I bought a car from Carcraft in September 2013. The deal was via a loan from Creation and included £1,995 for a Drive Happy plan, which provides parts and labour, future servicing and MOT plus, crucially, roadside assistance.
In May Carcraft went bust, and all the things I had paid for in the package disappeared. On its website Carcraft mentioned that it was trying to find replacement breakdown cover, but when I eventually got through to customer services it said it knew nothing and referred me to Creation, which stated that I still had to pay the same amount each month. It seems so wrong that I am continuing to pay for a policy I am not getting. NS, London
I have happy news for you. Hitherto the thousands of Drive Happy policyholders were told their best hope was to write to Carcraft’s administrators and join the end of a long queue of creditors. A day after I contacted Creation it announced that a letter was being sent to all Carcraft customers who have a finance agreement. “We are keen to ensure customers have peace of mind and are looking into alternative options for warranty products, or customers may choose their own cover and we will reduce the finance agreement by the full amount of the Drive Happy guarantee and any associated interest accordingly,” said a spokesperson. You have now been absolved from paying future premiums and are free to seek cover elsewhere.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
