Optional service cover question

[nickismee80]

Hi.. something has been bothering me for a while now, and im not sure if brighthouse have got one over me..

In the past we have had items from BH.. due to getting married soon, the £20 a week we were paying to BH would come in handy so we took the items back using the optional service cover.

A couple of months later family mambers offered to pay towards the wedding, as finances were not so tight we decided to carry on our agreement on a TV we had previously had (using the 12 month continue where you left off) plus a sofa.

When we were going through the weekly payment, we said we didn't want the service cover as we could afford the payments, we don't need the cover.. we were told we HAD to take it as we had previously used the cover to return items.

Im not sure if this is correct.. We took OCS the first time as we were told we had to if we wanted the items.. which i beleive was missold.

We do not pay damage liability cover as we have home contents insurance,

We are paying over £6 for the OSC a week..

Can anyone advise me if i am in the right to ask for this to be cancelled and to reclaim what OSC we have already paid

Many thanks

Nicki

[Lefty]

Yes. You are being lied to...

The previous agreement you had (with optional service cover) gave you the opportunity to "start where you left off" on a new agreement. You have now taken out a new agreement and the payments made on your previous agreement have been taken in account.

This does NOT alter the fact that optional service cover is OPTIONAL.

“…BrightHouse offers Optional Service Cover. This offers a convenient and effective means of getting goods, which customers use on a daily basis, repaired quickly and to a reliable standard. In addition it provides “No Quibble Returns” and “Start Where You Left Off” services that help customers with payment problems. These measures assist customers and make our service cover unique.

This cover is optional, and the customer has the right to cancel it at any time.”

(David Harwood - BrightHouse Company Secretary)

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

The removal of Optional Service Cover from your account will usually result in a new agreement having to be signed. This is because the weekly premium for it is incorporated into the weekly payment schedule.

If you do have to sign a new agreement, and because you risk losing all the rights you have accrued regarding repossession and early settlement, insist the store manager (and you) sign a covering letter (similar to the template letter below), and ensure it is stapled to your new agreement along with a copy of your ORIGINAL agreement.

Original agreement number XXXXXXXXXXXXXXXX

New Agreement number XXXXXXXXXXXXXXXX

Date

Updated agreement to reflect Removal of OSC

IMPORTANT Payments made previously on this agreement (XX payments to date representing XX of the total amount payable) are to be reflected, and form part of, any revised agreement.

All rights under the Consumer Credit Act 1974 regarding, in particular, “early settlement” and “repossession” as set out in section J of the original agreement remain intact and continue uninterrupted into any revised agreement.

Signed - YOU
(Print name)

Signed - Store Manager (for and on behalf of Caversham Finance trading as BrightHouse)
(print name)





Hope this helps!


Cheers
Lefty

[nickismee80]

Thank you for replying lefty.. is there any chance of reclaiming the OSC we have paid?? as we were missold, is it the same as PPI???

We did use the OSC the first time to take the items back, i think that if we could reclaim, they could use that as an argument.

I have used the template and will be handing in a letter to the local branch this week, also sending a letter to head office.. recorded delivery.

[Lefty]

Originally Posted by nickismee80

Thank you for replying lefty.. is there any chance of reclaiming the OSC we have paid?? as we were missold, is it the same as PPI???

We did use the OSC the first time to take the items back, i think that if we could reclaim, they could use that as an argument.

I have used the template and will be handing in a letter to the local branch this week, also sending a letter to head office.. recorded delivery.

Yeah, I don't think you have much of a case for reclaiming monies paid for OSC on the original agreement seeing as you did (of sorts) "make a claim" on it.

However, I DO think it's worth a shot at trying to reclaim what you have paid on your CURRENT (new) agreement.

And yes, I DO think OSC is simply a thinly disguised PPI plan, but as it is NOT actually insurance (it's an "un-insured" service contract) you'd have difficulty claiming mis-selling in the traditional sense.

The whole OSC, DLC and HP thing is very complicated with BrightHouse - deliberately so. An OSC contract (on its own) gives you no rights of return, or "pick up where you left off" and is not mentioned ANYWHERE within its terms and conditions. These points are only referred to in their regular HIRE PURCHASE agreement, and are conditional upon having purchased OSC.


Cheers
Lefty

[nickismee80]

Thanks again Lefty..

If i take the letter for cancelling my OSC, what happens after?? Do i hang around to see if everything is ok and i sign a new agreement (taking a copy of the template you have suggested with me), or just leave and see what happens?? I just want to make sure i do things right, so there are no come backs.

Also.. how can i claim the moneys back, as you have mentioned, its not like PPI where i can claim miss selling, what route should i go??

[Lefty]

Originally Posted by nickismee80

Thanks again Lefty..

If i take the letter for cancelling my OSC, what happens after?? Do i hang around to see if everything is ok and i sign a new agreement (taking a copy of the template you have suggested with me), or just leave and see what happens?? I just want to make sure i do things right, so there are no come backs.

Also.. how can i claim the moneys back, as you have mentioned, its not like PPI where i can claim miss selling, what route should i go??

The terms and conditions in the agreement you signed (check 'em out HERE) simply say you should give 7 days notice - technically, it doesn't even need to be in writing (written notice isn't stipulated, just notice.) However, common sense should prevail, and I absolutely recommend you should give 7 days WRITTEN notice.

Also, even though I recommend you copy the letter (via recorded delivery) to head office, this - again - is just to confirm your request and to avoid any ambiguity. Head office aren't really interested because each BrightHouse branch is its own little financial empire, and the branch manager underwrites all the deals, OSC cover etc from within his own annual budget.

Present the letter by hand to the branch manager when you next make a payment. Your 7 days notice starts from then, which means you WILL have to pay the OSC one last time. You have already mentioned in the letter (assuming you used my template) that you are aware that a new agreement MAY have to be signed, so you don't need to even discuss this with him at that time. Just wait and see what he says.

