Brighthouse 'Optional' Service Cover

[Scattytracy]

Hi everybody

 

I am having some trouble with the lovely brighouse stores! I have been a customer with them for a few years now, but yesterday picked up a Nintendo Wii that I had managed to order from them as I couldn't get one anywhere else. The website price states 6.49 a week, optional service cover 3.50 a week total 9.99 for 52 weeks. I had no intention of taking the 'optional' service cover.

When I took it the girl behind the counter said payment is due now, £11.98!!! I said thats not right, she said it is, it has three games with it. I replied and you've added service cover on! She said you can't take it without service cover, I said its supposed to be optional. I got this.....its at the managers discrection and we had thirty names for fifteen of these Wii's, so if you don't take service cover then you can't have it. Oh and we can't sell them for cash either.

 

This is absolutely disgusting, I have home insurance, and it is also a new product so surely would have a 12 month guarantee.

I felt like leaving it at the shop and telling them to stick it *but* its the one thing my boy wants and we have literally had the year from hell. Lost my dad, I was seriously ill and I just want christmas to be special for the kids, its going to be hard enough without there grandad.

 

Also I've just realised she didn't give me a copy of the agreement I signed.

 

Any help greatly appreciated.

 

Tracy

[Lefty]

Hi Tracy.

You're still in the wrong forum, but maybe a mod will move this to the general CONSUMER issues forum in order that more people may be able to offer advice?

Anyway...

Your story is very typical of Brighthouse.

Firstly, optional service cover IS optional, BUT - Brighthouse don't seem to think so. You're also quite correct about the product being being subject to a 12 month manufacturer's warranty - which is, of course, on TOP of your stautory rights!

Ask yourself: Are you happy paying £622.96 for something you can buy for £250 on the high street? (OK, fair enough, they are a BIT hard to find right now...) In fact, see this thread...

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/120782-brighthouse-conspiracy-surely-not.html

Here's a snippet from my fact sheet/advice sheet about Brighthouse and their additional insurance add ons...

"...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 £600.08) 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.” 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), 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…”

 

3 - 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..."

I assume you have agreed to the service cover (and damage liability cover) and have accepted the product? In which case, follow the advice (above). I have a template letter if you want it.

Please keep us posted how this goes.

Cheers

Lefty

[Scattytracy]

Jeez sorry thought I posted in the right place......poo. Would you believe I'm a forum mod for ivillage! lol:?

 

Anyway no I'm not happy paying, £622.00 at all hence why I'm here, I'm furious tbh.

 

The price I expected to pay was 6.49 x 52 = £337.48. Which isn't anywhere near as bad!

 

Just thought as well, the optional service cover is surely only valid while you are paying for the goods. That means at the end of the 12 months, it wouldn't be worth anything and its got 12 months manufacturers warranty so there is absolutely no point at all in me having it.

 

Please do send me the letter template, I'm not having this off them.

 

thanks

 

Tracy

[Lefty]

 

The website price states 6.49 a week, optional service cover 3.50 a week total 9.99 for 52 weeks. I had no intention of taking the 'optional' service cover.

When I took it the girl behind the counter said payment is due now, £11.98!!! I said thats not right, she said it is, it has three games with it.

 

 

Here's how the £11.98 per week breaks down: (nothing to do with the 3 games. They're part of the package)

 

 

Cash price - £297.70 (which is already £50 more expensive than everyone else!)

 

Credit Deal:

 

52 weekly payments of £6.49 - total £337.48 (at 29.9% APR)

 

"Optional" Service Cover:

 

52 weekly payments of £3.50 - total £182.00

 

"Damage Liability Cover:

 

52 weekly payments of £1.99 - total £103.48

 

 

Total weekly payment - £11.98

 

 

Total amount payable over 52 weeks - £622.96

 

 

 

Here's a couple of interesting points...

 

The total combined cost of the added "insurance" policies (£285.48) is about the same as the "typical" retail price for the product!

