Problems with dodgy stufff and OSC

[keri6]

hi

I have been a bh customer for nearly 4yrs now every item i have ever purchaced from them has always had a problem and everytime they have taken a item away for repair has always come back as it went with the same fault only it takes them several mths to which i am still paying for the items whilst they have got them sum people may say its my own fault and should of kicked them to the kirb when i first started having problems but being a single parent to 5 children money is tight and im not able to buy things we need outright to me they were a god send short i am in 56 pounds a wk in debt to them and what for dodgy stuff:mad: i really dont no what to do:confused:also on every aggreement i have even took out i have been forced to take out the osc when questioned why call it optional if you have to have it they jus say its a must have? also if a item was to break and would come back as bor^d (beond repair) then i was told the only thing i could do was take ot a new aggrementfor a new1 which i would then lose all the moneys paid on the old 1 ? advice needed please i have added up the amount of osc i will have paid n was shocked to c that it is 9000 plus

Edited October 4, 2008 by keri6

[Lefty]

hi

I have been a bh customer for nearly 4yrs now every item i have ever purchaced from them has always had a problem and everytime they have taken a item away for repair has always come back as it went with the same fault only it takes them several mths to which i am still paying for the items whilst they have got them sum people may say its my own fault and should of kicked them to the kirb when i first started having problems but being a single parent to 5 children money is tight and im not able to buy things we need outright to me they were a god send short i am in 56 pounds a wk in debt to them and what for dodgy stuff:mad: i really dont no what to do:confused:also on every aggreement i have even took out i have been forced to take out the osc when questioned why call it optional if you have to have it they jus say its a must have? also if a item was to break and would come back as bor^d (beond repair) then i was told the only thing i could do was take ot a new aggrementfor a new1 which i would then lose all the moneys paid on the old 1 ? advice needed please i have added up the amount of osc i will have paid n was shocked to c that it is 9000 plus

 

Hello Keri

 

I'm really sorry your post has taken a while to be answered, I almost missed it!

 

You really need to take a look at what items you currently have agreements on, and make a few hard decisions as to whether you really need them or not. You are quite clearly heading for financial problems.

 

BrightHouse have an amazing talent of brainwashing their customers into thinking their BrightHouse account(s) is a priority debt. It is NOT! The roof above your head, heat, light and food are your priority debts!

 

If, as you say, you have "optional" service cover on all items you have, you can simply return ANYTHING non-essential with no financial penalty. (Of course, you will have to accept that all you have paid on those things to date will be money down the drain, but that is the way a hire purchase agreement works. You were only HIRING the goods until the very final payment.)

 

You should then give BrightHouse 7 days notice to CANCEL all "optional" service cover agreements you have on your essential items. Just by doing this will save you a lot of money.

 

Read this extract from our BrightHouse fact sheet: (or read the entire fact sheet HERE

 

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“OPTIONAL” SERVICE COVER (OSC)

 

“Optional Service Cover” (non-insured) contracts are provided by BrightHouse themselves, and added to your hire purchase agreement as an additional weekly/monthly payment.

 

“…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.”

 

You should consider cancelling 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 is often 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…

 

Extended Warranty direct from ACER for a 15.4” Laptop - Available upon registering a new ACER product, or at the end of the manufacturer’s 12 month guarantee period

 

A single one off payment of £49.99 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, repairs within 5 days or a brand new replacement product if not completed within 28 days.

 

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

 

104 weekly payments of £5.95 (total £618.80) providing service cover for the 2-year duration of the agreement. As ACER guarantee 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 just a thinly disguised payment protection plan that HUGELY inflates the overall cost of the product, and 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 told us 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.

 

“…Customers fully understand their rights and obligations under the agreement. The terms and conditions are fully explained to them before they sign the contract. In addition to the purchase of goods through a Hire Purchase contract, customers may choose to take advantage of Optional Service Cover. This cover is optional, and the customer has the right to cancel it at any time.”

 

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

 

In much the same as an account re-set (see above) the removal of Optional Service Cover 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 similar covering letter similar to this one:

 

Original agreement number XXXXXXXXXXXXXXXX

 

New Agreement number XXXXXXXXXXXXXXXX

 

Date

 

Updated agreement to reflect Account Re-Set

 

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)

 

 

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Hope this helps

 

Cheers

Lefty