17/06/2026
Our Managing Director, Joel Combes, remembers the first time he watched a used car warranty pot scheme collapse. It was around 2007 or 2008.
Dealers had been paying money into a central fund. Claims were being paid and everything appeared to be working exactly as intended. Then the company got into trouble and the pot disappeared with it.
At the time, it seemed like an isolated incident.
Then GEM Warranties collapsed in 2017.
More recently, Evolution Warranties ceased trading on 6 March this year, with customers still reporting unpaid claims that had been submitted months earlier.
Three different businesses. Three very different periods in time. Yet the same fundamental issue.
As Joel explains in this week's blog, when your warranty fund sits in someone else's bank account, it is no longer under your control. If that business gets into difficulty, you may find yourself standing in line with everyone else.
The article looks at the similarities between these cases and asks what dealers should be asking before they hand over their money.
One question stands above all others:
Where is the money actually held, and why?
Read the full article here:
www.lawgistics.co.uk/blog/articles/the-first-time-i-watched-a-warranty-company-disappear-it-was-around-2007/
This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.