Is everyone's warranty a scam

Started by peternap, July 26, 2012, 11:17:21 AM

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peternap



Is everyone's warranty program a scam these days?

Yesterday I had an issue with Best Buy over an extended warranty. I won that one but it took a couple of hours and untold phone calls.

Weeks ago .....

I sent one of my GH2's in for warranty service because the LCD had developed a white spot. Not a cracked LCD ( did that on a Canon once), just a blemish on the screen.

I got a call from them telling me they had received it. Weeks later (today) I called to see what the status was. First they said they had no such work order as the number I gave them. Some colorful language later, they found it, then said no proof of purchase, more colorful language and they found that.

Then they said they were waiting for my authorization to fix it for $325.00 because there was physical damage.There was no physical damage to that camera.. and more discussion that will necessitate me gong to church on Sunday.

I finally told them to box it up and send it back to me in the same condition they received it.

I really get sick of this. If they had come up with something legitimate (Like it was hacked..which I removed prior to sending) there wouldn't be much I could say about it, but to say there was physical damage is just a shady way of avoiding the warranty.

Repairs and warranties are important to me so despite the great performance of the GH2's, this will be my last Panny. The newest one I have is still under the 90 day return window so that's going back in the morning

I'll buy something else to replace it.

Boy that makes me mad!
These here is God's finest scupturings! And there ain't no laws for the brave ones! And there ain't no asylums for the crazy ones! And there ain't no churches, except for this right here!

muldoon

warranties are only as good as the company that provides them.  Looking at most corporations today, basically yes, it's a scam. 

It's a formula, if the repair costs x, and the people affected are y; x*y = their cost. 
Now that's the first part, the second half is a bit fuzzier but they definitely have the ability to formulate this.
Does the loss of return customer business * y + cost of reputational impact outweigh the first number?

If so, warranties can be good and honoured. 
If not, they find a way to weasel out of it. 

So, while some warranties may be honoured some of the time, yeah - it's pretty much a scam. 

-- In my opinion, if the device is less than 5k, I would not consider paying any additional for any type of warranty. 


Native_NM

I dont normally buy them - but did for two large items.  One was a big screen.  The other a $3000 fridge.   The TV power supply failed after three years.  It was a plasma, and Best Buy ended up giving me a nicer TV as they didn't stock plasmas any longer.  The fridge was a Kenmore Elite, made by Samsung.  The fridge worked great, but we had problems with the electronic LCD screen.  They came out once and repaired it, and it went on the fritz again.  I called them and told them they could either give me a new fridge or I was going to call them for a repair every single month for the next five years.  They gave me a better fridge which has not given us any problems.

The only other experience I had was Harbor Freight.  I bought the warranty on a $75 item for $5.  I went in to get something else, and noticed the item was on sale.  It had died and I kept meaning to return it, but always forgot.  I mentioned it to the clerk and she said they could look it up by my name and Inside Track card.  They put me on the phone, which took a while, but they found the item, and it was still under warranty.  Even though I didn't actually have the defective item, she gave me the new one and told me to just bring the old one back next trip, which I did.  The lesson is that I spend too much time at HF and they know me by name, and that if you are willing to wait on the phone, they honor their warranty.

I know firsthand from a relative at a company associated big-box store that more than 1/3 of the time people who buy the warranties don't register the product or save the receipt.  She also said they could offer rebates of 100% and there would still be people who would buy the product and never send in the rebate.
New Mexico.  Better than regular Mexico.

peternap

Well, Best Buy is out. I'll never deal with them again.

Panasonic is causing me problems. At the moment, they simply make the best cameras for video in the under 10,000.00 price range.

The GH2's are fairly inexpensive under $800.00 each and are borderline Professional. The CONSUMER Division handles them and that's what has the worst reputation. I returned one GH2 that was still in the return window. I'll just use the other one as is.

I had canceled an order for a $4,500.00 AF-100. I found the Broadcast Division handles the Pro Cameras and I haven't heard anything but praise for them....so I re-ordered it tonight.

I always buy the Harbor Freight warranty and they always honor it.
These here is God's finest scupturings! And there ain't no laws for the brave ones! And there ain't no asylums for the crazy ones! And there ain't no churches, except for this right here!

rick91351

Does Best Buy underwrite their insurance?  If they do it certainly goes hand in hand with some of the other items in the news about them.  Stores closings, people being laid off and such.  But there is a ray of hope.  There is talk of opening mobile stores.  Trailers they will set up at events, concerts, fairs and festivals.  YA BABY! You think you cannot get costumer satisfaction now how about buying a tablet and go to take it back.  Well they were here a week ago...... [waiting]   
Proverbs 24:3-5 Through wisdom is an house builded; an by understanding it is established.  4 And by knowledge shall the chambers be filled with all precious and pleasant riches.  5 A wise man is strong; yea, a man of knowledge increaseth strength.


peternap

Quote from: rick91351 on July 30, 2012, 12:30:44 AM
Does Best Buy underwrite their insurance?  If they do it certainly goes hand in hand with some of the other items in the news about them.  Stores closings, people being laid off and such.  But there is a ray of hope.  There is talk of opening mobile stores.  Trailers they will set up at events, concerts, fairs and festivals.  YA BABY! You think you cannot get costumer satisfaction now how about buying a tablet and go to take it back.  Well they were here a week ago...... [waiting]   

I hadn't paid any attention to the news Rick, but I did think it was funny that they took all the cash registers out and were doing all the check out's in Customer Service.
These here is God's finest scupturings! And there ain't no laws for the brave ones! And there ain't no asylums for the crazy ones! And there ain't no churches, except for this right here!