Carzam warranty

JohnBrown123

I purchased a car from Carzam in January 2022 and I took out an extended 3-year warranty which cost an additional £600. 

The company is now in administration after going bust, and I am wondering if the warranty is still valid? 

If it isn't, would I be eligible to claim back such costs?

DB1904

JohnBrown123 said:

I purchased a car from Carzam in January 2022 and I took out an extended 3-year warranty which cost an additional £600. 

The company is now in administration after going bust, and I am wondering if the warranty is still valid? 

If it isn't, would I be eligible to claim back such costs?

Who is your warranty through?

If it's with a company in administration then there's no one to pay any claim. Likewise there's no one to claim back any costs from.  

[Deleted User]

Did you pay on credit card? Might be able to do a chargeback or Section 75. Worth asking your bank about it.

JohnBrown123

Thanks for your replies. 
I found out the actual policy is with a separate organisation, but due to Carzam going into administration all warranties have been suspended. 

facilitator999

Dear ……………Carzam Warranty holder,

 

Carzam Limited (‘Carzam’), from whom you purchased your car, was placed into administration on the 1 June 2022 with Adam Stephens and Greg Palfrey of Smith & Williamson LLP appointed as Joint Administrators. A copy of the appointment documentation has been attached for your reference. Please note, Smith & Williamson LLP rebranded to Evelyn Partners on 14 June 2022. Evelyn Partners LLP is the proposed new name of Smith & Williamson LLP, pending confirmation from Companies House.

 

As a result of Carzam’s administration, the remaining period of your Carzam Warranty with linked roadside assistance & breakdown recovery is no longer valid as there are no longer funds available to meet claims as Carzam has ceased trading and is insolvent. Car Care Plan Limited, who had been appointed by Carzam to administer their warranty programme have been instructed to cease authorising the payment of any current or future unauthorised claims, given there are no funds to process claims.

 

If you believe you are owed any monies by Carzam, as a result of your Carzam warranty no longer being in place, you are entitled to submit an unsecured claim in Carzam’s administration by completing and returning the attached proof of debt, with supporting documentation, and return it to the email address below. Please note, it is presently uncertain whether or not there will be any funds available to distribute to unsecured creditors. However, based on current information, it is unlikely that a distribution will be made to unsecured creditors of Carzam.

 

If you have any questions in relation to this development, please contact Carzam’s joint administrators by email at: carzam@evelyn.com.

 

Yours faithfully

Carzam Limited – in Administration

 

facilitator999

I payed £800 as a bank transfer for the warranty.  It just started in March.

Annief64

Carzam didn’t take payments by credit card so we had to pay our £799 3 year warranty in January 22 by bank transfer.
Is the reason that Car Care Plan Ltd are not honouring Carzam warranties because Carzam didn’t pay them the money we had paid them? Otherwise I would have thought they should. Is there any way of finding out?

Ibrahim5

Wow is that just for a warranty? They won't pay out even if they weren't in administration. I have always found modern cars to be very reliable. My 7 year old car that I have had from new has cost £16.10 in unexpected repairs.

facilitator999

So warranty is through a third party yet they are saying we're no longer covered.

Of all the people who paid in installation for their car, does it mean they don't need to pay anymore?