One reason for avoiding used cars may be that you don’t want to be hit by expensive and unexpected repairs.
However, there are companies that offer guarantees on used cars, which should reduce the risk and make the car purchase feel safer.
Now one such company has found itself in trouble, after several customers have not received compensation when their cars have broken down.
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Sells warranty on used cars
More specifically, it is about Svenska garantibolaget AB. The company has been reported to the General Complaints Board (ARN) by a number of customers who have bought guarantees, but did not receive compensation when the car broke down.
SVT has, for example, spoken to Greger in Smålandsstenarwho was denied compensation of SEK 35,000 for a major repair. The company referred to the fact that it does not offer compensation for “foreseeable errors”. This was thought to apply in Greger’s case, as the breakdown he suffered is common on his car model.
Buying a used car can feel unsafe – Photo: Leo Sellén/TT
However, Greger claims that he is entitled to compensation, and is supported by ARN.
SVT has also spoken to Goran in Jönköping. He was denied repair of the cardan shaft on his car, as the Swedish warranty company claims that the damage is a result of “normal wear and tear”.
After SVT, Goran was offered a “goodwill gesture” in the form of compensation of SEK 336, which he describes as “laughable”.
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Reported to ARN and the Swedish Consumer Agency
According to SVT, the Swedish guarantee company has been reported to ARN at least 10 times, of which four have been settled – all in favor of the customer.
The company has also been reported to the Swedish Consumer Agency about 40 times, and the Swedish Consumer Agency has also called on the company several times to change its advertising mailings.
These are designed to resemble an invoice.
– It should be clear even at a quick glance at the document that it is an advertising mailing. It doesn’t, says Malin Brännströmlawyer at the Swedish Consumer Agency and supervisor for the supervisory matter, to SVT.
The Swedish guarantee company’s lawyer has said that they should change their mailings.
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This is how the company responds
The company confirms in one answer to SVT that notifications have been received to both ARN and the Swedish Consumer Agency.
These are seen as a natural part of being active in the industry, and it is emphasized that the majority of customers are satisfied.
They also say that they have worked on “further improving” their communication with customers.
Regarding the recommendations from ARN, the company states in a response to SVT that “We follow the advice when it is relevant”.
The exceptions that are referred to when denying compensation to customers are, according to the company, necessary to be able to provide an affordable product. This is explained in another email to SVT.
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