National Warranty Company refunds
Refunds for warranties sold through car
dealerships
National Warranty Company (NWC) is refunding $4.9 million to
6,367 customers who were sold warranties to cover repairs when they
bought a car.
Here, we explain why the refunds are being offered, who is
entitled to a refund and how to contact NWC if you have any
questions about your cover, or the refunds process.
Why is National Warranty Company
refunding customers?
The refunds are being paid because car sales staff were offered
incentives to sell the warranties at the highest possible price.
The more expensive the warranty, the larger the sales
commission.
For example:
- If the warranty was sold for $1500 - the car dealer would earn
a commission of $500
- If the warranty was sold for $2000 - the car dealer would earn
a commission of $1000.
This kind of sales incentive was banned from 1 July 2013 as part
of the Future
of Financial Advice (FOFA) reforms.
See ASIC's media release for
more information about the refunds.
Am I entitled to a refund
from National Warranty Company?
You may be entitled to a refund if you bought a warranty, which
covered car repairs, from NWC when you bought a car between 1 July
2013 and 28 May 2015.
Check your car loan documents if you're not sure whether you
were sold a warranty or what brand it is.
When will NWC be contacting customers?
NWC will write to all affected customers with details of its
refund offer in January and February 2018. If you have questions
about your cover, you should contact NWC by emailing enquiries@nwc.com.au.
If you receive a letter from NWC but do not contact them for a
refund before the 28 day deadline, you can still claim your refund.
NWC will explain how to do this when you contact them.
What will my refund be?
Your refund will be based on the difference between the cheapest
price the dealer sold the warranty for, and what you actually paid.
For example, if the lowest price for the warranty was $1,000 and
it was sold to you for $1,500, you will receive a $500
refund.
Most refunds will be $100 or less, but some customers may
receive $2,000 or more. All refunds will include interest.
The refund will not affect the warranty. You will still be able
to claim under the warranty if the claim falls within the terms of
your policy.
What if I disagree with
National Warranty Company's offer?
If you are not happy with the refund offered by NWC, you should
send an email to enquiries@nwc.com.au.
If you are not happy with how NWC handles your complaint, you
can ask for it to be reviewed by their internal dispute resolution
team. If NWC takes more than 45 days to respond to your complaint,
or if you're not happy with the decision they make, you should
contact the Financial Ombudsman Service on 1800 367 287 or visit fos.org.au.
You can complain even if you accept NWC's refund.
For tips on lodging a complaint, see how to complain.
What if I am not covered by NWC's refund program?
NWC's refund program covers customers ASIC has identified were
sold warranties as a result of unfair remuneration arrangements
with the car dealer.
However, other customers may also be entitled to a refund
because of something that happened to them at the point of sale.
For example, you may have only agreed to buy the warranty because
the sales person said you had to have it to get the loan.
You can raise concerns about your policy or how it was sold to
you by emailing NWC at enquiries@nwc.com.au.
If you are not happy with NWC's response, you can contact the
Financial Ombudsman Service on 1800 367 287 or visit fos.org.au.
You can also receive information or help from:
Other refunds following ASIC's investigation into add-on
insurance
ASIC has identified unfair conduct by a number of insurers who
offer add-on insurance and extended warranties by car dealers or
finance brokers. As a result, these insurers have agreed to refund
over $120 million to customers who were sold these products.
For more information, see add-on insurance.
Benefits like commissions and sales incentives
can influence the products offered to you. If you are being
pressured into a sale it could be a sign the sales person wants to
earn a commission, rather than because you need that product. You
are not obliged to sign up on the spot, and you can always say
'no'.
Related links
Last updated: 05 Dec 2018
