Car Warranty from Car Giant not paying out.

Amish1

Hi,

So when I brought a car from Car Giant in February 2013 I also took out the extended AA warranty they offered. I was told by the sales man and the finance guy that the warranty covered everything up to £xxxx.xx and that it was valid for 36 Months.

I paid £700 for this warranty which states that "This MBI offers 'Parts and Labour' cover for components such as the Engine, Gearbox and suspension, also for smaller items like window motors."

My issue is that a week ago my car's engine management light came on so I called Mercedes Benz Roadside Assistance as I get my car serviced with Mercedes. They told me that the Throttle Body was at fault and that it would need replacing. So they called up AA Warranty to put it though the warranty but AA Warranty declined to pay for the part and labour.

When I called them up they simply said that your policy does not cover that part. I looked at the policy which can be found here (looks like as a new user I cannot post a link I will post it in the reply)and there is no mention of the Throttle Body being excluded. They told me to take it up with Car Giant as they sold me the policy.

Can anyone advise me on what options I have available here? I have asked Mercedes to carry out the repairs and will pay for it now but would I be able to get Car Giant to refund me the cost of the warranty as they have mis sold it to me?

Any help will be appreciated.

magpiecottage

According to the FCA Register, Car Giant can be complained to by e-mail at adam@cargiant.co.uk

AA Warranty is an Appointed Representative of Motorway Direct PLC who can be complained to at customerservices@motorwaydirect.co.uk

I would put in complaints to both if I were you.

Keep copies of all correspondence.

worried_jim

Warranty companies make profits by paying out as little as they can and have offices full of experts at doing this and fobbing you off. You'd be better off cancelling it, getting as much of your money back as possible (not easy I acknowledge) and then putting the money you would have spent on warranty aside for situations like this.

http://www.honestjohn.co.uk/forum/post/index.htm?t=101285

Also read- https://forums.moneysavingexpert.com/discussion/5141776

Second post today saying car giant warranties are crap.

Also don't have Mercedes carry out the work if you have to pay yourself- very expensive, you need to find a good local garage to do the work for you at a fraction of the cost. Good luck.

magpiecottage

If the OP takes this up with both the seller (Car Giant) and the insurer (Motorway Direct PLC) - and takes them both to FOS if the outcome is unsatisfactory - then they may get a better outcome. It is also free (apart from the cost of the stamp).

However, each firm has eight weeks from receipt of a complaint to respond to it before they can go to FOS.

If the complaint is e-mailed this afternoon or evening then the eight weeks will start tomorrow.

Amish1

magpiecottage wrote: »

If the OP takes this up with both the seller (Car Giant) and the insurer (Motorway Direct PLC) - and takes them both to FOS if the outcome is unsatisfactory - then they may get a better outcome. It is also free (apart from the cost of the stamp).

However, each firm has eight weeks from receipt of a complaint to respond to it before they can go to FOS.

If the complaint is e-mailed this afternoon or evening then the eight weeks will start tomorrow.

First of all thank you both posters for your help. I'm trying to go down the root of trying to get back my money for a worthless warranty as it was mis sold to me. I have a feeling that Car Giant will try and say that the sales person did not say that it covers everything.

I have never done this sort of complaint before, Is there any articles that you can point me to help me draft up a letter to both?

Thanks a lot for your help in advance.

magpiecottage

Without seeing the actual situation, I cannot tell if it is worthless or not.

However, I suggest you go to here and get a hardcopy of the page. I think there may also be a £50 excess.

Do e-mails as it is quicker and you will have a record. If you need to go to FOS you will then have to use snailmail and hardcopies but this is a good start.

Write to MotorwayDirect first:


Subject title: Policy number XXXX - Complaint

Dear sirs

I wish to make a formal complaint against your refusal to honour my claim for a repair to the Throttle Body on my car, registration ####### as diagnosed by Mercedes.

When this policy was sold to me I was told "This MBI offers 'Parts and Labour' cover for components such as the Engine, Gearbox and suspension, also for smaller items like window motors." in the marketing literature. At no point was it drawn to my attention that this component would not be covered.

I would remind you that your regulator, the Financial Conduct Authority now requires you to address my complaint in accordance with its "DISP" rules and to respond to me within eight weeks of receipt of my complaint.


Then to CarGiant

[Vehicle make/model/registration number, policy number] - Complaint

I wish to make a formal complaint about the sale of this policy. I purchased it in good faith from you but unfortunately the car has suffered a failure to its Throttle Body, as diagnosed by Mercedes.

The underwriter for the policy has told me that this component is not covered by the policy. I am therefore dissatisfied that this policy was sold to me by you without making it clear to me that this component would not be covered. Had I been told this, I would have sought alternative more comprehensive cover elsewhere that covered all components.

I understand that your regulator, the Financial Conduct Authority defines any expression of dissatisfaction, such as this one, as a complaint, that you now have eight weeks to respond to it and that you must explain to me how I can take the matter to the Financial Ombudsman Service if I am dissatisfied with that response.

Amish1

magpiecottage wrote: »

Without seeing the actual situation, I cannot tell if it is worthless or not.

