HP Carcraft - Where Do I Stand?

smj43

I bought a car from Carcraft last year. I got reeled into signing up to the 'Drive Happy' guarantee for 3 years. This provided a warrantee which covers various faults as well as servicing/MOT and breakdown cover for 3 years. The total cost for this was £1600 spread over my 4 year finance package. Now, for those that haven't heard, Carcraft went bust yesterday and it now appears the guarantee and breakdown cover are useless! I still had 2 years of cover left.

I'm not sure where I now stand with this? I have tried calling their helpline which was set up by the administrators but I can't get through. I am paying £35 a month for this guarantee that I can't use. Also, my contract says my creditor is 'All in One Finance' which is owned by Carcraft and is also due to go into administration. However, my payments are taken by another company, Marsh Finance, who don't seem to be connected other than the fact they are also based in Rochdale. It's all very confusing. Can anybody advise?

Generali

Look out the original paperwork and check who the insurance underwriter is. They are now responsible for your claim

2-twisted-right-ears

smj43 - you're not alone. We're in the same position.

Appreciate other people have a dim view of Carcraft but when we purchased a vehicle in November the experience then and since has not lived up to their reputation much better in fact. Clearly didn't help them though.

As I understand it, and I'd welcome any advice or thoughts others have, the 'Drive Happy' package is underwritten by Carcraft themselves - well it would be if it were insurance, but it's not, it's a guarantee.

My limited understanding of the consumer credit act suggests that if the supplier fails to deliver the goods or service which have been paid for through credit (for purchases between £100 and £30,000), then you'd be able to cease paying for those goods or services, or if you had paid in full (e.g. Credit card) you'd get a refund - pro-rated. In essence the lender takes the place of the supplier (in this case Carcraft).

From the financial ombudsman website

Section 75 only helps the consumer where there has been either a breach of contract or a misrepresentation by the supplier of the goods and services. These are legal terms. But for the purpose of section 75 and put very simply:

• A breach of contract is where the supplier fails to do what the contract says it must, either expressly or by implication.
  For example, there is a breach of contract where goods that have been paid for are not supplied at all, or are not up to standard.

Therefore it would make appears to make sense that the element of the agreement relating to the Drive Happy plan would no longer be chargable / payable under the agreement - or am I being to simplistic.

What I am not clear on is whether or not the issue is different if separate credit has been set up to pay for the Drive Happy agreement, or if it was lumped together under a single agreement with the purchase of the vehicle.

Sorry it's a long one.

Foxy-Stoat_3

Dont worry OP, if you had of claimed on the Warranty at any time you would of found out then that it was worthless.

smj43

Actually, I did claim on the guarantee at one point and had the problem fixed no problem. I have also used the RAC cover a couple of times and had a full service and MOT done under it so I wouldn't say it was worthless at all...

smj43

Generali wrote: »

Look out the original paperwork and check who the insurance underwriter is. They are now responsible for your claim

From what I can see it's all Carcraft. The finance itself is even provided by a company owned by carcraft. Everything is in house. I guess it's just a waiting game to see what happens? On the plus side, RAC have confirmed my breakdown cover is still active, though for how long I don't know.

Brock_and_Roll

If the finance is owed to a company owned by Carcraft then this is an asset of the company in administration.

Almost certainly the finance book will be purchased by another finance company who will look to continue to collect the payments. If the finance agreement is separate to any warranties/guarantees then there is no chance of making any set off and it seems likely that borrowers will have to carry on paying in full or risk being defaulted & pursued.

smj43

Brock_and_Roll wrote: »

If the finance is owed to a company owned by Carcraft then this is an asset of the company in administration.

Almost certainly the finance book will be purchased by another finance company who will look to continue to collect the payments. If the finance agreement is separate to any warranties/guarantees then there is no chance of making any set off and it seems likely that borrowers will have to carry on paying in full or risk being defaulted & pursued.

My HP agreement is together with the insurance agreement and are paid in 1 payment to the same company. Does that change anything? Sorry, not very clued up on the law or my rights.

2-twisted-right-ears

Update - as my agreement for the Drive Happy package was financed separately through "Premium Credit" - a quick phone call and the agreement was cancelled without issue.

Excellent service by Premium Credit. Just not sure what happens for those with the plan financed in the same agreement.

Morris0608

My dad bought a car from there about 3 weeks ago, he's called the finance company and everyone else and it doesn't look like anyone's helping. The problem is that there is a fault with the car and he is paying for warranty/service/Mot's that hes not going to get.

What happens if the car brakes? What options do we have?

Help pls ;(

Jon_B_2

Morris0608 wrote: »

What happens if the car brakes?

It gradually slows and comes to a stop.