Purchase Protection

Honest John Back Room » Motoring discussion
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Thu 2 Sep 2004 12:59
Purchase Protection - SjB {P}
When I purchased my motorbike six years ago, I used my credit card to pay the full amount, which I then settled by bank transfer before any credit charge was due.

One of the reasons I did this was to gain purchase protection.

Just reading the Ts and Cs for my new chip and pin credit card however, and (I quote) "The following items are not covered (by purchase protection - SjB): Motorised vehicles, including but not limited to aeroplanes, cars, motorbikes, their motors, equipment and accessories."

Oh well, just as well I don't currently need such a service!

It does beg a question though in so much as is this commonplace, or a one off? The small print really was small, and I'm glad I read it all carefully on receipt, though many won't.
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Thu 2 Sep 2004 13:52
Purchase Protection - martint123
Could you define 'purchase protection' please.

My card gave 3 year warranties on large items if you phoned and registered them. They've stopped doing it now. Vehicles were excluded.

Martin
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Thu 2 Sep 2004 14:08
Purchase Protection - SjB {P}
Could you define 'purchase protection' please.

Sure:

"Purchase Protection provides protection for most of the Goods You buy using your XXXX Credit Card if the Goods are stolen or damaged accidentally. Cover starts from the date you buy the Goods for a period of 100 days. Cover is on a Secondary Insurance basis. Certain exclusions apply."

This is almost exactly the same wording as applied six years ago, but back then, motorbikes were not a named exclusion from cover.
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Thu 2 Sep 2004 14:26
Purchase Protection - Bromptonaut
I'd guess they've got burned fingers. Clever chappy who dreamed up the purchase protection wheeze only thought about usual cc purchases clothes/white goods/cameras etc. Shut the stable door after the claim for the Ferarri!
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Thu 2 Sep 2004 14:59
Purchase Protection - DavidHM
It's probably there because they don't want to be seen as Road Traffic Act insurers. I don't know about actual risk, but if they're their getting 2.5% of £75 instead of £17.50, I'd have thought that the extra commission would cover the risk.

Of course you still have the Consumer Credit Act joint supplier/credit liability.

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Thu 2 Sep 2004 23:04
Purchase Protection - martint123
OK - SjB, with that wording I'm not suprised they dropped it for vehicles, especially m/bikes - it has the effect of giving fully comp insurance to someone who only has 3rd party only. That is a very large risk to carry.

Martin
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