LEX Freechoice - RAC cover question

[Chips123]

Hi all,

 

I have recently discovered something that has annoyed me a little.

 

I finished a 3 year car personal lease with Lex Freechoice in december. The salesman advised me to take the RAC cover as an extra and as it was only £3 or so a month I thought why not.

 

I have since discovered that the particular car I leased (& subsequently opted to buy) actually comes with 3 years AA cover included!

 

Do you think its worth contacting Lex to see if they will refund the payments for the RAC cover or are they likely to tell me to get stuffed... I know its only a little over £100 but its still money that was wasted....

[calvi36]

Hi Chips. Go for it, you should not have been sold the RAC cover as an extra as you were already covered. Most cars come with 2 or 3 years breakdown cover anyway, provided by the manufacturer. Also as it was a leased vehicle the cover is already built into the monthly rental. The lex quoting system does allow this to be removed to reduce monthly payments. It is just another way of upping the rental for something that is not required. What make and model was it btw?

[Chips123]

Hi Chips. Go for it, you should not have been sold the RAC cover as an extra as you were already covered. Most cars come with 2 or 3 years breakdown cover anyway, provided by the manufacturer. Also as it was a leased vehicle the cover is already built into the monthly rental. The lex quoting system does allow this to be removed to reduce monthly payments. It is just another way of upping the rental for something that is not required. What make and model was it btw?

 

Hi there- I leased through Lex FreeChoice, and you do actually get the option of adding or removing the RAC cover, I only added it at the recommendation of the salesman anyway!

 

Its a 53 plate Renault Megane, covered by the Renault Assistance Cover - 3 years AA cover for cars registered before 01/09/06.

 

In the middle of drafting a letter now to them - will keep updated as to what they come back with.

[patdavies]

You need to make it clear that you were mis-sold this cover.

 

Just saying that you have recently discovered that you don't need it is too weak.

[Chips123]

Thanks again for comments, I have drafted the letter below - Do you think this will be suitable?

 

 

Lex FreeChoice

Heathside Park,

Heathside Park Road,

Stockport

Cheshire

SK3 0RB

 

 

Dear Sir\Madam,

 

 

I am writing in regards to my recently closed account with you - Fleet No. XXXXXXXX.

 

 

Your records will show that I leased a Renault Megane (Reg - XXXXXX) and that the option for RAC cover was included with my lease agreement – This cover was taken out on the recommendation of the salesman who dealt with the contract.

 

 

I have now discovered that my car was already supplied with AA cover as part of the “Renault Assistance Service” that was running at the time of my cars registration. This can easily be confirmed by Renault if required. The cover supplied by this service was valid for the 3 year lease period and was of an equivalent level to the RAC cover that was purchased through your company.

 

 

As this information would have been readily available to you at the time of the contract being agreed, I believe that I was mis-sold the RAC cover by your company and as such I request all payments made by me for the RAC cover be refunded, including any interest charged over the 3 year lease period.

 

 

I look forward to your prompt response to this matter.

 

 

Yours faithfully,

[calvi36]

Try this one, see what you think chips. It is important to state a timescale, yours no theirs, failing to state a timescale gives them an open date to respond to. This is your timescale, you state the deadlines and you stick to them. Lex are mebers of the BVRLA and should abide by their code of practise.

 

Thanks again for comments, I have drafted the letter below - Do you think this will be suitable?

 

 

Lex FreeChoice

Heathside Park,

Heathside Park Road,

Stockport

Cheshire

SK3 0RB

 

 

Dear Sir\Madam,

 

 

I am writing in regards to my recently closed account with you - Fleet No. XXXXXXXX.

 

 

Your records will show that I leased a Renault Megane (Reg - XXXXXX) and that the option for RAC cover was sold as an addition to my lease agreement – This cover was sold to me by the salesman who dealt with the contract.

 

 

I have now discovered that my car was already supplied with AA cover as part of the “Renault Assistance Service” that was running at the time of my cars registration. This can easily be confirmed by Renault if required. The cover supplied by this service was valid for the 3 year lease period and was of an equivalent level to the RAC cover that was purchased through your company. This cover was not required at all and I was mis-sold additional cover that could never be used.

 

 

As this information was readily available to you at the time of the contract being agreed, I state that I was mis-sold the RAC cover by your company and as such I demand all payments made by me for the RAC cover be refunded, including interest charged at 8% over the 3 year lease period.

