Office of Fair Trade to investigate extended warranties
Are you sick of being hounded by pricks in shops trying to flog you an extended warranty, which you'll invariably end up paying over the odds for? All you wanted to do was buy a washing or some shit - not end up filling a million forms in that cost you your wages.
Well, the Office of Fair Trading (OFT from now on because it is easier to type) have launched an investigation into the market which is worth £750 million, following concerns that there's a lack of competition in the market.
This is bad news of Comet and Dixons and the like, because they make a tidy sum from these warranties and, with around one in four people taking out extended warranties, it has been suggested that consumers could be paying £366 million too much thanks to a lack of options elsewhere.
Claudia Berg, director in the OFT's consumer and goods group, said: "Consumers buy millions of extended warranties on domestic electrical goods each year and we want to make sure they are getting value for money."
"We plan a short and focused market study to find out quickly what, if any, action is needed to make this market more competitive, to the benefit of consumers and the wider UK economy."