3RD Party Warranty companies, why are they still allowed to operate and rip people off?

Pompeylad2k

I purchased a Skoda Octavia last year from a used car garage and thought it would be a good idea to take out the 3-year warranty thinking I had peace of mind from any major problems occurring with my 5-year-old car for that time. Clearly, I was wrong to think this. When I told relatives I took out this warranty, they were very negative about them and said they aren't worth the paper they are written on. Although the warranty paperwork clearly states they cover the Turbocharger of a vehicle when it came down to actually paying for a replacement the claim was rejected on the basis it was down to wear and tear. The car had covered 50k and is 5 years old, so it's not like it had worked for that long, and looking on other forums it seems like this part is a known issue! I have just put a claim through the motor Ombusmen to get involved. What I don't understand though is how are these dodgy warranty companies allowed to keep going? They clearly have no intent on paying out ever so why are they not stopping them trading? 

JJ_Egan

( claim was rejected on the basis it was down to wear and tear.)

Usually in the terms and conditions you sign up to .

Grey_Critic

Not all rip-off merchants but it is sensible to have a read through them before buying. Wear and tear are a regular excuse but my favourite has to be **External Oil Leaks are not covered** A leak is from the inside and the external part is the indication there is a leak.

deanos

the only ones that are any good are manufacturer ones imo

Ibrahim5

They seem to be worse than useless because the customer gets caught between the dealer and the warranty company. Can you refuse the warranty and get a discount when buying a used car? Just use CRA 2015? You are better without it.