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What happens to me when you go bust

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The PC Association has developed a scheme that will enable its members to sell-on insured warranties to their customers and take the angst out of the question, "what happens to me when you go bust?". While high street retailers have been slammed for making more money on expensive extended warranties, the PCA is providing its members with a value add sell as well as a means of giving PC customers peace of mind. The insured warranty ensures that even if the PC maker goes out of business, customers' PCs are covered, as the warranty is underwritten by two insurance companies. The warranties cover PCs from entry-level desktop systems to high-end notebooks and are priced from about £50 (retail) for a sub £1500 desktop computer. CPU Finance and NOVA Retail Finance (a division of Hitachi Credit (UK) plc) have agreed with the PCA to extend and operate their insured warranty schemes to desktop computers, having previously covered just notebooks. Insurance is provided by Lloyd’s Underwriters and Sorema (UK) Ltd, both of which are Dun & Bradstreet “A” rated, according to the PCA. "We still have this situation where someone can come from nowhere with a bit of funding and set up a PC company," said PCA executive chairman Keith Warburton. "They then advertise their PCs as having five year warranties but what happens when they go bust? Who repairs their PCs when they are broken? Who looks after the warranty then?" Warburton added that the insured warranty is the most secure warranty for PC customers due to the fluctuating nature of the business. ®

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