Help with Brighthouse please

[gawatson10]

ive been with brighouse for years but can u tell me do i have to take the osc and the insurance one out as these seem to put the payments right up yet ive never claimed..
i do not have house insurance though..

cheers everyone
daz

[rory32]

Hi gawatson10 and welcome to CAG. I have moved your post to a thread of it's own as your question is more likely to be answered that way and the sticky you posted on is for peoples experiences with Brighthouse only.

[Lefty]

Hi gawatson10. And welcome to CAG.

Below is an extract from our BrightHouse fact sheet - you'll find the full version HERE

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“...Optional Service Cover” insurance policies are underwritten by BrightHouse themselves (through parent company Caversham Finance), and added to your hire purchase agreement as an additional weekly/monthly payment.

“…Our optional service cover gives you the added benefit of a full service package and the ability to return your product at any time, without penalty...”

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

a) You can return the goods, if necessary, without penalty if you have paid more than half the agreement total. You do not need an expensive insurance policy in order to do this.

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

c) the service cover is extremely over-priced (and totally unnecessary as you already have statutory rights), plus it represents very poor value for money when compared to a typical manufacturer’s own extended warranty as the example below shows…


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 £600.00) 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 – more about that later…) 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”. According to their own terms and conditions, “optional” service cover is an “option” to purchase at the time of the initial agreement, and cancellation thereafter will require 7 days notice. However, BrightHouse staff will tell you that “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 total nonsense. Service cover is optional and can be removed. Of course, any attempt to remove it will invoke fierce resistance from BrightHouse! Local store managers, under pressure from their area managers, will have stringent sales targets to meet, and the revenue generated by “Optional” Service Cover policies is vital to them.

You should also be aware that BrightHouse has the right to terminate your "Optional" Service Cover policy with just 7 days notice to you. They have been known to apply this clause if an item is deemed “beyond economic repair” leaving you considerably out of pocket (and left with nothing) when this happens towards the end of an agreement. In contrast, a typical manufacturer’s own extended warranty would, at least, result in a refund of the premium paid.

To remove optional service cover from your agreement(s), 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. Use a letter similar to this one:

Item Description/Account Number XXXXXXXXXXXXXXXX

Dear Sir

I am writing to give the required 7 days notice, as detailed in my agreement(s) that I wish to cancel all "optional" service cover on the above product(s). To simplify matters, I have today (date) presented a copy of this letter to the store manager of Brighthouse (Branch), which has been duly acknowledged, so 7 days notice shall commence at the date of this letter.

As stated in my agreement:

“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…”

I shall, therefore, be making my next payment on (day) at Brighthouse (branch). This payment will not include "optional" service cover.

I understand that I may be required to sign a revised agreement. I will only do this on the firm understanding that all payments made previously on this agreement are reflected in any revised agreement. I do not waive any of my rights under the Consumer Credit Act 1974 regarding, in particular, “early settlement” and “repossession” as set out in section J of the original agreement.

Kind Regards
You



Hope this helps


Cheers
Lefty

[Fluffy Viper]

Thought I would put this question on here as its relevant, if a moderator wishes to move it thats ok. I gave the letter in the post above to Brighthouse Blackburn last week (06/06/200 and sent a copy recorded delivery to head office and a copy to Blackburn Trading Standards. I went in to the Accrington branch yesterday (14/06/200 where i usually pay and guess what, still wanted the full ammount. They phoned Blackburn and the man there said they hadn't taken it off yet as they required me to sign new agreements. I am going in tomorrow (16/01/0 to do this but I want to know, if I have given them their seven days notice is that my only legal requirement. Do I now not have to pay the OSC even though I have not signed new agreements (I will be getting them to sign a letter to protect my "early settlement" and "repossesion" rights). Also the manager said that i would now have to pay 12 days payments as no contract exists between us now, something to do with the payment time running from saturday to saturday and me signing new agreements on a monday. They wont be getting that, I will be paying as normal.

[Lefty]

Originally Posted by Fluffy Viper

Thought I would put this question on here as its relevant, if a moderator wishes to move it thats ok. I gave the letter in the post above to Brighthouse Blackburn last week (06/06/200 and sent a copy recorded delivery to head office and a copy to Blackburn Trading Standards. I went in to the Accrington branch yesterday (14/06/200 where i usually pay and guess what, still wanted the full ammount. They phoned Blackburn and the man there said they hadn't taken it off yet as they required me to sign new agreements. I am going in tomorrow (16/01/0 to do this but I want to know, if I have given them their seven days notice is that my only legal requirement. Do I now not have to pay the OSC even though I have not signed new agreements (I will be getting them to sign a letter to protect my "early settlement" and "repossesion" rights). Also the manager said that i would now have to pay 12 days payments as no contract exists between us now, something to do with the payment time running from saturday to saturday and me signing new agreements on a monday. They wont be getting that, I will be paying as normal.

Hi.

I have answered this post on your new thread!

Cheers
Lefty