OFFICE OF FAIR
TRADING News Release (64/09) issued by COI News Distribution Service
on 1 June 2009
The Motor Codes
Ltd Code of Practice for vehicle warranty products has completed
Stage One of the OFT Consumer Codes Approval Scheme.
Subscribers to the code administer around two million warranties
for cars and motor vehicle products every year. By signing up to
this code, they have agreed to raise their standard of customer
service above that required by law.
Motor Codes Ltd was established to look after motor industry
codes of practice, including ones that had originally been
developed and administered by the Society of Motor Manufacturers
and Traders Limited (SMMT). Having completed stage one of the
OFT's code scheme, Motor Codes will now carry out
comprehensive monitoring including visits to garages and customer
satisfaction surveys, to ensure that the Code is working
effectively. Only codes that demonstrate this can achieve Stage
Two approval, and be entitled to display the OFT Approved Code logo.
The vehicle warranty code requires that members:
* give clear pre-contractual information to consumers so that
they can make an informed decision on the suitability of a warranty,
* give clear information to consumers on what is covered under
the warranty,
* provide a cancellation period of at least 14 days,
* give consumers access to an independent arbitration scheme for
products that do not fall within the remit of the Financial
Ombudsman Service, and
* agree to be subject to independent disciplinary procedures for
failing to comply with the Code.
Mike Haley, OFT Director of Consumer Protection, said:
'This is one of a number of codes entered into the OFT
Approved Scheme by Motor Codes Ltd, and I congratulate them for
working hard to drive up standards within the motor industry.'
'By achieving stage one of the two-stage process Motor Codes
Ltd has shown that the code meets our strict criteria. They now
have to prove it is working in practice. Consumers who purchase
from code members can anticipate they are going to receive a much
higher level of consumer protection than is required by law.'
NOTES
1. The OFT's Consumer Codes Approval Scheme aims to promote
and safeguard consumer interests by helping consumers to identify
better businesses, and to encourage those businesses to raise
their standards of customer service.
2. The scheme consists of two stages. During Stage One the code
must meet the OFT's published core criteria, which contain
measures designed to remove or ease consumer concerns about
undesirable trading practices. At Stage Two the code sponsor must
prove that its code lives up to the promises made in Stage One by
demonstrating that the code is being effectively implemented by
its members and that consumer disputes are properly resolved.
3. SMMT received Stage Two approval for its code for new car
sales on 27 September 2004 (see press release 153/04). Other code
approved organisations include the Vehicle Builders and Repairers
Association Ltd, the Direct Selling Association, the Ombudsman for
Estate Agents Company Ltd, the Carpet Foundation, Bosch Car
Services, and the British Association of Removers.
4. Code sponsors who have completed Stage One and are working
towards full approval of their consumer code are: MVRA Ltd, Debt
Managers Standards Association, Safebuy, British Healthcare Trades
Association, the Renewable Energy Association and the Institute of
Professional Willwriters.
5. For more information see the Consumer Codes Approval Scheme section.
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 oft@ecgroup.uk.com