Dealing with Extended Warranty Vendors?

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."

Comments

Good advise

[Pan T. Hose]

When you are buying a lot of expensive hardware, calculate the exact cost of that extended warranty and put the same amount of money on an special account. When you buy another hardware, do the same. Then, when anything breaks, pay for it with the money you saved. Most likely than not there will be enough money left to go to disco or whatever kids do these days and you will be glad that you haven't wasted that money on the extended warranty in the first place. Usually it is even less expensive to hire a full time support guy for that money provided you are going to pay more money for said warranty than a full time support guy would cost. This is just like any kind of insurance, most of people pay more than they get.

Dealing with companies who try to screw you

[Noksagt]

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?"

You should fight for the $500, as you can do it with little effort very effectively. Here's what you do, regardless of what company is trying to screw you:

Dig out all paperwork--in this case the original warranty and receipt for the laptop. Also photocopy everything you mail off. If the warranty company answers emails and faxes, use these methods for rapid communication with some amount of papertrail. If not, call them. But log all phone calls & followup with letters. Also cc microcenter on everything. Unhappy customers might mean they lose their contract with microcenter, which they don't want! Hopefully you've done this, as it seems like you're not getting anywhere with them.

Because of this, you should start contacting consumer advocates. This is typically free, aside from postage & quite effective. File complaints against both Microcenter and the warranty company. File complaints with the BBB and the FTC. You should use the local BBB of both companies. Also use a service such as planetfeedback.com to send letters to reps at both companies who might actually have the power and the willingness to fix this for you. These are often addressed to the CEO & if not, you can always write to the CEO yourself. Also contact the attorney general of the state these companies are headquartered in. If applicable, also the US Postal Inspector. Sometimes states also have a Department of Consumer Affairs.

You can reuse your complaint letters for most of these. In the first paragrah, summarize your complaint & what resolution you want. In subsequent paragraphs, give a detailed history with names & dates. In the final paragraph, say again what it is you want. Try to make this about a page. Say that you have supporting paperwork & perhaps include the original warranty, as that seems to be the most relevant piece. But don't flood anyone with papers. Also try to be civil, but firm.

Submit these on the same day & wait about two weeks. You should start to see results in your favor.

I have almost always had success at this point with complaints on behalf of myself, my family, or friends. If not, you do have more options. You can contact the media if you are savvy or even setup your own microcentersucks.com website. This is typically cheap & these businesses do not want to lose business because of a squeaky wheel. This slashdot post is actually a decent start. If you have a friend who is a lawyer, have him send additional correspondance on his letterhead.

If none of this works, go to small claims court. This will cost a filing fee, but you will most likely win & be awarded the money they owe you plus the filing fee you paid. Many companies won't fight a small claim. Those that do in cases like these lose.

Perhaps the most important thing that all of these do is that they start or continue a trail of complaints about shady companies. Microcenter may choose to use a less shady warranty administrator or customers who see complaints to both Microcenter and the warranty administrator will think twice before getting the extended warranty. If you don't do it for the $500, do it for the rest of us!