Look out for shonky warranties says Choice

Consumers should be on their guard against investment warranties which offer little protection, Choice has warned.

In its annual Shonky awards, which aim to name and shame dodgy products and services being proffered to consumers across the country, the group singled out Equitrust as running a particularly shady operation with its capital warranty deal.

The service is offered as protection for investments made with the mortgage trust, which commonly offers returns slightly above those offered by term deposits and other savings accounts.

However, Choice noted that there is often a greater risk attached and despite offering these so-called warranties, consumers will be left with little protection for their money should their investments take a nosedive.

“Most consumers understand warranties (such as for a toaster) to involve the replacement of the entire product should it prove defective. But there’s no such promise for this investment,” Choice warned.

At last year’s awards, the country’s major banks were slammed for unfair fees charged in cases where accounts are overdrawn, although this year Choice noted that most of the offenders have since revised their policies.ADNFCR-1761-ID-18895068-ADNFCR