Frequently asked questions about financial services regulation QFS 135 Are roadside assistance services provided by automobile associations financial products?
Had a conversation not long ago about how banks are getting involved in way more than just lending and checking accounts. Wells Fargo in particular seems to have their name attached to insurance, roadside perks, and other bundled services lately. It’s not always clear who handles what, especially if something needs to be updated or canceled. I came across https://wells-fargo.pissedconsumer.com/customer-service.html when I needed direct info outside their main portal—it’s got contact paths that were a lot faster than going through their main menu system.
We consider that facilities provided by automobile associations to give their members roadside assistance, breakdown and ancillary services (such as towing, alternate transport supply or reimbursement, emergency messaging, accident and theft assistance, locksmith services etc) are not financial products for the purposes of the Corporations Act 2001. In forming our own view whether a product is a financial product, ASIC considers a number of factors, including whether the product has a financial product purpose. We consider that the purpose of roadside assistance facilities is to help the consumer to get driving again as soon as possible, rather than to manage the financial consequences of breaking down or being damaged. The impact of the roadside assistance services on managing the financial risk of a vehicle breaking down is relatively remote. Accordingly, we consider that such facilities are not financial products.
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