A COUPLE say they have been threatened with legal action by Northern Electric, after they refused to fork out for a warranty which they claim they were twice told had been cancelled.

Deborah and Ian Smith, from Gate Helmsley, near York, are fighting the gas and electricity giant after the company said it would take them to court over a warranty agreement.

Deborah said they bought a dishwasher from Northern Electric at Clifton Moor in December 2001 on a "buy now pay in 12 months' time" deal.

Deborah signed an extended warranty deal, but claims she was told she could cancel if she had second thoughts.

She did so and believed the matter to be settled. But she was horrified to learn it had not been cancelled and again contacted the store.

Deborah claims she was again told it was possible to cancel the "sure care" agreement and she paid off the balance for the dishwasher. But she said she received another telephone call from Northern Electric demanding payment.

Deborah said she has now received a letter threatening her with legal action unless the debt, now with Clydesdale Financial Services, is settled.

Deborah said she was disgusted that she was being put under pressure after two verbal agreements that the warranty had been cancelled.

She was told if she didn't pay immediately she would owe £267.59 - £20 more than the cost of the dishwasher.

A Northern Electric spokeswoman said its staff had been trained to inform customers they could not change credit agreements via phone calls.

Deborah said: "We have contacted trading standards officers who have told us that we have a case.

"I am very angry. I am stuck with this bill after twice being told that I would not have to pay. I wrote a letter to Northern Electric, but the reply they sent back answered none of my questions."

In her letter she wrote: "I feel very strongly that your company has behaved in an improper way towards me both in mis-selling and ignoring any of the conversations that have taken place."

The Northern Electric spokeswoman said: "This is a legally-binding credit agreement that has been signed.

"The warranty clearly states that she has 28 days from purchase to alter the agreement.

"There is nothing we can do. I can't see how anyone would say that it was 'cancelled'. There is no way you can just cancel it (over the phone)."

Updated: 09:20 Thursday, April 10, 2003