In this article we look at further guidance issued by the Office of Fair Trading regarding warranties and complying with the CPRs.
Warranties/Guarantees
There is some confusion in the motor trade about the nature of Warranties in the sense of a written document, usually a booklet, which sets out what you or a third party insurer guarantees to happen in the case of a breakdown and Sale of Goods law. Motor retailers frequently ‘comfort’ themselves in pushing off customer complaints because the warranty has artificially set time periods and claims limits, whereas the customer always has Sale of Goods rights as well requiring the vehicle sold to be of satisfactory quality and fit for its purpose.
Warranties are extremely useful both for the customer who can have confidence in knowing what will happen in the event of a breakdown and for the retailer who can sell their warranties for a good profit. If the motor retailer gives their own warranty it does not need FSA Registration and so is relatively uncomplicated. Even such an own warranty can have an administration service so the customer and the dealer can be assisted in the event of a claim being made.
In the OFT guidance the key features of Warranties/Guarantees are stipulated as:
– what is covered
– claim limit
– terms and conditions
– geographical scope
– claims procedure
– in a written form so that it can be given to the customer
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– who is giving the guarantee
– any alternative warranties available
– a referral service where problems not covered by the warranty can be dealt with.
