Extended warranties are a relatively new sales opportunity for the retailers and have not been without their fair share of bad press. Both the OFT and the Competition Commission have investigated claims of unfair terms, mis-selling and excessive profiteering. So the question is, are they worth it?
Your basic warranty
Let’s first define what a warranty is and what it does. When you buy an electrical item you will often be given a retailer or manufacturer’s guarantee or warranty for a period of time, usually 12 months, and up to 5 years for more expensive products. It is a myth that certain electrical products automatically come with a warranty – there is no legal obligation for shops or suppliers to provide them (although once they have, they are legally binding) – it is simply to enhance consumer confidence in their product and promote sales. It also provides the manufacturer with valuable marketing information which is why you will need to register your product by filling in a card with your personal and purchase details in order to activate it.
Warranties are basically a commitment to repair or replace defective parts within a specified time frame – usually 12 months for small electrical items. When this time is up, consumers are commonly told by shops that their responsibility is at an end and there is nothing further they can do. This is often not the case. The important point about warranties is that they should never seek to replace or take precedence over your statutory rights under the Sale of Goods Act, and even after your warranty has run out, you will still be protected by these rights which can run for up to 6 years after purchase.
Your statutory rights
In the absence of any warranty and as we have pointed out several times, the retailer is automatically liable for any faults which develop within the first 6 months. After this time, you may have to prove that the any fault was not down to misuse or wear and tear, although factors such as price paid, model specification, the length of time you have had it (and the length of time it should reasonably last) etc will also be taken into account. Therefore if you buy something which should last around 7 years but has broken down after a year or even after 3 years, the supplier has a duty provide a satisfactory repair – or if this cannot be done, a replacement. If neither a repair or a replacement can be agreed on then the shop can give you vouchers towards the cost of an alternative replacement or a partial refund. Whatever happens, whenever it happens, and whatever remedy you choose, your first and only port of call should be the retailer.
Misinformation
The following statements are frequently made by retailers and are untrue:
- You can only return items if you have a valid, registered warranty
- No longer our responsibility, you’ll have to contact the manufacturer
- Your 12 month warranty has run out, nothing further we can do.
- We’ll have to send it off to the manufacturer, there will be a charge for repairs / parts / shipping etc.
Your extended warranty
An extended warranty becomes valid after the basic one 1 or 2 year manufacturer or retailer’s warranty has run out and will then run for a further 2 or 3 years. It is the same as the basic warranty but will often cover damage in event of accident or misuse also. Some even cover loss or theft. In this sense it is basically an insurance policy for which you will either pay a one-off premium or a monthly fee. But are they worth it?
Having read the above you would probably wonder why you should be paying for an insurance policy you effectively already have under the Sale of Goods. The only difference with extended warranties is that they provide additional cover for damage cause by misuse and possibly loss / theft. However, in general, the feeling is that for retailers are tending to ‘hide behind’ warranties and using them to mislead consumers about their statutory rights. Moreover, the unfair way in which they are sold has also been under the spotlight. What consumers need to understand is that for the retailers, the sale of extended warranties is often more lucrative than the sale itself. So this, combined with large commissions was making for aggressive sales tactics just before the item was due to be paid for. For this reason, regulations have now been introduced to safeguard consumers against intimidation and provide them with all the knowledge they need to make an informed decision.
New regulations for extended warranties
There is now a requirement on retailers to ensure the following:
- The price of the extended warranty is displayed alongside the electrical item instore or on press adverts.
- The provision of information regarding the cooling off period of 45 days, cancellation rights, whether you would be protected in the event the warranty provider goes out of business, and whether the policy terminates if you make a claim.
- The provision of information regarding consumers’ existing statutory rights
- The fact that extended warranties are also available as ‘stand alone’ products from alternative sources.
The above information must also be presented in plain English – not legal jargon.
Worth it?
So, should you opt for an extended warranty? All we can say is consider it in the context of your existing statutory rights and read the terms and conditions very carefully – for example, do they offer ‘new for old’ or just a repair? Under no circumstances be bullied into accepting one at the point of sale and parting with even more cash than you’d like. If you decide you do want an extended warranty – shop around from the dozens of available providers, and remember your 45 day cooling off period.
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Hi I brought a tumble dryer its just over a year old and it over heats very fast but the gartee has ran out by a month is there anything I can do?
