Brighthouse "Optional" service cover

[Jaybabes]

Hi all

After a long successful fight with Lloyds TSB I decided to hang my gloves up and have a rest

However now I've come on here (actually looking for something else) and a couple of threads caught my eye about Brighthouse, having read them at length I have to say its given me an appetite to get the gloves on again.

Having been a customer with BH for alot of years I have never once defaulted on a payment so have never been subjected to their exhorbitant penalty charges, although I have every time been forced to take the "optional" service cover.

On looking back at a few of the agreements I've had in the past (well the ones I've been able to lay my hands on) I've calculated that they've had a whopping £1503.64 just in this so called "optional" service cover.

And so my question is this.... Can I claim back the so called "optional" service cover on the agreements that are now paid in full or is it money badly spent never to be recovered??

I'm already preparing my letter to hand in this weekend with regards to cancelling the "optional" service cover I'm paying at present and look forward to saving myself some money in a weeks time

Any help or advice would be greatly appreciated... boy its good to be back

[Jaybabes]

Someone????

Anyone...pleaseeee ?????

[Lefty]

Hi

This is something I have often thought about, and am at the moment in the process of researching!

The key factor on this one is getting Optional Service Cover called by it's real name... Payment Protection Insurance - cuz THAT'S what it really is!

...and we all know what happens if Payment Protection Insurance is mis-sold!!!!!!!


Don't go away, because I reckon we have Brighthouse at centre stage right now.


Cheers
Lefty

PS - Just out of interest, are you also paying out for Damage Liability Insurance as well?

[Jaybabes]

Yeah I am but have to make sure my contents insurance cover HPI goods before doing anything about that..

[alanfromderby]

The difference between this and PPI is that you will generally not have a problem claiming on service cover. Most of the problems with PPI are that the customer did not meet the requirements and could therefore never claim - thus it was unsuitable for purpose and clearly missold.

Proving misrepresentation without misselling would be more difficult in my opinion.

Having said that, if you can prove that the product would be covered by your household insurance at the time, you MIGHT have a starting point.

[Jaybabes]

Went in to pay my account os Saturday as normal and Brighthouse very kindly printed me of a copy of my current agreements as I was unable to find them at home and WOW..... I'll actually be saving £40 per month.

Really can't wait to find out if I can reclaim all the 'optional' service cover I've already paid to them.

:o

[alanfromderby]

That's a hefty price for service cover.

[Jaybabes]

You think thats bad... I worked out that over the years and past agreements I've paid out over £1500 just in service cover alone... and thats not even taking into consideration the amount I've already paid on my current agreements

[andy1205]

hi can anyone tell me if you come across with this if you got no home insurance you got to have the bh service cover

[sequenci]

If they make it a condition of the agreement that you must take out the 'optional' service plan the agreement would have a mis-stated charge for credit and therefore would be unenfrceable. The problem is just proving it.

[Lefty]

Originally Posted by andy1205

hi can anyone tell me if you come across with this if you got no home insurance you got to have the bh service cover

You DO NOT have to take the Brighthouse "Optional" Service Cover (OSC) at all - and, if it's been applied to your agreement already, cancel it NOW!

However, withour proof of suitable home contents insurance, they will insist you take their Damage Liability Cover (DLC).

If you need any further help, get straight back to us.


Cheers
Lefty

[andy1205]

thanks for that ive had loads of things and have been told had to have the service cover im not happy bout this some things ive had cover on it ive paid now so ive paid alot of money out when i didnt have to and got cover on 3 know will be phoning head office

[steven4064]

Another issue with OSC is that it covers against faults/failures of the item bought which is actually covered by the manufacturer's guarantee, at least for the first year (sometimes 2 years). So if they claim it is to cover breakdown during the first year I think you could go for mis-sold on that basis (sequenci?)

After posting this, I decided to investigate a bit further. Firstly, there is nothing about OSC on the website. I rang Customer Servies on the 0800 number on the web and spoke to a sales rep. He knew nothing about OSC and suggested I rang my local store which I did.

They told me that OSC mainly affects returnability - you can return the item (apparently) for any reason and have no liability to pay anything more and it also covers breakdowns once the manufacturer's warranty has expired.

Again, sequenci or others willcorrect me if I'm wrong, but:-

1) returnability - under an HP agreement, once you have paid half the value of the goods, you can return them without further charge. THus OSC is only any value until you have paid half.

2) breakdown - as noted above, manufacturer's warranty covers the goods for the first year (poosibly 2 years). If you take out an extended warranty with any of the other High Street retailers, you only pay after the manufacturer's warranty has expired.

So, in both cases, you are paying for a 'service' during a period when it is not needed beacuse the 'servie' in question is actually provided (free) by law.

[andy1205]

Originally Posted by Lefty

You DO NOT have to take the Brighthouse "Optional" Service Cover (OSC) at all - and, if it's been applied to your agreement already, cancel it NOW!