 

 

I look forward to receiving your response within 14 days. If you fail to respond within my timescale then I shall issue a letter before action and I shall also report this matter to the Financial Services Authority and the British Vehicle Rental and Leasing Association.

 

 

Yours faithfully,

[patdavies]

Nice one

[Chips123]

Thats great - appreciate your help, I will get that off Monday and update here once they respond!

[calvi36]

no worries chips, please keep us informed of any developments.

[BritBrat]

This cover was not required at all and I was mis-sold additional cover that could never be used.

 

Can I ask why it could not be used?

 

Maybe a silly question but why can't you have two covers one with AA and another with RAC, it's not like insurance as with that you can't insure the same thing twice.

[calvi36]

why would you want to pay for a second form of coverage that is equivalent to the coverage given by Renault via the AA? Maybe it's just me but I don't like the idea of being duped into paying for something I already have FOC!

[Chips123]

why would you want to pay for a second form of coverage that is equivalent to the coverage given by Renault via the AA? Maybe it's just me but I don't like the idea of being duped into paying for something I already have FOC!

 

This is exactly how I feel... and considering that around 10 or so manufacturers provide AA cover for between 1-3 years with new cars then makes you wonder how many people are in the same boat.

 

If nothing else they need it bringing to their attention then maybe they will be a little more forthcoming with information in the future when trying to sell RAC cover to new customers who don't need it.

[Dalnahaine]

Can I ask why it could not be used?

 

Maybe a silly question but why can't you have two covers one with AA and another with RAC, it's not like insurance as with that you can't insure the same thing twice.

 

One of the main reasons you couldn't use the RAC would be that they would not be authorised by Renault to repair the car and therefore doing so could invalidate the warranty

[patdavies]

One of the main reasons you couldn't use the RAC would be that they would not be authorised by Renault to repair the car and therefore doing so could invalidate the warranty

 

I'm sorry to rubbish your first post on the forum, but what you are saying is just nonsense.

 

Renault do not need to authorise breakdown services or anybody else to order to maintain the warranty.

 

The car does not even need to be serviced by a Renault franchised dealer in order to retain the warranty - although it must be serviced according to Renault's programme and Renault approved parts used.

 

Britbrat actually has a valid point. It is wrong that the RAC cover "could never be used"; it is simply mis-sold because it is unnecessary as a similar service is supplied by the manufacturer (via the AA).

[Chips123]

I did actually reword that portion of the letter to say the cover sold to me was unnecessary and in effect useless, rather than could never be used.

[pingu-lingo]

RAC breakdown cover sold to you covers you for all the things the AA warranty breakdown policy doesn't cover (I work for RAC on the Lex breakdown desk so I should know) or it will give you a higher level of cover.

 

Mostly it would cover you for breakdowns that are classed as driver errors - which includes accidents, wheel changes, fuel contaminations, getting vec stuck in mud etc AA will sometimes attend for these things under the warranty breakdown but either will charge or only tow you within 10 miles.

(I'm not AA bashing - they are limited by the fact that the breaksdown cover is manufacturer warranty based -vehicle manufacturers are the ones who set the limits)

 

Plus AA vehicle warranty for the vehicle tends to run for longer than the AA breakdown cover. So eg, Vauxhall usually is 12 month breakdown cover & 3 years vehicle warranty. So you probably wouldnt have had AA breakdown for the whole period of your lease.

 

You'll probably find that Lex might argue these points in response to your letter but good luck with getting your money back though!

[BritBrat]

Thanks for the replies, I did find them very usefull.

 

I was asking because we have always been with the RAC but we have a new car that comes with AA cover, I have canceled the RAC but was thinking of getting it again but with a lower package (Family at the moment) so having two to choose from but at a lower cost than I was paying before.

 

I am also trying to rejoin the RAC using quidco and any other discount like Tesco I can get, there is no rush and I am just waiting for the right deal.

 

EDITED:

 

We cross posted pingu-lingo, your comment fits in to what I was thinking and why I was going to have the two options. We are currently on the top RAC family cover.

[calvi36]

RAC breakdown cover sold to you covers you for all the things the AA warranty breakdown policy doesn't cover (I work for RAC on the Lex breakdown desk so I should know) or it will give you a higher level of cover.

