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Dealing with Extended Warranty Vendors?

Posted by Cliff on from the fighting-for-what-you-paid-for dept.

edg176 asks: "I am wondering about other people's experiences with getting Extended Warranty service. I bought a laptop at Microcenter. Got the top of the line extended warranty. Laptop died. I sent it in for service, and the outside repair place, MicroMedic, claims they can't fix it, and the actual warranty administrator is separate from the repair place -- way out in Florida! My warranty says I can get a full refund of my purchase price if the warranty people can't find me an equivalent laptop. They can't, because Microcenter no longer carries the sharp ultralight laptops. Dealing with warranty administrator people, Warrantech has been a nightmare. They won't let me speak to a manager and they keep jerking me around. So far, I've gotten them to agree to give me 1200 bucks store credit, which is still 500 bucks shy of the purchase price. Is it worth fighting them for the last 500 bucks? Does anyone have success stories or tips for this situation? Should I just take the 1200 and be happy I got that much?" "They claim that a 1200 dollar, 4.5 lb laptop is the same as my old 2.5 lb model. The dude on the phone actually claimed that low weight was not a significant feature in a laptop. Right now I have to say I would never do business with these guys again, as they have been relentlessly condescending and obstructionist."

13 of 144 comments (clear)

  1. three words by j0nb0y · · Score: 3, Informative

    small claims court. You paid extra for a service for your laptop, and now when you try to use that service, they are refusing to give you the service you paid for. Extended warranty services are a scam, and going to court is the only chance you have of getting what you paid for.

    --
    If you had super powers, would you use them for good, or for awesome?
    1. Re:three words by LouCifer · · Score: 3, Informative

      I agree. I'd add that I'd call back and ask to speak to a manager again. When they refuse, ask for their info, then ask for the legal department, etc. If the OP's state is one that allows for single-party phone recording (that is, allows him to record the conversation without the other party's knowledge or consent) do so as possible evidence for use in court.

      Then, file suit in small claims. When they fail to show up, I believe you get an automatic judgement in your favor. If they show up, use the tape as evidence.

      I'd pull Microcenter into the lawsuit as well, since they're the ones that used these bastards as their warranty people in the first place.

      --
      Religion is for people afraid of going to hell.
    2. Re:three words by Anonymous Coward · · Score: 1, Informative

      A store manager, while they technically have the authority to write something like that off, will completely take it in the ass if they do. For something like a laptop, go to the company, and have them take care off it. Write a polite by unhappy letter with your contact info. They're going to want to actually talk with a person with that much money involved. It's just the way statistics are tracked for retail outlets. Asking the local store to take that would be a real kick in the nuts, particularly since it's entirely a corporate decision. If the company is a good one, chances are they'll want to make it right. Especially, since this guy is completely in the right, I can see them wanting to do something for him laptop wise, even if they have to go through something irregular. (They could have a suitable laptop drop-shipped to him through one of their suppliers, and they might have a special sku for such inventory emergencies, or they could create one fill it with one laptop that drop-shipped to him and take it out of the ass of the company who's warrenties they're selling (if they're still selling them.))

      This is a *big* customer service problem for them. Fixing it so that it doesn't go really bad is probably worth more than $1700 to them, and certainly more than $500.

    3. Re:three words by Anonymous Coward · · Score: 1, Informative

      Completely aside from whatever the local businessmen have pushed through state law, as a practical matter, you can record yourself in any business conversation. Just don't lie to the guy if he asks if it's being recorded.

      Most of these places have a message that tells you the call "may be monitored for your own good" or some shit when you ring them up. That covers your ass. THEY are recording it, so you have a right to also.

    4. Re:three words by jadenyk · · Score: 2, Informative
      I've actually legally recorded a call before and typically, if you begin the conversation with something like:

      "My Name is {your name here} and I'm calling about {put a long sentance about your problem here} and I'm recording this call for legal reasons."

      They'll typically say "ok" and move on with the problem, probably not even registering what you said. In my situation (the states I was dealing in) all I had to do was notify them - I didn't need them to acknowledge it at all. Talk fast, but make sure it's clear on the tape.

  2. Best Buy by dmayle · · Score: 3, Informative

    As much as extended warranties are usually a ripoff, there are certain things I go along for just because I don't want to deal with suddenly not having them. PDA's are like that. I want a replacement immediately if I've got a problem with my PDA.

