Extended warranties: know your rights Cashback deals

A number of companies advertise and sell extended warranties on a cashback basis. These offer to refund all of your premiums if you don't claim on the policy for a fixed period.

It may sound like you can't lose, but there are often conditions to getting this money back. So make sure you read the small print in the agreement carefully before signing up.

Don't forget to register

After signing the warranty you might have to register your cashback status in order to qualify. And some companies only give you a very short time to do this. If you miss the deadline and fail to register you could lose your right to the cashback at the end of the term.

If you don't ask, you don't get

Even if you do remember to register your cashback status on time, most companies don't automatically give your cash back at the end of the warranty period.

It is usually your responsibility to ask for the refund when the time is up, which can be tricky to remember a number of years down the line. And you might only be given a few weeks in which to apply for it.

If you miss the deadline the company is within its rights to refuse the cashback. If you believe you are entitled to a refund, complain to the retailer.

If the company goes bust

If a company goes bust before the warranty ends and the cashback becomes due, it's unlikely that you'll be able to get your cash back. You may have to register a claim with the receivers to get a proportion of your money back (although you may still end up with nothing).

Or, if the scheme was backed by an insurance company, you should be able to claim your money back from it. In this case, if you have problems claiming your money, you can take the matter to the Financial Ombudsman Service.