AA warranty brought to book

26th July 2010

Breakdown firm the AA has come under fire for refusing to sign up to an industry code of conduct for aftermarket vehicle warranty providers.

The code of practice, which was established by auto watchdog Motor Codes, requires firms to use ‘plain English’ in their small print, and also ensure their claims procedures are simple.

For customers of those companies who sign up – including Warranty Direct and Warranty Wise – there’s free advice and help with disputes. The Financial Ombudsman deals with around 200 complaints a year about automotive warranties.

However the AA and two other firms – Mapfre Abraxas and MB&G – have refused to sign. “It’s not through want of trying,” said a spokesman for Motor Codes. “It’s a simple process. We visit and ensure their processes are up to the standards required by the code.” In Issue 1,097, we criticised AA Warranty, run on behalf of the firm by Motorway Direct, because it still applies a consequential loss clause, which means it won’t pay out for additional damage caused by a failed part. We also took issue with its lack of online booking and a failure to display full terms and conditions on its website.

A spokesman for the AA said: “We believe we already provide service that exceeds the requirements of codes of practice in the market.”