 

Mostly it would cover you for breakdowns that are classed as driver errors - which includes accidents, wheel changes, fuel contaminations, getting vec stuck in mud etc AA will sometimes attend for these things under the warranty breakdown but either will charge or only tow you within 10 miles.

(I'm not AA bashing - they are limited by the fact that the breaksdown cover is manufacturer warranty based -vehicle manufacturers are the ones who set the limits)

 

Plus AA vehicle warranty for the vehicle tends to run for longer than the AA breakdown cover. So eg, Vauxhall usually is 12 month breakdown cover & 3 years vehicle warranty. So you probably wouldnt have had AA breakdown for the whole period of your lease.

 

You'll probably find that Lex might argue these points in response to your letter but good luck with getting your money back though!

 

 

Taken directly from renault.co.uk

 

Renault Assistance – Breakdown Assistance

Renault UK employs the services of the Automobile Association, the UK’s leading breakdown assistance organisation, to bring you Renault Assistance during the warranty cover (up to 24* months from date of registration). Our fully comprehensive roadside assistance package is available 24 hours a day, every day of the week.

* 36 months for light commercial vehicles, or if your car was registered before 01/09/06

Who is covered by Renault Assistance?

Renault Assistance is a vehicle based membership so it covers anyone driving your Renault in the UK with your permission. All new vehicles purchased in the UK from a franchised Renault dealer are automatically covered by Renault Assistance which includes the full range of benefits and provides cover for the duration of the warranty period.

Help when you need it with:

• A 24 hour Freephone number
  
• Home and Roadside Assistance
  
• Solutions to your problems from operators trained to help people

Breakdown Assistance 24 hours a day, 7 days a week

 

 

What are the benefits of cover?*

If your vehicle breaks down at the roadside and is immobilised, we will send out a AA Patrol or appointed agent to get you back on the road. In the exceptional circumstances where an “on-the-spot” repair proves impossible, you are entitled to use the Recovery services detailed.

Home Start

If your vehicle breaks down at or within a ¼ mile of your home, Home Start will bring help to your doorstep. If your vehicle cannot be repaired, the AA will transport it to the nearest authorised Renault dealer, or another destination of your choice, whichever is the nearer.

 

Recovery

If your vehicle breaks down more that ¼ mile from your home and a prompt local repair at the roadside is not possible, we will arrange onward passage for you, up to seven passengers and your vehicle to any single destination in the UK mainland or Northern Ireland. This also includes the Isle of Man and the Channel Islands, although ferry costs must be borne by you. If you are towing a trailer or caravan at the time, this will also be recovered, subject to certain weight and size restrictions.

 

Onward Travel

When your car is immobilised away from home, Renault Assistance provides additional benefits immediately following the provision of Recovery, giving you a choice of ways to continue your journey. Simply choose the one that is most convenient for you, while we take your vehicle to an authorised Renault dealer:

 

• We can arrange provision of a replacement hire car for 24 hours (subject to the terms and conditions of the hire car policy). To ensure that you are eligible for a replacement vehicle, please make sure you have your driving licence with you. You may have to pay a fuel deposit, and will be responsible for the return of your hire car plus any additional costs.
  
• Or, if you prefer not to drive, Onward Travel will cover public transport costs for you and up to seven passengers**, up to the prevailing current monetary limit, which will be advised by the attending agent or patrol
  
• Or, the AA will arrange and pay for overnight accommodation, and transport you and up to seven passengers* to a hotel selected by Renault Assistance

**Up to the seated capacity of the vehicle.

 

European Cover

Your Renault Assistance cover also entitles European Breakdown cover for vehicles registered from 1st September 2006. Renault European Assistance, backed by the AA, can give you and your family peace of mind while travelling in your Renault anywhere in continental Europe and Eire (subject to terms and conditions).

 

 

* Applies to the UK only (includes Northern Ireland but excludes Southern Ireland).

 

I would say he had more than adequate cover.

[pingu-lingo]

I wasnt arguing what was or wasn't adequate cover - I thought it might be useful to highlight what Lex are likely to use in response to the letter and also what isn't covered under warranty breakdown schemes (which the page you've quoted doesn't mention)

[calvi36]

That is fair enough, am not aruing at all with you pingu. My background is leasing. It is fact that most major funders already build in breakdown cover, even when there is manufacturer cover. This should be removed by the salesperson when doing the quote as it is paying twice for the same/similar type of service.

