Cash back warranties not guaranteed

When you get a warranty with an electrical appliance and you don't claim during the lifetime of warranty, some companies will give you your money back in full. But some don't.

Working Lunch viewer, Kathleen Copley of Kelso, bought a Creda tumble drier in July 1998, five years ago.

At the time of purchase she took out a five year cash back warranty because it looked like a very good deal.

She filled out all the necessary forms and sent them off to qualify for her money back.

Five year's later, because she's not made a claim during that time, Kathleen is now trying to claim her cash back.

But getting her hands on the promised £70 warranty money has not been as straightforward as she'd hoped.

"I don't normally take out extended warranties, but there seemed to be no downside on this one," said Mrs. Copley.

"I had to register within a couple of days and I did that, but I got nothing back.

Kathleen: "I think they are trying not to settle this."

"When I went to my documents recently I found out that I needed a validation redemption certificate to be eligible for the money back so I wrote to them asking them to send me a new one.

"I was told that this was sent to me at the time and that I can't make the claim without it. They cannot re-issue the certificate."

This is a common problem with this type of warranty.

According to the Office of Fair Trading the terms and conditions are often very onerous.

So much so that some companies have been taken to court by the OFT for 'unfair contracts legislation.'

But if the small print explicitly says that the company does not re-issue certificates and that the cash back claim is void without one, it has the law on its side.

Kathleen thinks that it's ridiculous that a new share certificate can be re-issued but a validation certificate can't.

"I think they're trying not to settle this," she says.

"I have the receipt and another certificate saying that I bought it when I did, but that's not enough.

"I suspected I'd probably not get my money back when I took out the thing in the first place but I did everything that they asked."

The claim is currently eligible to be paid and we apologise if there has been some misunderstanding about the requirements for the scheme. Warranty company, LGH

Thanks to a few phone calls from Working Lunch, the company in question, LGH, now says that there has been a misunderstanding, and will redeem Kathleen in full.

If you're tempted by a cash back warranty deal then be warned:

Do exactly what is asked in the small print

Keep your documents safe

Keep up to date and don't miss the key deadline for claiming your money back.