the Covered Vehicle, that the Dealer/Creditor (Here, ********** ****) will, subject to certain conditions and exclusions, waive its rights against the contract holder to collect the remaining amount due under a Payable Loss. (Exhibit A)
  Calculating a GAP Addendum benefit waiver amount is rather straightforward.  Pursuant to the terms and conditions of the GAP Addendum, it starts with the customer’s Outstanding Balance on the date of loss. From that, adjustments are made using information collected from the loan contract, selling dealership and primary insurance company.
  Noteworthy to this claim was a settlement deduction taken by Mr. *******’s primary insurance carrier. (Farmer’s Insurance) Farmer’s subtracted $936.39 from their settlement due to “Unrepaired Prior Damage” to the vehicle.  (Exhibit B) This is a deduction made wholly by Farmer’s Insurance, not GAP.  This deduction is not covered by GAP as explained in the definition of Actual Cash Value: “Actual Cash Value at the Date of Loss means, (1) the Actual Cash Value established by the Primary Insurance company.  Adjustments will be made for prior unrepaired damage, mileage, usage, condition, applicable taxes or fees and documented Vehicle options and accessories purchased at the time the Financial Agreement was executed”.  (Exhibit A) However, if Mr. ******* feels the prior damage deduction taken by Farmer’s Insurance was unfair or excessive, he should reach out to his total loss adjuster for further explanation or negotiation.  He could also reach out to myself for further clarification of his GAP benefits at claim time.
  Our intent is to administer fast, fair claim service in every instance.  After careful review of the GAP claim, there are no errors in the calculations and nothing further is owed.  If you have any questions, I am here to review or discuss any of the findings.   Please feel free to contact me at ************ * **** ** ****************************

  Customer response

  02/10/2022

  Complaint: ********
  
  I am rejecting this response because: I purchase GAP insurance to cover the remaining loan balance in case we owe more than what is worth, at least that’s what I was told it would do.. what I don’t understand is why does the GAP insurance care about any unrepaired or wear and tear damages as GAP is not covering Comprehensive or Collision coverage. It is covering the unpaid loan balance. And now because of that unpaid loan balance my credit is being affected. In your response you are referencing the Actual Cash Value and how it is calculated, however, nowhere on the contract or on the conditions say it will not cover the unpaid LOAN balance due to wear and tear or minor dents. I believe I met all your terms and conditions and don’t believe this balance is my responsibility.
  
  Sincerely,
  
  ***** *******

  

  Business response

  02/11/2022

  At claim time, GAP does not pay a remaining loan balance no matter what it is.  The GAP addendum has terms, conditions and exclusions for this exact reason.  In the case of Mr. *******, his vehicle had prior damage which reduced the settlement made by his primary insurance company.  GAP is not a substitute for primary insurance and expressly excludes prior damage as stated in the definition Actual Cash Value.  Prior damage is an issue to be resolved between Mr. ******* and his primary insurance company because the GAP benefit does not include paying for prior damage.      

  Customer response

  02/15/2022

  Complaint: ********
  
  I am rejecting this response because:
  I am not going to go back and forth, you keep directing me to my primary insurance company. I have no complaint about them! As they paid the actual cash value of my truck.. what I don’t understand is that, at the time of purchase I agreed to purchase GAP insurance to cover the balance in the event of a total loss at least that’s what the salesman said. Unfortunately it happened, farmers evaluated my vehicle deducting $936.39 due to prior damages… but that shouldn’t affect the GAP insurance I purchased to cover the loan balance. The GAP insurance is not covering any damages to the vehicle. I read all your exclusions and nowhere on there it says GAP dies not cover any prior damages, can you please show me where it specifically says prior damage is excluded. You keep saying the definition of Actual Cash Value, I understand what actual cash value… but you should pay the GAP between that value and the loan. I feel I was mislead and misinformed when purchasing this GAP insurance. I truly don’t believe I should be responsible for a balance when I had purchased insurance to cover that balance.
  
