Scores of readers contact...

Scores of readers contact our Watchdog pages every week following disputes with agents, and the new legislation is aimed at protecting their rights - but Auto Express can reveal plans to introduce the rules are in chaos.

Thousands of showroom staff are faced with guidelines governing the sale of insurance products, such as extended warranties and payment protection. Designed to safeguard customers from exemptions in small print, the rules come into effect in January.

However, we"ve discovered many dealers haven"t even got the licence needed to carry on selling the policies. Louise Wallace, business development manager at the Retail Motor Industry Federation, said: "Only 60 per cent of main dealers have applied for authorisation. Without it, they won"t be able to sell the products." The new rules will be regulated by the Financial Services Authority (FSA), and the measures call for a full complaints procedure and improved staff training.

Some motoring bodies have questioned the value of the regulations. A spokesman for the Society of Motor Manufacturers and Traders said: "At a franchised dealer where there"s manufacturer backing, it"s an administrative burden that does little to improve customer protection. Maybe there"s more benefit with independent traders."

This was refuted by an FSA spokesman who, quoting the example of a used car warranty, said: "A customer must now be told of unusual exclusions, so will be less likely to find something isn"t covered that they expected would be. They also have the right to cancel after 14 days and use the financial ombudsman in the event of a dispute. This is important new consumer protection."

Our picture shows Bill Barnett from Nottingham, who was told that the 12-year anti-perforation warranty in the Ka"s brochure was a misprint.