 

It is also worth noting that if the vehicle is recovered to a dealer and the fault with the vehicle is not covered under warranty then the customer will have to pay for the repair if they are on a non maintained lease. If it is a fully maintained lease then everything is covered apart from accidental damage, driver error eg wrong fuel and deliberate damage. This would be the same with your type of cover as am sure the rac are not going to pay a garages bill in removing contaminated fuel.

[calvi36]

I'm sorry to rubbish your first post on the forum, but what you are saying is just nonsense.

 

Renault do not need to authorise breakdown services or anybody else to order to maintain the warranty.

 

The car does not even need to be serviced by a Renault franchised dealer in order to retain the warranty - although it must be serviced according to Renault's programme and Renault approved parts used.

 

Britbrat actually has a valid point. It is wrong that the RAC cover "could never be used"; it is simply mis-sold because it is unnecessary as a similar service is supplied by the manufacturer (via the AA).

 

Hi Pat, you are correct in what you state regarding "The car does not even need to be serviced by a Renault franchised dealer in order to retain the warranty - although it must be serviced according to Renault's programme and Renault approved parts used." However funders have changed their attitude towards this and as the car is owned by them they are stating that the vehicle must be serviced at a franchised dealer. The latest one to state this is BOS Vehicle Management. This is because the service history directly affects the resale value of the vehicle and they have found out that residual values are adversely affected if serving is done by a non franchised dealer. This is not about anti-competition, this is about protecting the value of the vehicles they own

[pingu-lingo]

That is fair enough, am not aruing at all with you pingu. My background is leasing. It is fact that most major funders already build in breakdown cover, even when there is manufacturer cover. This should be removed by the salesperson when doing the quote as it is paying twice for the same/similar type of service.

 

It is also worth noting that if the vehicle is recovered to a dealer and the fault with the vehicle is not covered under warranty then the customer will have to pay for the repair if they are on a non maintained lease. If it is a fully maintained lease then everything is covered apart from accidental damage, driver error eg wrong fuel and deliberate damage. This would be the same with your type of cover as am sure the rac are not going to pay a garages bill in removing contaminated fuel.

 

We will do fuel drains (warranty restrictions permitting) on a maintained contract and then the customer/company gets an invoice - so not cost free but sometimes handier than having to find a few hundred pound on the roadside - still ends with a big bill heading the customers way though!

 

I do think that the whole thing should be clearer though - for all customers. I get lots of people who think they are covered when they are not and its awful having to explain that when they are stuck on the roadside and there's nothing I can do to help.

Insurance and car salesman both seem to be equally bad at glossing over exactly what the breakdown cover does and does not include.

[calvi36]

That's because most retail car salesmen don't know what it does and does not cover pingu. They are not trained nor taught about breakdown cover at all. leasing is completely different as we have to advise on whether to take a fully maintained contract or not. I weigh up annual mileage, term of lease, warranty 60k renault compared to 100k vauxhall for the same vehicle for instance(Trafic versus Vivaro), also look at maintenance intervals, whole life costs, customers inclination to hassle free set payment for term etc.

[Dalnahaine]

In response to patdavies, 'rubbishing' my post isn't at all a concern, thats what makes forums interesting and creates debate so not a problem. My view is based only on that having spent 25 Years working with the AA (retired) I would always advise a customer against non manufacturer authorised repair on warranty jobs, and equally AA patrols would generally not be expected to attempt one for fear of affecting the warranty. The only exception to this would be where the AA had the service contract for that particular manufacturer. This was also the course taken by the RAC I do stand to be corrected though and am currently seeking the present situation from current AA Patrol staff which I'll come back with.

[Dalnahaine]

Some feedback from an AA patrol on the warranty situation -

"...Any VAT registered garage can service a vehicle and not affect its warranty as long as they use genuine parts and the schedule is followed and the book stamped accordingly

Regarding fitting parts etc, if an AA patrol wanted to fit a part to permenantly fix a fault on a Renault he would first have to get authorisation from Renault (order No.), then collect the part from a dealer & fit it.

An RAC Patrol would never be able to get authorisation from Renault & therefore any repair would not be covered because there wouldnt be any paperwork etc.." From my experience this applies to any make of car for which a particular motoring organisation isn't contracted to attend to, the facilities simply are not in place for claiming, sourcing, costing and paying for repairs by or to unauthorised agents, not to mention the miriad of other complexities which can arise through 'non authorised' repairs.