Extended warranties: know your rights FAQs
How to cancel an extended warranty
Can I cancel a warranty and get a full refund?
Yes – if you change your mind after buying an extended warranty that lasts more than a year for a domestic electrical appliance, you have 45 days from when you take out the warranty to cancel it and get your money back. You don't need to give a reason.
For other types of warranty, you probably won't get a refund unless there is no specific right to a refund and so you will need to see whether the law gives you any other right to cancel.
Company changes
What happens if the retailer I bought an extended warranty from is taken over by another company?
If the extended warranty scheme was run by the retailer you bought it from your position will depend on whether the business that took them over took over the company as a whole taking on all the contracts and liabilities or whether they are actually a new company that just took over the premises.
If it's the latter, then unless the retailer you bought from still exists as a company, in practice, there would be no real scope for you to enforce your rights under the warranty. If your warranty cost over £100 and you paid for it on a credit card you may be able to claim against your card company under Section 75 of the Consumer Credit Act 1974. The same is true if the retailer goes bust.
Some extended warranties are run or backed by insurance companies (your warranty documents should make it clear who runs the scheme).
In this case, if the retailer disappears or goes bust, you should still be able to make a claim under the warranty from the insurance company for the lifetime of the warranty. Check the wording of your warranty carefully.
Limited cover
I bought a washing machine two years ago and the salesman persuaded me to buy a three-year extended warranty. The machine has broken down and the warranty company says it won't pay to fix it, because it doesn't cover drum failures. Is this right?
No guarantee or warranty will cover everything. Check your warranty documents, but it is likely there is a clause that explains this exclusion. If you can't find it, insist on the company showing it to you.
However, under the Sale of Goods Act 1979 (as amended) the retailer itself might be liable to repair or replace the machine, if it is considered unreasonable for the fault to have developed so soon after purchase.
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