KNOWHOW won't pay out on damaged laptop

Rich_the_owl

Hi all, recently I dropped my laptop down the stairs and have also stood on the laptop in a separate incident after. It was the initial dropping down the stairs that stopped the laptop from working so I took it to the Curry's stores bought it from (7 years ago) who sent it off for repair to KNOWHOW who I have been paying a monthly amount for 7 years to insure the laptop.

Around a week later I got a call from KNOWHOW saying they would not be repairing or replacing my laptop as the damage was 'unreported.' So as they advised I went back down to my Curry's store who advised me to write a detailed letter to KNOWHOW over what happened. I did this and it took about 3 weeks later for them to send me a letter saying they would still not be repairing/replacing my laptop as the damage I reported is apparently 'inconsistent to what the engineer observed.'

To say I'm angry is an understatement. I've been paying a monthly price for 7 years to insure the laptop for accidental damage and when I need to use it they try to claim I'm not telling the truth and refuse to repair/replace it. Can anyone advise on what my next steps should be? Where do I stand legally on this? I was sold with the assumption that all accidental damage was included. Nobody ever mentioned to me that claims can be challenge if they damage is excessive. The claims department conveniently do not have a number or email address; I was told the only way to contact them was to write another letter but I think they will just fob me off again. Does anyone have any advice? Would be much appreciated, thanks!

huckster

A 7 year old Laptop is pretty worthless anyway, as they are really only built to last 4 or 5 years max. Parts start to fail and performance is poor compared to newer models.

BUT, you have been paying Currys Insurance for 7 years and should expect to have the Insurance honoured. If you want to take this forward with Currys, you will need to pay for your own independent report into the condition of the laptop and if helpful be prepared to take Currys to court. Your major trouble, is that a court may only award you a very small sum, as they will take into account the age/value of the laptop. The amount would be less than the report and court costs.

Pursuing Currys in this case is not an economically viable option.

Rich_the_owl

Hi huckster,

Thanks for the advice much appreciated. My understanding of what I should get if the insurance was honoured would be a voucher for the amount of a laptop in store which had the same spec as mine or above, so would still be a fairly significant amount. Also, would it be KNOWHOW rather than Curry's I'd be taking to court?

Is there no other independent body that can review this case? It seems terrible to me that they can just say I'm lying and my only option would be to take them to court which they know would cost more than the money I would receive.

huckster

The crux of your position, whether you go to court or use the FOS, if that option is available, is both would require an independent assessors report. If you want to prove your claim, you need something to help.

Check whether you can use the FOS, after a complaint to the Knowhow people. I can remember something saying these shop purchase policies could be looked at by the FOS. Find out whether this is the case.

I suspect that companies who offer these policies on older electronic items, will regularly refuse claims. They must see loads of laptop 'dropped down the stairs' claims. If it had been on a newer laptop, it might not have raised suspicion.

Nb. Any court or FOS action would be against whoever provides the Knowhow cover.

Your choice really. At the end of the process, if you won, you might only get a cheap replacement, based on it being equivalent in spec to your old one. But court or FOS would take months.

Keep_pedalling

I would imagine they would use this clause to get out of providing you with any form of restitution

"Repair or replacement of the product which has been neglected, abused, misused, or damaged intentionally. You must take reasonable care of the product"

I would say dropping it down the stairs then subsequently standing on it, could be seen as not taking reasonable care of the product.

beckyd13

I would ask Currys/Knowhow for more detail about why they are refusing to honour their contractual obligations. Are they seeking to invoke the clause quoted above and if so on what basis? Will they release a copy of the engineer's report? Make sure you compare their reasoning against the agreement you signed (and any variations to the terms and conditions that they have notified you of in the last 7 years) - companies are good at mistakenly applying the current T&C to old contracts, for example.

You'll then know what you're up against and can shape your complaint letter or legal proceedings accordingly. If they don't respond, it looks bad that they haven't provided further information and you can refer to this in Court documents...

If you're considering legal proceedings, you're not limited to damages. Specific Performance is a remedy for breach of contract whereby if the Court finds that Knowhow is in breach of the contract, they can be ordered to carry out their obligations i.e. to issue a replacement voucher code to a specified value (such as the original purchase prices of your laptop) under the terms of the agreement. Alternatively, damages are intended to put you back in the position you would have been in without the breach of contract, so you could measure your claim for damages with reference to a similar spec laptop now. If it was a mid-range laptop when you bought it, look for a mid-range one now from the same maker, but limited to the amount that you paid for your laptop as the Knowhow agreement is capped at this (check your contract to see if it said anything different 7 years ago...). The Court could always knock this down so you need to be prepared for that, or you could offer to settle with Knowhow for a lower figure to achieve a swift resolution after you've started Court proceedings (check out Part 36 offers).

In addition to damages or specific performance, if you are successful you are entitled to claim your reasonable costs from the losing party. This would include the cost of the report and any court fees. However, that's only if you are successful and the Court has discretion to make whatever costs orders it thinks fit, including costs orders against you.

According to the knowhow website, you would name the Defendant as "DSG Retail Ltd (504877)" (Court rules state that you have to include the company number)

I'm not sure if you'd be able to go to the Financial Ombudsman about this - I've read elsewhere that the Knowhow agreement is a service agreement, not an insurance contract and as such isn't regulated or overseen by the FOS. Perhaps someone else in the know could confirm this.

Do you have accidental damage cover on your house insurance that you could use?

societys_child

I would say dropping it down the stairs then subsequently standing on it, could be seen as not taking reasonable care of the product.

Hmm, two very unfortunate incidents.

dacouch

huckster wrote: »

The crux of your position, whether you go to court or use the FOS, if that option is available, is both would require an independent assessors report. If you want to prove your claim, you need something to help.

Check whether you can use the FOS, after a complaint to the Knowhow people. I can remember something saying these shop purchase policies could be looked at by the FOS. Find out whether this is the case.

I suspect that companies who offer these policies on older electronic items, will regularly refuse claims. They must see loads of laptop 'dropped down the stairs' claims. If it had been on a newer laptop, it might not have raised suspicion.

Nb. Any court or FOS action would be against whoever provides the Knowhow cover.

Your choice really. At the end of the process, if you won, you might only get a cheap replacement, based on it being equivalent in spec to your old one. But court or FOS would take months.

Currys Know How is not an Insurance product, it side steps the regulations by using a complex system and calling itself a "Service Plan".

There is no recourse to the Ombudsman with Currys.

They are well known for buckling when contacted via social media eg Twitter or Facebook

huckster

dacouch wrote: »

Currys Know How is not an Insurance product, it side steps the regulations by using a complex system and calling itself a "Service Plan".

There is no recourse to the Ombudsman with Currys.

They are well known for buckling when contacted via social media eg Twitter or Facebook

Thanks. I thought that the FOS were considering these 'service' plans, as to whether really they are an Insurance. Perhaps this has not happened and it needs legislation, before FCA/FOS can be involved.

Rich_the_owl

Hi all, just wanted to say thank you to all of those who have provided the
helpful advice to me in this thread. I decided to tweet KNOWHOW given what
someone in the thread had mentioned about them buckling under pressure on
Social Media. They have told me that I will have to pay £10 to see the
Engineer's report; I told them that is not acceptable and they gave me an
email address to contact them on progress an appeal. I've requested more
details of why the claim was rejected and for a copy of the Engineer's
report in the letter so will take it from there.

Thanks again for all the advice, hopefully won't need to post in here if I
get a successful outcome but not holding my breath too much