MG Rover customers who bought their car on a - DOC by ksd16365

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									Media Information – 9th May 2005

Banks should assist MG Rover warranty cash
MG Rover customers who bought their car on a Visa Debit Card are being urged to
write to the Financial Ombudsman in an effort to claw back the cost of their warranty.

Traditionally, consumers are able to claim the cost of the defaulted goods or services
from the bank via a policy called “Charge Back”. Under the scheme, the customer need
only inform the bank and the money for the unused portion of the product is refunded.
The bank then reclaims the money from the retailer with which the transaction was
made.

However, the cost of a three-year manufacturer backed warranty is rolled into the
overall cost of the new car, and therefore not billed as a separate cost of service. As a
result, banks are currently refusing to settle such claims.

Independent automotive warranty provider, Warranty Direct
(www.warrantydirect.co.uk), strongly believes that despite this, customers have a
strong case for a right of reply under the “Charge Back” rules.

“Although it is not a separate entity of the purchase price, the cost of a warranty is an
easily quantifiable figure and so we see no reason why the consumer is being denied
this right of reply,” explained Duncan McClure Fisher of Warranty Direct.

Using insurance industry guidelines, Warranty Direct calculates that the cost of policies
underwritten by MG Rover at 5 percent of the value of the purchase price. So for a
£15,000 car, the warranty can be valued at £750.

Warranty Direct is urging customers who purchased using their Visa Debit Card and
have been unable to exact their rights under Charge Back rules to complain to the
Financial Ombudsman Service. Call 0845 080 1800 or visit www.financial-
ombudsman.org.uk

Warranty Direct offers a 20 percent discount on all MG Rover vehicles under-3 years
old.

ENDS

For further information please contact Andy Francis or Charlotte Latham at
Performance PR on Tel: 0208 946 3456 Mob: 0787 981 3639 email: andy /
charlotte@performancepr.com

								
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