Third Party Warranty Warning

Edge12345

I have a salutory tale to relate.

I bought a secondhand motorhome a couple of years ago from a local dealer and at the time I was sold a three year extended warranty called Customer Protect run by an outfit called Auto Protect (Administration) Limited. This wasn't a general policy but one specifically sold for a Motorhome.

The Motorhome has just been through a thorough service and MoT, during which I had a Damp Test done that turned up some issues. Now on checking the policy wording it covers "Water ingress through any permanently sealed seam or joint being part of the Motorhome original manufacturer's construction".

I expected to have a battle to get any claim paid as the damp is near the doors so they'd probably argue it's not come in through a sealed seam but past the door seals. However I called the claim number anyway. The number on the policy turned out to be wrong but at least the recorded message gave me the correct number to call (I later found out the call was charged at 8p a minute).

The guy who picked up the phone took the details of the policy then put me on hold for a while before coming back with this absolute gem of an excuse. "This is a Dealer policy and as the Dealer has ceased trading your warranty is void according to our terms and conditions".

Now I read a lot of these documents and there is nothing I can see in the policy terms given to me at the time that clearly states this warranty is dependent on the dealer remaining in business though the rest of the conditions would probably be trotted out like a pack of get out cards if I tried to pursue any claim.

I'm resigned to having to satisfy myself with warning as many people as possible through threads like this against taking out a policy connected to this company or one of it's associated companies. Keep your cash and put it in a savings account to be used towards maintenance and repairs when they are needed.

I have since done some checking with Companies House and a credit reference agency. Sure enough the Dealer has gone down the chute. Auto Protect (Administration) Limited meanwhile is referred to by the credit agency as "financially valueless" though in their case they are part of a group of companies registered in the UK and overseas.

Hopefully none of the above breaches the rules on posting a thread here though it's been hard not to just have a rant.

anewman

I think auto protect has come up before. I am generally against warranties of any kind, it's in their interests to never pay out.

Edge12345

It looks like they have come up before for not paying out but I've never heard of the excuse they gave me before. A bit more research on the internet shows the company shown on my paperwork is not on the FSA register (which I believe they should have been by the time my policy was sold). However, their parent company is on the FSA list.

It also looks like Auto Protect was set up by the former management team of Warranty Holdings after they were "asked to leave" when that company was put into voluntary administration by Ford after financial irregularities were found in the Warranty Holdings books. There's talk of a fraud investigation by the Police at the time of the collapse in 2004.

If I'd known this at the time I would not have bought the warranty but when faced with an offer for one of these policies you don't have the chance to do this sort of research before signing up.

I think your idea of not buying these warranties is good advice but in fairness I do have to say I've extended the manufacturer warranty on my car and never had a problem with making a claim; though I do go to a franchise dealer for all my servicing.

vaio

Sounds like it's worth a punt at your local country court or maybe the FOS

harveybobbles

I can tell you that AutoProtect ARE on the FSA register and our company have used them for almost 15 years.

http://www.autoprotect.net/fsa-compliance/

Kilty_2

harveybobbles wrote: »

I can tell you that AutoProtect ARE on the FSA register and our company have used them for almost 15 years.

http://www.autoprotect.net/fsa-compliance/

To be fair the OP did say that the parent company of AutoProtect (Administration) Limited is on the FSA register.

I'd also avoid these "warranties" personally.

Insured, Dealer Guarantee and administration scheme options

I'd suggest that the "administration scheme option" is the type of warranty the OP has - where AP simply provide the claims handling and the supplying dealer the financial backing. I too have a "warranty" issued by "AutoProtect Administration Limited" on behalf of a large Scottish motor dealer. (it came with my car, I didn't buy it)

Edge12345

Kilty got the reply in before me about the FSA registrations but don't take my word for it. My source of information about the registration is the register on the FSA website not the vendors own marketing.

My information about company ownership comes from a credit reference service that checks the records available at Companies House. The same information is publicly available for a fee from the Companies House website.

Interestingly the Companies House site shows the entities currently carrying the Autoprotect name have not been in existence for 15 years. There is a dissolved company called Autoprotect Limited that started in '97. However, companies restructure all the time for good reasons. To be clear I am not stating there is anything dodgy about how the company is now structured but I think their marketing of their FSA credentials is a little creative.

Getting back to my OP the issue probably comes down to what I was sold and how I was sold it. I thought I was buying a policy independent of the dealer (a bit like buying insurance through a broker; if the broker were to go out of business the insurance remains valid as it's backed by a reputable insurer).

My policy with Autoprotect is not backed up by any insurance (and does not claim to be) but what they've said when I tried to claim (rightly or wrongly) is that the policy paid for by me as an extra was actually for the benefit of the dealer and when the dealer went out of business Autoprotect (Administration)'s liability to me ceased.

I think my biggest problem in pursuing a claim is that the dealer who sold me the vehicle and the policy was a limited company that has gone out of business.

The point of my salutory tale was to act as another warning about these policies and relate that someone may think they have a used vehicle warranty when in reality they don't. The last time anyone wants to find that out is when they are faced with a fat bill for repairs.

vaio

If the policy is clear that the liability stays with the dealer and only the admin is done by an insurance company then I’m inclined to agree that there is not a whole lot you can do.


Don’t suppose there was any credit involved when you purchased it?

Edge12345

Personally I don't think the policy wording is at all clear that the liability remains with the dealer but I also think the cost (financial and time) of trying to pursue a claim would soon outweigh any return.

I'd have to do some serious digging to find out how I paid the Dealer for the policy.

Scarebear

harveybobbles wrote: »

I can tell you that AutoProtect ARE on the FSA register and our company have used them for almost 15 years.

The part of Autoprotect that do car warranties aren't on the FSA register. By providing warranty administration services to car dealers, they avoid the need to be FSA regulated. The car dealer is selling the warranty and carries the burden of FSA regulation despite that fact that Autoprotect maintain full control over policies and claims.

My experience with them puts them in the useless vermin category and I won't be buying their worthless piece of paper again..

reduceditem

anewman wrote: »

i am generally against warranties of any kind, .

........+1