PROD 5.1 Ensuring the customer can make an informed decision

1A firm must give the customer the information in (3), at the same time and in the same document, when it offers to sell them an extended warranty.

A firm must ensure that any other person to whom it has referred the customer or invited or induced the customer to obtain an extended warranty from gives the customer the information in (3), at the same time and in the same document, when that person offers to sell the customer an extended warranty.

The information is:

1. (a)

   the total cost of the extended warranty, separate from any other prices, in the following terms:

   1. (i)

      weekly;

   2. (ii)

      annually; and

   3. (iii)

      over the duration of the rent-to-own agreement;

2. (b)

   the significant features and benefits, significant and unusual exclusions or limitations of the extended warranty, with cross-references to the relevant warranty document provisions;

3. (c)

   a statement that extended warranties may be available from other persons;

4. (d)

   an explanation of how the extended warranty interacts with and compares against any other products sold or offered for sale in connection with the rent-to-own agreement (e.g. theft and accidental damage insurance);

5. (e)

   an explanation of how the extended warranty interacts with and compares against any standard manufacturer’s warranty that may apply to the goods which are the subject of the rent-to-own agreement, given in a way that enables the customer to make a clear comparison between the two;

6. (f)

   when the extended warranty can be concluded, as described in PROD 5.2.1R; and

7. (g)

   the date the information in (a) to (f) is provided to the customer.

The information in (3) must be communicated in a way that is:

1. (a)

   fair, clear and not misleading;

2. (b)

   in writing or another durable medium; and

3. (c)

   made available and accessible to the customer.

The information in (3) must be drawn to the customer’s attention and must be clearly identifiable as key information that the customer should read.