    That being said, Best Buy has been very good to my friends and me with regards to warranty service. I had a friend with a similar issue to yours, and she was given a brand new laptop two years after hers kept going in for repais on the same problem. (The CD drive kept dying on a Toshiba laptop)

    1. Re:Best Buy by Anonymous Coward · · Score: 2, Informative

      Having worked for 'Worst Purchase' in their Service Department, I can state the exact opposite:

      Not only do they encourage employees to find ways out of repairing/replacing products, but you'll find that when a repair is actually warranted, it'll be executed by a monkey who does not belong 'under the hood' so to speak ...

      Set 20% more than the cost of their plans aside in an interest bearing account everytime you buy something like this. You'll come out ahead in the long run.

  3. Lesson by duffbeer703 · · Score: 4, Informative

    Don't by an extended warranty from a retailer. Ever.

    When I worked at a CompUSA in college several years ago, Warrantech warranties were sold at a 75% margin, which translates into a major ripoff.

    If you feel that you need an extended warranty, buy one directly from the manufacturer. I don't know about Sharp, but Toshiba and IBM offer comprehensive service plans that include 24hr turnaround service for about half of what a third party warranty costs.

    --
    Conformity is the jailer of freedom and enemy of growth. -JFK
  4. Economic Lesson by 4of12 · · Score: 3, Informative

    Re: insurance


    For things like car collision insurance, product warranties, etc., if it is within your means it is always less expensive to self-insure for loss and damages.

    I read once where those lucrative extended warranties that get hawked at consumer electronics stores, the ones that bring in great commission to the sales person, to the store and to the insurer, typically have to pay out about US$1 in claim settlements for every US$11 that is collected. I'm not even sure if the salesperson commission or store commission is included in that figure. Either way, it should tell you something about the risks and probabilities that are involved.

    Exhibit A: about 3 years ago my S.O. wanted to pay $4/month for insurance on our cell phone and when she brought it in to be replaced about 2 years later because the antenna had predictably gotten bent, wouldn't stay extended, etc. (insert joke) she was informed that that particular malady was not covered. So we'd paid about $100 for peace of mind that was a delusion.

    Exhibit B: When I recently purchased an expensive LCD flat screen TV and I reluctantly agreed to look into the extended warranty because of the infamous "dead pixel" issue, I asked the store for a clear statement of exactly what the extended warranty covered since I'd heard of disreputable places that would exempt dead pixels in the outer third of the screen from coverage, up to 10-12 pixels, etc. Despite their enthusiasm for selling the extended warranty, they never did get me a copy of the policy, we didn't get the extended warranty, saved $1000, and been happy as clams with the TV.

    --
    "Provided by the management for your protection."
  5. AT HIGH TIDE (OT) by A+nonymous+Coward · · Score: 2, Informative

    been happy as clams with the TV

    As happy as clams AT HIGH TIDE is the proper saying. Why do so many people think clams are happy all the time? It is when the tide comes in and keeps the predators from digging them up that they are happy.

    That's even assuming clams can be happy, but I'll leave that for some other pedantic.

    --
    Infuriate left and right
  6. Two words: Attorney General by axoi · · Score: 2, Informative


    You don't mention if you're in the US, but most US cities have an Attorney General that you can speak with that will answer most of your questions regarding transactions like this. If nothing else your attorney general will be able to point you in the right direction of who to contact about this.

    Look them up under your local government yellow pages. There might also be a consumer advocate group that you might want to speak with.

    If the contract states specific resolutions and they are not being met then it is fraud and open for litigation.

  7. Re:Dealing with companies who try to screw you by ivan256 · · Score: 2, Informative

    If none of this works, go to small claims court.

    This a great option, as the filing fee can usually be $30 or less but there are two things you should be aware of before you try this:

    Most extended warranty contracts have an arbitration clause. That means you gave up your right to sue and instead will have the claim decided by an arbitration service that the company selected and pays.

    Once you win in small claims court the initial burden of collection is on you. If you can't extract your money from the defendant, there are remedies you can ask the court for, but most aren't too helpful on business that don't own property in your home state.

  8. Re:Dealing with companies who try to screw you by Noksagt · · Score: 2, Informative

    Filing fees vary greatly. In Chicago, it would cost about $75 to file this claim. In other districts, I've seen it be less than $20.

    When you win, many courts also order interest start accruing on what is owed you. Chicago has a 9% APY. If the company isn't going to go bankrupt (and, in this case, the seller is a very large company), they will usually pay you off immediately, lest they suffer these penalties. Collecting from businesses isn't bad, but you are right that it can get tricky. While you can and should file a small claim & represent yourself, you might want to retain an attorney to help you actually get the money if you have problems.