 

Even, after having agreed to spend £182.00 on "optional" service cover, if the product were to break down during the 52 weeks of your agreement, Brighthouse would simply get you to contact Nintendo for a repair. (This I know for a FACT!)

 

Even, after having agreed to spend £103.48 on Damage Liability Cover, if the product were to be accidentally damaged, lost or stolen, you would NOT get a replacement, nor would you receive any payout. All that would happen is you would no longer have any "liability" to pay off any remaining instalments on your agreement. Even if this was at the very end of the 52 weeks!

 

You mention that you already have home contents insurance. You should contact your insurer and ask if they provide cover for items in your home which are subject to hire purchase agreements. (Very few will actually specify this.)

 

However, you should be able to list certain items for specific insurance purposes - and you should do this with any items you currently have from Brighthouse. Ensure that full descriptions (with serial numbers if applicable) are listed.

 

A copy of your policy - with your items from Brighthouse specifically listed - will be undeniable proof that you have "suitable" home contents insurance. You can now get the Damage Liability Cover removed along with the "Optional" Service Cover. This will save you a lot of money - money you are currently flushing down the toilet!

 

Use this template letter to instruct Brighthouse to remove both "optional" service cover and damage liability cover. Make sure you post it (recorded delivery) to Brighthouse (Caversham Finance) head office and, ideally, hand deliver a copy to the manager of the store your account(s) are with. It never hurts to also copy the letter to your local Trading Standards.

 

 

 

Item Description/Acount Number(s) XXXXXXXXXXXXXXXX (if you don't have these, simply phone your store and request them)

 

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(s):

 

“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 also give notice that I will no longer require damage liabilty cover in respect of the above agreement(s). After having consulted with my home contents insurance provider, I can confirm the above product(s) are "suitably" insured. (I shall be happy to provide a copy of my insurance policy on request.)

 

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

 

(the next bit is very important)

 

I understand that you may require me to sign a revised agreement(s). I will only do this if all payments made previously on this agreement(s) are reflected in any revised agreement(s). 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(s).

 

Kind Regards

 

Blah Blah

 

 

CC

Caversham Finance (Trading as Brighthouse)

Brighthouse Stores (Branch)

(Your Local) Trading Standards

 

 

 

Hope this all helps. And good luck.

 

 

 

Cheers

Lefty

[Lefty]

Bump Bumpity Bump!

 

Greetings folks!

 

Hopefully, we will have successfully lured you back to this thread via a “new post” notification email!

 

We are trying to collect stories of people's experience with Brighthouse. Eventually we would like to make up a dossier.

 

We would like to know about how Brighthouse staff have treated you, particularly if you have got behind with payments.

 

We would also like to know if you have been pressurised to take out any insurance or optional service cover (OSC).

 

Furthermore we would like to know about problems you have had with goods from this company and how Brighthouse have handled repairs or replacements.

 

Here is the link to the thread to post your stories.

 

 

 

http://www.consumeractiongroup.c o.uk/forum/brighthouse/131337-brighthouse-horror.html

 

 

Please don't add your story to this thread. Use the thread in the link above.

 

 

 

Cheers

Lefty

[alisha2010]

Jeez sorry thought I posted in the right place......poo. Would you believe I'm a forum mod for ivillage! lol:?

 

Anyway no I'm not happy paying, £622.00 at all hence why I'm here, I'm furious tbh.

 

The price I expected to pay was 6.49 x 52 = £337.48. Which isn't anywhere near as bad!

 

Just thought as well, the optional service cover is surely only valid while you are paying for the goods. That means at the end of the 12 months, it wouldn't be worth anything and its got 12 months manufacturers warranty so there is absolutely no point at all in me having it.

 

Please do send me the letter template, I'm not having this off them.

 

thanks

 

Tracy

 

So is it correct that once goods are paid for the optional warranty is no good ?