I bought a beko tumble dryer from Argos I live alone and have very little washing I bought it at the end of 2012 the motor has broken do I have any rights as I feel a tumble dryer that was hardly used shouldn’t break it even still looks brand new
Hi,
I purchased a Philips 3D smart TV on 26/09/13 from Dempseys of Portstewart in Northern Ireland, the TV cost £799 and came with a 60 month warranty. The TV started to show coloured lines which would disappear when the TV was switched off and on again, it then wouldn’t switch on at all. I contacted Dempseys who gave me the phone number of the manufacturer, when I contacted them I had been put through to Poland and once they established the problem and agreed to pick the TV up to get repaired I thought nothing more off it until I received a text message from them a short time after to say the case had been closed and was I happy with the service. I then went to Dempsys shop where I was told to ring them again as they couldn’t do it on my behalf, after ringing them again they agreed to come and collect the TV the following week from a company in Craigavon, the TV was repaired and I got it back after 3 weeks. On the return of the TV I was left to set it up myself and before I could test it the man was away. A few days after getting the TV back I started to notice more problems with it, when I turn it on there is sound but no picture. I have to turn it off at the mains a few times in order to get it to work.
I would like to know what my right are and if its the responsibility of Depmsys to get the TV sorted or do I have to go through the manufacturer and be without a TV again?
Thank you.
Peter
Dear sir / madam,
I purchased a Philips 3D smart TV on 26/09/13 from Dempseys of Portstewart in Northern Ireland, the TV cost £799 and came with a 60 month warranty. The TV started to show coloured lines which would disappear when the TV was switched off and on again, it then wouldn’t switch on at all. I contacted Dempseys who gave me the phone number of the manufacturer, when I contacted them I had been put through to Poland and once they established the problem and agreed to pick the TV up to get repaired I thought nothing more off it until I received a text message from them a short time after to say the case had been closed and was I happy with the service. I then went to Dempsys shop where I was told to ring them again as they couldn’t do it on my behalf, after ringing them again they agreed to come and collect the TV the following week from a company in Craigavon, the TV was repaired and I got it back after 3 weeks. On the return of the TV I was left to set it up myself and before I could test it the man was away. A few days after getting the TV back I started to notice more problems with it, when I turn it on there is sound but no picture. I have to turn it off at the mains a few times in order to get it to work.
I would like to know what my right are and if its the responsibility of Depmsys to get the TV sorted or do I have to go through the manufacturer and be without a TV again?
Thank you.
Peter Herald.
I bought a cooker 7 years ago and an extended warranty.. Iv paid 4 times the value of the cooker with no claim.. What can I do to get something back from this??
I bought a tablet from tesco in oct 2014 it has stopped working this last week. Tesco told me it is out of warranty and cant do nothing but compensate me with £35. Is the right
I purchased a cooker and had it installed into my static caravan which is our holiday home, for only us (not sub-let) the cooker had a serious oven fault, I asked the manufacturer to repair it under the warranty, however they are saying that as its not at my main address it is a commercial property, once I argued this point, they agreed that holiday homes are covered, however the repair agents have been told by their manufacturing area manager that it is not covered by the warranty, who is responsible for the repair as it is only 6 months old ad only used once
Wife was offered extende warranty on Bosch washing machine which she accepted and purchased but we do not have Bosch machine and already have policy on the actual Aristotle one we own. Company are now refusing to refund payment and say a cancellation charge will apply. This was done same day. Can they charge fee?
Have just had someone look at my 31/2 year old fridge freezer we have extend warranty which we pay by dd have been told it is beyond repair and that they will arrange delivery of a new one but need a payment of £83 to cover outstanding dd’s and delivery the policy has been running since dec 14 so is this right
We bought a tv with 5 years warranty 20 months later faulty tv from Sharp first they offered £450 Then I complained and then offered £901 And we got to return Tv went back to Downtown were we bought TV they offering a new TV but with only 1 year warranty can they do this we paid £1299 because of 5 year warranty. But if we get new tv from them surely they sell all Tv with 5 years warranty so if they replace it with a new tv we should get 5 years warranty ?? How do we stand ?
I have purchased an Soves oven
N from J Lewis yesterday with One year warranty plus entrance year provided by J Lewis. Oven Fitted yesterday, card asking to register warranty also saying I will get 5 years free parts. Rang to register warranty and was told it will only cover manufacturing faults , so if we accidentally break something we will have to pay call out fee which is £140. Though we have free parts for 5 years any replacement will be
£140.
