I would guess that, if you examined the small print, you would find that you would be purchasing a whole year's warranty on credit and the monthly payments were actually monthly loan repayments rather than paying for each month individually. Therefore if the machine was replaced and the warranty company held that their contractual obligations were fulfilled, you would still have to pay off the loan.

Unless you have documentation that says so, I would not assume that you would get a warranty with the replacement machine.

Mike


On Monday, January 9, 2017 at 12:27:43 PM UTC, Davey wrote:
We have a Hotpoint Dryer, six years old, and which was 'Fixed' under
the free Prevention of Fires plan, some months ago. It works fine, but
is now in what I would call the 'risky' part of its life cycle.
I have received an offer from Hotpoint for an Extended Warranty, which
would cost me £5.15 per month, for a contract period of one year. It
allows for a replacement of the machine if it breaks down and cannot be
repaired. So far, so good.
But it states that, if it is replaced, at Hotpoint's discretion, then
not only does the warranty cease, which is fair enough, as the new
machine will have its own warranty, but that I would also be liable for
the unpaid remaining months of the contract period, which seems daft.
If I am not being covered, why should I pay?

Any thoughts, for or against? I can see that it is a contract, but the
replacement of the machine would surely break this?

--
Davey.