The FOLLOWING week simply make your payment with OSC deducted.

You have then complied 100% with your terms and conditions. If BrightHouse then require you to sign a new agreement, make sure you apply the second template letter.

As for claiming back previous OSC payments, possibly mis-sold, I can only suggest talking to Trading Standards with a view to making a claim in the small claim court.

This (to my knowledge) has not yet been done, so we'd be really greatful if you would keep CAG well and truly informed.


Cheers
Lefty

[nickismee80]

Bit of an update..

I took the letter in to my local branch yesterday and handed it to the manager..

Today i received a phone call off the manager from the branch we took out the agreements with (when we took out the agreements this was the closest store, they have since opened a store where i live). He basically said, no problems with stopping the OSC on 2 of the items we have, but since we have used the OSC for the tv in the past (we went for the start where you left off) that this had to have the OSC remained on..

he said that any payments which have been made will go on to the new agreements and to pop in to the store to sign some new agreements..

so thats step one sorted, i just need to find out if he is pulling a fast one with the OSC on the TV, out of all 3 items we have from BH, it has got the highest amount on OSC.

Many thanks to you Lefty for helping me out, without your encouragment i wouldn't have had the bottle to do this.

[Lefty]

Originally Posted by nickismee80

Bit of an update..

Originally Posted by nickismee80

I took the letter in to my local branch yesterday and handed it to the manager..

Today i received a phone call off the manager from the branch we took out the agreements with (when we took out the agreements this was the closest store, they have since opened a store where i live). He basically said, no problems with stopping the OSC on 2 of the items we have, but since we have used the OSC for the tv in the past (we went for the start where you left off) that this had to have the OSC remained on..

NO IT DOESN'T!

"...Optional Service Cover is OPTIONAL, and the customer has the RIGHT to cancel it at any time..."

he said that any payments which have been made will go on to the new agreements and to pop in to the store to sign some new agreements..

It's not so much the payments that have been made, it's your accrued "protected" rights you should be more concerned about. Payments will be reflected - yes - by a lower "cash price" on the new agreements, but you absolutely MUST insist the second template letter I gave you is signed and incorporated into your new agreements.

so thats step one sorted, i just need to find out if he is pulling a fast one with the OSC on the TV, out of all 3 items we have from BH, it has got the highest amount on OSC.

Yes he is...

"...Optional Service Cover is OPTIONAL, and the customer has the RIGHT to cancel it at any time..."

Many thanks to you Lefty for helping me out, without your encouragment i wouldn't have had the bottle to do this.

My pleasure!

Cheers
Lefty

[nickismee80]

Ok.. im being told one thing by the manager and another off here.. im totally confused.

I don't know how to argue my case with the manager, as he had point blank said, no i cannot take the OSC off the tv as i have used the OSC in the past with the tv.. as i have used it, i need to carry on paying it. I see where you are comming from Lefty with the OSC is "optional", but i don't see me winning this..

[un happy customer]

hi just let you know i took the advice off lefty and i now have had my osc removed on my brighthouse goods,belive me its worth it in the end

[Lefty]

It's really simple, look at it like this...

Your terms and conditions state in black and white that optional service cover is OPTIONAL and can be cancelled AT ANY TIME.

It is a WEEKLY contract and nothing more.

Regardless of whether you had a repair, a replacement OR took advantage of "start where you left off" it is YOUR CHOICE whether you want to take advantage of it.

If you don't think it's a good deal and worth the money you're paying for it, simply cancel it.

As I said in our BrightHouse factsheet, the store will offer FIERCE RESISTANCE when it comes to removal of OSC.

BrightHouse generate more income from selling OSC (and charging late payment fees on accounts) than they do on selling goods. Fact.

Stand your ground. Don't back down.


Cheers
Lefty

[DCA-KING]

If the manager would do it tell him you sending a copie of the letter to cavisham finance the head company and a copy to TS he will soon change his mind
my case is still on going with OFT been 5 months now
Regards DK

[nickismee80]

I have sent a copy to head office (the one in caversham) but i didnt think about TS.. thank you..

[Lefty]

Originally Posted by nickismee80

Hi.. something has been bothering me for a while now, and im not sure if brighthouse have got one over me..

Originally Posted by nickismee80

In the past we have had items from BH.. due to getting married soon, the £20 a week we were paying to BH would come in handy so we took the items back using the optional service cover.

A couple of months later family mambers offered to pay towards the wedding, as finances were not so tight we decided to carry on our agreement on a TV we had previously had (using the 12 month continue where you left off) plus a sofa.

When we were going through the weekly payment, we said we didn't want the service cover as we could afford the payments, we don't need the cover.. we were told we HAD to take it as we had previously used the cover to return items.

Im not sure if this is correct.. We took OCS the first time as we were told we had to if we wanted the items.. which i beleive was missold.

We do not pay damage liability cover as we have home contents insurance,

We are paying over £6 for the OSC a week..

Can anyone advise me if i am in the right to ask for this to be cancelled and to reclaim what OSC we have already paid

Many thanks

Nicki

Please remember to keep us posted on this case.


Cheers
Lefty

[nickismee80]

I rang the care line yesterday to enquire about the OSC on the tv.. and was told the same thing, as we have used the OSC in the past with the tv, we need to have it now.

I have to pop in on Saturday to sign the new contract for the sofa (decided to take the psp back while the OSC was still valid), but i don't think i have the "bottle" to argue my case.. i dont like confrontational scenario's.. I think i might go staraight to TS and see what they say.

[Lefty]

Ask BrightHouse to put what they have told you into writing. Ask them to specifically indentify the section in the agreement you signed that refers to this "rule".

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