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Warranty Direct forecasts industry's non-compliance with OFT warranty warnings

Commenting on the OFT's threat of a full investigation of the car warranty market, Duncan McClure Fisher, managing director of Warranty Direct said yesterday: "Precedence shows that franchised dealers and manufacturers fail to heed 'advisory' comment from the authorities. I expect the threat of a full investigation under EU competition law from the OFT will become reality in due course."

He added: "Educating the consumer of their rights is one thing, but dealers have an uncanny capacity to say no when it doesn't suit them."

Research recently published by Warranty Direct highlighted the disparity in labour rates between franchised dealers and independent garages. The firm has also complained about some franchise dealers' refusal to honour its extended warranties on European imports.

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