They are offering a discounted price of £45 for three years if I take this and anything goes wrong they will do it for free. This I know sounds very reasonable but to me it is like blackmail, if we don,t take it out the cost is £140.
I asked about having any part delivered if there was a problem,but this is not allowed.We are not allowed to get our own very capable highly qualified plumber, it has To be £140 or the extra payment of £45 for three years. As the cooker will have. A warranty for two of these , I think this is unacceptable and a rip off. I am pensioner and this would be a lot of money to me.
Hope you can send me feedback
Regards
Margaret Taylor Mrs
.
Bought iPad 4 November 2013. Within the first year it had been returned and repaired at least twice. It was insured and sine November 2014 it has been returned and repaired at least another twice. It’s now gone back again (always the same problem). Can I demand a replacement?
i purchased a number of high end kitchen accessories in May 2012. I purchased them from a company recommended by a kitchen fitting firm who were fitting a new kitchen in my home. The appliance company advised that I would get an extended 5 year warranty if I purchased 4 or more appliances from them which I eventually did.
The dishwasher (Kupperbusch) was sold as top grade / quality but was always problematic. Over my period of ownership it broke down on a number of occasions, leaving me with no machine. Last November 2015 it started blowing all the electricity in my house – this resulted in a number of major attempts to repair it with limited success. This problem again arose at Easter 2016 but despite many attempts to repair when it was returned in MArch 2016 it continued to blow all my electrics. I had finally lost faith in the machine and felt I had been most reasonable – the dishwasher was blowing all my household electrics and I now considered it unreliable and dangerous.
I advised the appliance company that I wished a replacement machine – they now advise that the German supplier (Kuppersbusch) state they did not receive my warranty registration and will not replace.
The extended warranty is still on offer, I never received any paperwork when purchasing but still have all my original invoices detailing the date purchased , price and products purchased. They clearly show I purchased the correct number of items and the date shows I am still within the 5 year warranty – what is their issue.
The appliance company made numerous attempts to repair my machine no later than Christmas 2015 and Easter 2016 but when the dishwasher was finally certified dead by their engineers they have welched on the warranty.
My question is – can they do this?
I’ve lost my reseat for my Samson tv it had a 5 year warranty I got it from comit does anyone no if there is anything I can do Im lost as just stopped have no pic but have sound cost a lot of money single dad do I have any rights
Bought a TV on line from the Co-op it cost more than £1500, the TV developed a fault after 11 months and still under warranty, I contacted the Co-op and asked them if I can have the TV replaced they told me I must go to the manufacturer and deal with it myself, and they refused to exchange, replace or refund and I have no rights to do so, is it true what the Co-op is telling me, and do I have any consumer protection to have it replaced been only 11 months since I bought it and still under one year warranty . Please let me know
Thank you
Hi, I purchased a hotpoint dishwasher four & half years ago with a five year parts guarantee. The dishwasher has now stopped working.Two Engineers have been out to look at it on three different occasions and replaced numerous different parts.They then decided that it cannot be repaired.The company have offered me back half my call out fee (£54.98) and the option of me purchasing another
bought a used car from evans halshaw and have since sold the car and they are now saying we have to continue paying for the warranty as we cant cancel it only can do transfer of ownership but the car was traded in at garage…we took out 24 months interest free credit with santander to pay evans halshaw so basically they have our money and we are left paying another 18 months for a car we no longer own…what are my rights?
Bought a Russell Hobbs tumble dryer from Argos less than 2yrs ago. No longer works apparently there’s a problem with the door. Russell Hobbs offer a 2 yr warranty with all white goods but only if you register it. This is not what it says on their website however. They state that if you have proof of purchase the item will be repaired free of charge. So they are lying; not a company to be trusted at all. They told us they’ll send the replacement part as a Goodwill gesture free of charge! How can you trust a company that it clearly incapable of doing as they say they will?
I brought a washer in May 2014 but had a new pump in May this year while under warrenty its now broke again! Same problem I would expect a good washer not to need 2 pumps in 2 years there getting back to me but want me pay I was under impression the part had 12 months on it as that’s what I was told
I got a laptop from brighthouse refubished the warranty ran out in 2013 and I got it from brighthouse in 2015 i paid up in full in 2016 I did report the caseing was comeing away from the screen before I payed up for the laptop and now the laptop will not do nothing key will not work and I can’t get it to a factory reset as there no recovery media on the laptop I have payed they will not do nothing what is my rights