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Daily Insurance Industry News
Wednesday 25th of April 2018
November 27, 2010

FSA liquidates BSkyB warranty companies

by Gill Montia

Story link: FSA liquidates BSkyB warranty companies

The Financial Services Authority (FSA) has brought to an end the activities of three companies that offered BSkyB satellite TV customers extended warranties.

The Regulator considered their services a form of insurance but none of the firms have ever been authorised by the FSA, which has now obtained a High Court ruling appointing provisional liquidators to:

Digital Satellite Warranty Cover Limited (DSWC), Satellite Services (a partnership) and Nationwide Digital Satellite Warranty Services Limited.

All three firms were operated by Bernard Freeman and Michael Sullivan who, in return for an insurance premium of between £6.49 and £11.49 per month, promised customers unlimited callouts covering all parts and labour costs.

DSWC made a profit of approximately £10 million in the last 12 months and had a customer base of up to 200,000 people.

Sky has recently written to all customers with affected warranties to confirm that it will provide free support.

For those customers who have paid in full in advance, Sky will provide service calls free of charge for the remainder of their contract period, while those paying on a monthly basis will be covered by Sky until 31st December 2010.

 

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