However, withour proof of suitable home contents insurance, they will insist you take their Damage Liability Cover (DLC).

If you need any further help, get straight back to us.


Cheers
Lefty

what about things i got about a year ago and still paying for can i still cancel them im not happy about this

[andy1205]

what about things i got about a year ago and still paying for can i still cancel them im not happy about this

[Lefty]

Andy,

Brighthouse “Optional” Service Cover agreements are underwritten by Brighthouse parent company, Caversham Finance, and are added to your hire purchase agreement as an additional weekly payment.

You should cancel any “Optional” Service Cover policies you have now! Because:

a) the service cover was most likely applied automatically without giving you the option to choose whether you required it or not, and

b) the service cover is extremely over-priced and represents very poor value for money when compared to a typical manufacturer’s own extended warranty as the following examples show.

Hewlett Packard Extended Warranty - Available upon registering a new Hewlett Packard product or at the end of the manufacturer’s 12 month guarantee period

A single one off payment of £88.99 which provides an additional 2 years of cover to the initial 12 months guarantee period, giving a total of 3 years cover. This cover includes collection and return, all parts and labour and a brand new replacement product if any repair is not completed within 28 days

Caversham Finance (Trading as Brighthouse) “optional” service cover

104 weekly payments of £5.77 (total £600.10) providing service cover for the 2-year duration of the agreement. (As Hewlett Packard guarantees all new products for the first twelve months regardless, this figure only represents one year of actual extended service cover. The cost of this cover is extortionate and, quite simply, cannot be justified.

Of course, “Optional” Service Cover isn’t really service cover at all. As we’ve already established, all new products are subject to a 12 months manufacturer’s warranty, (which, of course, is in addition to your statutory rights – and in the case of hire purchase agreements more specifically THE SUPPLY OF GOODS ACT (IMPLIED TERMS) 1973...) and any volume purchaser like Brighthouse will be able to negotiate massive discounts with outside service agents for any repairs that may occur at other times. No. “Optional” Service Cover is really a thinly disguised payment protection plan that protects the interests of Brighthouse and NOT you!

Brighthouse also appear somewhat confused over the word “optional.” My interpretation (having studied their terms and conditions) is that service cover is an “option” to purchase at the time of the initial agreement and cancellation thereafter will require 7 days notice. However, Brighthouse will say “optional” means the option not to purchase the service cover can only be exercised at the time of the initial agreement and, furthermore, cannot be removed thereafter!

This is a complete lie. Service cover is optional and can be removed. Of course, an attempt remove it will invoke fierce resistance from Brighthouse! Store managers have been briefed by their area managers regarding this “growing problem” as more and more customers are getting wise and seeing through the con that this service cover is! You can thank forums like this one for that!

To remove optional service cover from your agreement(s) (whether new or existing), put a request in writing to your store (and to head office). Once this has been done the store has to comply with your request. Quote your terms and conditions:

“Your Obligations: Optional Service Cover
Section C (b) The service cover premium is renewable each time your regular instalment is due under the agreement. If the premium is not paid Service Cover will lapse.

Section H (3) This policy shall continue in force until you give seven days notice…”

You may also like to quote this extract from a transcript of the BBC 4 programme, “Money Box.”

“BrightHouse is the trading name of a company in Reading, Caversham Finance Limited. It refused requests for an interview, but in a statement said:

STATEMENT: All charges, terms and obligations in every agreement we make with our customers are explained in easily understood language in a personal presentation in store before the agreement is signed. We then test customers on their understanding of the agreement. The optional insurances offered and accepted by this customer were clearly explained and the customer had every opportunity to cancel either at the start of the agreement or at any time during it…”

DAMAGE LIABILITY INSURANCE

Brighthouse “Damage Liability Insurance” agreements are, once again, underwritten by Brighthouse parent company, Caversham Finance, and are added to your hire purchase agreement as yet another additional weekly payment.

This insurance policy (around £250 on a £800 cash price product) is loaded AUTOMATICALLY and will only be removed if you can supply proof of "suitable" home contents insurance. (Brighthouse reserve the right to determine what is and what is not "suitable". In fact, very few home contents policies will specifically include items subject to a hire purchase agreement.)

You are told this insurance covers the product for damage, theft, fire, flood etc. However, unlike "real" home contents insurance it WILL NOT provide you with a replacement product should it become necessary (not even like-for-like) and will only, at best, release you from your agreement with Brighthouse - who, ultimately, benefit from the policy. You end up with NOTHING!!! Furthermore, in the event of a claim, the store manager will have the final say as to whether the policy should apply. He may, for instance, decide the goods where stolen or damaged because you didn’t secure or look after them adequately.

Basically, “Optional Service Cover” (above) and “Damage Liability Cover” is just one big payment protection policy split into two and sold (forced) onto the customer at an EXTORTIONATE cost.

The two insurance policies combined – and based upon a typical £800 cash price product – would eventually cost an extra £850.00


Cheers
Lefty