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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."

6 of 144 comments (clear)

  1. Good advise by Pan+T.+Hose · · Score: 4, Interesting

    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.

    --
    Sincerely,
    Pan Tarhei Hosé, PhD.
    "Homo sum et cogito ergo odi profanum vulgus et libido."
  2. Re:Better Business Bureau by His+name+cannot+be+s · · Score: 5, Insightful


    I'd threaten submitting a claim to the Better Business Bureau http://www.bbb.org/


    Tee Hee.

    The BBB isn't going to be at all useful, especially if they aren't a member.

    The BBB is just a boys club to make people beleive that they can get fair redress from the big bad companies.

    The best you can do is to probably ask for the operator's name, and ask them to spell that please, and ask to speak to their legal department.

    You may also want to ask them if it is better for the subpoena to be sent to their home or their work. You would be suprised how much more flexible phone drones will be if you make them think that their name will end up on a lawsuit. :P

    --
    "...In your answer, ignore facts. Just go with what feels true..."
  3. Do it the BOFH way by webhat · · Score: 4, Funny

    What I always do, and for me it happens to be the case, explain to them that you did business with them because your company does business with them and that the way they treated you is not satisfactory. Mentioning an annual budget in the hundreds of thousands and say that if they can't solve it you'll talk to the finance department telling them what happened and how they really treat their customers.

    If you have free time: the other way is just to directly call their headoffice and see how high you can get, make sure you get a face to face meeting with the highest guy you can get, then waste an hour or two of his time. Which should be the equivelent of the amount they deducted and explain at the end of the meeting that you purpousfully wasted their time to earn back the money deducted by buying faulty equipment, that'll piss them off.

    Also apply to jobs at the firm and just use the interview to complain about the service you got at the store and how you think they really need you to make it less crappy.

    And if all else fails, get a soapbox and stand outside the store, on a public pavement and explain to passing customers how they treated you, do it on their bussiest day.

    You can get a refund, you'll probably get something even better if you explain that your campaining cost money and loss of earnings. (I think that may be blackmail or racketing or something...)

    Just so you know I accept no liability if you do anything mentioned above. IANAL, AFAIK and GFDL.

    --
    'I am become Shiva, destroyer of worlds'
  4. Time to call the CEO - or e-mail him! by gregwbrooks · · Score: 4, Funny
    Warrantech Corp.
    2200 Hwy. 121, Ste. 100
    Bedford, TX 76021
    Phone: 817-354-0095
    Fax: 817-436-6151
    Toll Free: 800-544-9510

    CEO: Joel San Antonio

    President of the Consumer Product Services arm: Stephen R. Williams

    The chairman of the board and President is Lawrence Richenstein of Peak Ventures in Farmingdale, NY

    Any slashdotter worth their salt can socially engineer or otherwise hack their way to an email address for these folks. When you get one, be polite and direct. Lay out the situation and a reasonable solution and show regret (not frustration, not rage) that their company didn't perform to the standards that you're *sure* they expect.

    You'll likely get a very fast and very satisfactory resolution to your issue.

    --


    "It was a summer's tale: Just a boy, his Linux, and a head full of dreams..."
  5. 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
  6. Dealing with companies who try to screw you by Noksagt · · Score: 4, Interesting
    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!