Extended Warranties

Companies, including manufacturers and third-parties, often offer extended warranties to consumers to ensure repair or replacement of expensive items or home systems. Unfortunately, sometimes consumers pay for these extra warranties in good faith only to find out that the company that offered the warranty will not pay out when needed. Lawsuits have been filed against various extended warranty providers, alleging they operate in bad faith and deny legitimate claims for questionable reasons.

There are situations that void extended warranties. These include failure to properly maintain equipment, misuse of the equipment, pre-existing condition or negligence. Some warranty companies, however, use those valid excuses to deny claims in situations where they may not be accurate. For example, lawsuits against some warranty companies allege claims were denied due to "pre-existing condition" even though the warranty company did not evaluate the appliance in question when the policy was purchased. In other words, the company had no proof of a pre-existing condition.

And in some cases, the warranty being offered might itself be a scam.

Home warranties are offered by companies to cover the cost of repair and/or replacement of appliances and mechanical systems in a home. These extended warranties tend to provide coverage beyond the typical one-year warranty that manufacturers provide. Items or systems that can be covered in a home warranty include heating systems, central air conditioners, pools, dishwashers and ovens.

Lawsuits have been filed against some home warranty companies, such as American Home Shield, alleging the companies violated their contracts with policyholders. The lawsuits allege such companies failed to provide required repair and replacement services, denied claims for reasons that were not legitimate, or otherwise acted in bad faith.

Some companies offering car warranties have been accused of offering bogus warranties that have very limited value, which does not become apparent to consumers until after it is too late to obtain a refund. One such lawsuit was reportedly filed by the Minnesota Attorney General in September 2014, alleging one car warranty company is not keeping its promise of a full refund within 30 days. Often, these car warranties appear to offer bumper-to-bumper extended warranty coverage when in fact their coverage is limited.

Customers who have purchased extended warranties may be able to file a lawsuit if the company that offered the warranty failed to hold up its end of the contract.

Extended Warranty Legal Help

If you or a loved one has suffered similar losses from an Extended Warranty Scam, please click the link below and your complaint will be sent to an Insurance lawyer who may evaluate your claim at no cost or obligation.

Last updated on Dec-29-14