Financial regulators are investigating the collapse of a car warranties firm which they say has left some customers with worthless policies. A BBC Wales investigation found some policies sold by Motorcare Elite (2008) were not backed by underwriters. The Llantwit Major-based firm was set up by Harby Panesar, who appeared on TV when he spent a reported £20,000 on his daughter's birthday party. Now bankrupt, he insists the policies were properly underwritten. The BBC Wales consumer affairs programme X-Ray found that Motorcare Elite (2008) sold car breakdown warranties to car dealers who sold them on to consumers. The company said they were backed by insurance underwriters, but after the firm collapsed it emerged that some policies were not backed by insurance and were worthless....Read more here--: BBC News - Motorcare warranties firm collapse leaves customers out of pocket