Currys Instant Replacement Product Cover no use?

michaels

I bought an iron from Currys with instant replacement cover for 3 years as an add on.

The prices were as follows:
Original product price £160
Sale price £100
Cover price £30
Discount offered for buying cover £20

So I paid £110 broken down on the receipt as £80 for the product and £30 for the cover. The salesman made it very clear that if the iron broke within 3 years I could come in and they would give me a new one.

Fast forward 2 years and the iron has broken so I went in to claim my instant replacement to be told:
I am only covered up to £80 I paid for the iron, regardless of the fact that this would never actually cover a like for like replacement as even if the item were on sale with the same discount I would still not be covered for the same amount due to the discount given for taking out the insurance in the first place.

In the small print it mentions this limit on value but surely the 'front page' headline of 'Instant Replacement' and
'BENEFITS:
If it breaks we’ll replace it.
No expensive charges for repairs – we’ll just give you a new one.'

And the salesman's assurance that it covered like for like replacement should override this small print?

Thoughts?

dacouch

This is one of the reasons Currys don't offer a proper Insurance product but instead side step the regulations normal insurance products are subject to

The FCA & Ombudsman would be all over this type of miss selling but they have no jurisdiction

dacouch

In a swift move they have in effect got you to pay £10 more than the sale price, the salesman gets a deal for selling Instant Cover. To sweeten it even more for them they have reduced their potential liability if there is a claim from £100 to £80

Bear in mind that Currys basically get all the money (Less the taxes) for the Instant Replacement Cover premium.

That would not be accepted as being fair to the customer for a regulated financial services provider such as an Insurer

michaels

Thanks for the replies, I guess I have paid 20 quid to learn the difference between an insurance policy/warranty and a 'service contract'.

Particularly annoying is the iron had a 2 year manufacturers warranty which ran out 2 weeks ago, when it was already playing up but I didn't bother to think about claiming as the 3 year 'instant replacement' I had paid extra for seemed much more convenient......

dacouch

It's well worth you complaining especially on social media as I think Currys can be pretty good if it's on social media.

If they had not purposely swerved the strict regulation of Insurance, the sales process would be regulated and designed to protect you and ensure you buy a suitable insurance product. It would also have given you a regulated complaint process eg you make an "Official Complaint" they're duty bound to properly investigate it and report back and if you're still not happy you can go to the Ombudsman who is very consumer focused and tends to rule on what's actually fair.

https://www.moneyadviceservice.org.uk/en/articles/extended-warranties-are-they-worth-it

pollypenny

We bought an all-in-one printer, copier and scanner in November. It packed up last week.

We had it replaced with no problem at all.

Esqui

If the same model is available, then they should replace it like-for-like regardless of cost. If not, then it's a replacement up to the original purchase price (this is all in the document). However, common sense would presume that they should just match the £20 discount on the new iron.