However, I suggest you go to here and get a hardcopy of the page.

Sorry do you mean I go to Car Giant and get the paperwork?

Amish1

magpiecottage wrote: »

Without seeing the actual situation, I cannot tell if it is worthless or not.

However, I suggest you go to and get a hardcopy of the page. I think there may also be a £50 excess.

Do e-mails as it is quicker and you will have a record. If you need to go to FOS you will then have to use snailmail and hardcopies but this is a good start.

Write to MotorwayDirect first:


Subject title: Policy number XXXX - Complaint

Dear sirs

I wish to make a formal complaint against your refusal to honour my claim for a repair to the Throttle Body on my car, registration ####### as diagnosed by Mercedes.

When this policy was sold to me I was told "This MBI offers 'Parts and Labour' cover for components such as the Engine, Gearbox and suspension, also for smaller items like window motors." in the marketing literature. At no point was it drawn to my attention that this component would not be covered.

I would remind you that your regulator, the Financial Conduct Authority now requires you to address my complaint in accordance with its "DISP" rules and to respond to me within eight weeks of receipt of my complaint.


Then to CarGiant

[Vehicle make/model/registration number, policy number] - Complaint

I wish to make a formal complaint about the sale of this policy. I purchased it in good faith from you but unfortunately the car has suffered a failure to its Throttle Body, as diagnosed by Mercedes.

The underwriter for the policy has told me that this component is not covered by the policy. I am therefore dissatisfied that this policy was sold to me by you without making it clear to me that this component would not be covered. Had I been told this, I would have sought alternative more comprehensive cover elsewhere that covered all components.

I understand that your regulator, the Financial Conduct Authority defines any expression of dissatisfaction, such as this one, as a complaint, that you now have eight weeks to respond to it and that you must explain to me how I can take the matter to the Financial Ombudsman Service if I am dissatisfied with that response.

Thank you very much for the above. I will email them both tomorrow morning.

magpiecottage

Amish1 wrote: »

Sorry do you mean I go to Car Giant and get the paperwork?

No - just print the page off.

If you go here, you will find a free add on to Firefox which enables you to right click on a tab and the choose to make a pdf copy of that tab. The point is that if you have to go to the Financial Ombudsman Service they will want a copy and it may have changed by then.

Amish1

Thank you magpiecottage, I have emailed both companies and saved a copy of the page as you mentioned. I have also checked my paperwork and there is no mention of the throttle body not being included in the warranty.

Amish1

Hi magpiecottage,

I got the following emails back from Car Giant and AA warranty. It looks like they don't want to do anything. and that this is the final decisions.

From AA Warranty:

Dear Amish1,

Thank you for your recent letter regarding a claim on your vehicle registration XXXX XXX. I understand that you are unhappy to find that your Guarantee has been unable to contribute towards the cost of the repairs on this occasion. Please allow me to clarify our position on this matter:

Your Cargiant Guarantee indemnifies your vehicle against the sudden mechanical failure of specifically listed components: if a part is not listed then it is, by definition, excluded from the cover. The Guarantee Terms and Conditions do not list items that are excluded, rather they list items that are included and anything that is not listed is not covered: the Guarantee book is specifically designed this way so that everyone, whatever their level of technical knowledge, can instantly see if a part is covered or not.

Your repairing garage has advised us that the component that had failed on your vehicle was the throttle body. As this is not a listed item within the documentation it is a non-covered component and the Guarantee holds no liability for this repair. I note that you make reference to a quote from an MBI policy book, however the cover you have is a Guarantee provided by Cargiant and is not an insurance; with this in mind your cover is not a product regulated by the FCA and therefore their guidelines do not apply. I have attached a duplicate copy of your Guarantee document for your records.

Whilst we appreciate it is always unfortunate when costs are incurred on a vehicle we are only able to authorise claims which fall within the scope of the cover. Please accept this as our final decision and, in line with the complaints procedure detailed in your Guarantee booklet, please refer to your selling dealer, Cargiant, should you remain dissatisfied. Furthermore, should you have any queries regarding the sale of your Guarantee these should be addressed with Cargiant themselves as it was they who sold the cover to you directly.

Yours sincerely,
Customer ServiceManager

From Cargaint:

Dear Amish1,

As discussed with you earlier today, we are unable to fulfil any request you
may have due to the following reason(s)

1. The AA Warranty/Guarantee was not miss-sold as you were explained the
content of the "policy summary" at point of sale which you were given before
your collection date.

2. You were given the "policy document" on collection along with your final
invoice, including the terms & conditions of the AA Warranty/Guarantee.

3. You had the opportunity to read through the "policy document" and if you
were not satisfied for any reason there was
a "14 days cooling off period" after purchase in order to get a FULL refund
which has now lapsed.

This is probably not the answer you were looking for, however given the facts
above I hope you can see reason(s) as to why I have reached to my decision.
There is no evidence to suggest you were miss-sold or lead to believe
otherwise from what the AA Warranty/Guarantee actually covers.

Kind Regards

Sales Manager
CarGiant