Consumer rights: The fridge didn't work and the service melted

The rights of consumers when an appliance is faulty and suppliers are unresponsive ... And how best to invest a redundancy lump sum

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Q. I bought an Indesit fridge freezer from Appliances Online, which didn't work. In trying to get it fixed I have taken days off work waiting for engineers, and spent countless hours on the phone to customer services people, and got nowhere.

After I reported the problem, Indesit sent an engineer who thought it must be the thermostat. After a week's delay, another engineer came and fitted a replacement thermostat, which didn't work. He then said it must be the compressor. After a further week's delay, I was informed by the engineers that the compressor they had been sent was missing some parts. Three weeks after the original visit, the same engineer came out and found that the fault was none of these things. Indesit has now agreed to replace the fridge, but will not tell me when.

I tried going through Appliances Online, but to no avail. I am exhausted by the whole process. Who is responsible – Indesit or Appliances Online – and how can I get my fridge?

SF, London

A. For some reason, this stream of engineers misdiagnosing fridge problems seems to be commonplace. I would have thought fridges had relatively few working parts and so problems would be easy to diagnose, but the engineer who gets it right first time is apparently a rare beast. If I were being unkind, I might suggest this was down to poor training and the manufacturers' habit of outsourcing repairs to disinterested third parties.

As to whether Indesit or Appliances Online is responsible, Frank Shepherd of advice service Consumer Direct says: "In general terms, your contract is with the retailer rather than the manufacturer. Under the Sale of Goods Act, you have the right to claim against the retailer if a product is not of satisfactory quality, fit for purpose or as described. We would normally advise people to claim against the retailer in the first instance.

"But for some products, including white goods, you will often be given a free manufacturer's warranty. If you wish to make a claim – for example, for a repair or replacement – both you and the manufacturer will be bound by the warranty's terms and conditions."

Indesit has finally come up trumps and the fridge has now been replaced. It has also given you a free extended warranty so that problems can be dealt with more efficiently in future. It has apologised and claims it is able to repair over 80 per cent of cases on the first visit (which does not chime with my experience).

It says delays were incurred due to the model being out of stock when the initial complaint was made, and the model was delivered once the stock was available.

Appliances Online has yet to respond to our enquiries.

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Q. I have just received a large redundancy payment, but my prospects of getting another job in the short term are not good and I don't know how long I will need to live on it. Given that interest rates are so low, can I invest the money to generate an income without taking too much risk?

FD, London

A. This is a common dilemma at the moment as the economic crisis swells the ranks of the unemployed. Unfortunately, if you need the capital, you have little choice but to keep it in a cash savings account.

Bruce Wilson, managing director of financial advisory group Helm Godfrey, says you should put your lump sum in two savings accounts that are underwritten by the Government's compensation scheme, so you can draw on the capital as you need it. You are right in saying that rates are pathetically low at the moment, with many accounts paying just 1 per cent. But Mr Wilson points out that if you are prepared to deposit the money for six months to a year, returns can be significantly higher. He says this is worth considering for half of the capital.

He also suggests the cash might buy you time for reflection: "You could relax, take a break and think about what you really want to do – finding a job where you can apply your skills and which you really enjoy. It is then a question of searching out those opportunities and recognising that in the current market it might take some time."

You need to buy yourself as much time as possible, so examine where any savings could be made in your expenditure and look at any debts you could now pay off out of the redundancy sum. Should you need specific advice, Mr Wilson suggests you look for a certified financial planner from the Institute of Financial Planning (www.financial planning.org.uk), who will be able to help you on a fee basis.

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Q. We bought a TV from Comet in May 2006 for £1,800. We did not take up the offer of an extended warranty. On 15 November 2008 the TV failed, resulting in total loss of the picture. On 17 November we contacted Comet, to be told it couldn't do anything as it was out of warranty. The manufacturer was equally unhelpful.

Comet eventually offered to send an engineer and some farcical to-ing and fro-ing ensued: the engineers had brought the wrong equipment, they couldn't diagnose the problem etc. We took several days off work and at one point they even tried to make us pay a call-out charge.

Eventually Comet said we needed two modules, costing £177. We paid up. The arrival of the parts was put back twice. We have had to do all the chasing and feel very badly let down.

VB, Herts

A. The warranty is a red herring, but one that is often used by retailers. Under the Sale of Goods Act, products have to be "fit for purpose and of satisfactory quality", whether you have a warranty or not. It is reasonable to expect an expensive TV to last longer than two and a half years. After the first six months, however, the onus is on you to prove the TV had an inherent defect.

Fortunately you now have your TV back in working order. Comet has apologised, admitted its service was shoddy and said it has taken action to improve it. This is far from the first time that Comet's service standards have come under the spotlight. It has also offered to reimburse any expenses and has sent you £50 as a goodwill gesture.