  
  Sincerely,
  
  ***** *******

• Initial Complaint

  06/09/2021

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  We owned a car that was financed by Ally, with GAP insurance from Wise F&I. The vehicle was totaled on April 10, 2021. We have provided all of the information requested with the exception of the Police Report. The local PD could not provide the documentation, which Wise F&I has been made aware of. Our primary carrier (Geico) paid quickly and was professional in their correspondence. Wise F&I requests documents which we provide then request the same documents again, which we provide again, and again. It is clear to me that they do not intend to pay this claim, and are acting in bad faith. I can provide all of the correspondence, as well as the agreement if this is helpful

  

  Business response

  06/17/2021

  I have received your request for assistance dated June 14, 2021.  Mr. ****** is dissatisfied with the time it has taken to process his GAP claim. 
  Please note the GAP Addendum is an agreement between ******* ****** and H Greg Auto of Orlando, Fl.  It is important to note that Financial Gap Administrator, LLC (“FGA”) is not a party to the GAP Addendum, but rather the third-party GAP claims administrator on behalf of H Greg Auto and their assigned lender, Ally Financial. The GAP Addendum amends the retail installment sales contract and is offered to the customer at the time of vehicle sale.  The charge for the GAP Addendum ($1,495.00) is financed into the customer's loan.  This is part of the vehicle’s financing/sales documentation which is signed by the customer at the time of vehicle purchase and a copy is to be given to the customer by the automotive dealership as part of the vehicle purchase documentation.  All terms and conditions are clearly outlined in the GAP addendum as well as the required documents in the event of a claim.  (Exhibit A)
  Our records indicate that ******* ****** initiated this claim over the phone on April 29, 2021.  On that date, a list describing the documents required to process the claim was emailed and mailed to the customer and his lender.  Unfortunately, the nature of these documents are private and require the customer’s involvement in obtaining.  These documents may come from the customer, their lender, their primary insurance carrier and/or their dealership.  Every time a document is sent to us, we confirm with the customer what was received and what is still needed to process the claim.  Records show many emails were exchanged with Mr. ****** throughout the claim process.  Some of this was due to the fact that documents came in one at a time, thus creating many email strings.  However, the largest issue was centered around the police report.  You will see from the GAP addendum that this is a required document at claim time.  Mr. ****** admitted he was having a very difficult time getting the police report.  We ultimately discovered through the Douglas County Sherriff’s Office that the police report has not been made public yet.  There is an ongoing investigation surrounding this single car loss and the driver being intoxicated at the time.  Illegal activity such as this is expressly excluded in the GAP addendum under EXCLUSIONS.  “No deficiency benefit will be waived under this Contract respecting a Total Loss, (2) resulting from an intentional act, forgery or any criminal or
  
  
  
  
  
  illegal, intentional, willful, reckless, negligent or wanton act (including DWI/DUI) by You, or any authorized driver, whether acting alone or in collusion with others;” As a result, the claim was respectfully denied and a letter was mailed to Mr. ****** dated June 10, 2021. (Exhibit B)
  Our intent is to administer fast, fair claim service in every instance.  I want to be certain you have and understand all the information available on this case.  If you have any questions, I am here to review or discuss any of the findings.   Please feel free to contact me at 800-849-1080 x 3029 or [email protected].
  
  Respectfully,
  
  Keith Wangerin
  Director of Claims
  Phone:  888.427.2037 x3029  

  Customer response

  06/17/2021

  Complaint: ********
  
  I am rejecting this response because they are not acting in good faith. The vehicle was taken without permission, and as their exclusion below references "No deficiency benefit" for any"any authorized driver" - which this person was not. 
  
  No deficiency benefit will be waived under this Contract respecting a Total Loss: (#2) resulting from an intentional act, forgery or any criminal or illegal, intentional, willful, reckless, negligent or wanton act (including DWI/DUI) by You, or any any authorized driver, whether acting alone or in collusion with others

  This is a game they play in order to not pay out a legitimate claim. 

  
  
  Sincerely,
  
  **** ******

  

  Business response

  06/18/2021

  The information Mr. ****** provided throughout the claim did not indicate this was an unauthorized user/stolen vehicle.  The GAP contract is clear in that the police report is required on all thefts.  To be clear, the police report needed is the report of the theft, not the report of the ongoing investigation.  Upon receipt of the police report indicating this was a stolen vehicle, we will be happy to process the claim.   

  Customer response

  06/18/2021

  Complaint: ********
  
  I am rejecting this response because: we were never asked if the driver was authorized to drive the vehicle. This is yet another case of this insurance company stalling a payment and acting in bad faith. 
  

  Just like when they asked for the same documents multiple times, even though we had provided them already. 
  

  They clearly avoid paying claims as a business practice. 
  
  
  Sincerely,
  
  **** ******

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