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extended warranties

lawsuits

$54 Million Best Buy Lawsuit Over Lost Laptop Dismissed

Raelyn Campbell's $54 million pro se lawsuit against Best Buy over her lost laptop was dismissed on a procedural issue, thus showing the difficultly of suing a big company for a lot of money without a real lawyer. The trouble all started when she sent a laptop in for repairs to Best Buy, who lost it gave her the runaround for months, and then tried to buy her off with a $900 gift card. They later upped their offer to $1,100, but Raelyn decided to make 'em pay for all the lost photos and tax returns and the potential privacy invasion, and, to get big headlines, went for $54 million. She got some decent press, including a Today show appearance, but no money. In fact, she also had to pay the other side's legal fees, all two hours worth. I think she got what she was looking for, though: the satisfaction of getting Best Buy's name in the national spotlight for their tendency to let customers' laptops get lost and not really care about it. You can read the docket here.

$54 Million Lawsuit Against Best Buy? Poof, Gone [NAM] (Thanks to Wade!)
PREVIOUSLY: Woman Sues Best Buy For $54 Million Over Lost Laptop


insiders

7 Confessions Of A Sears Electronics Salesperson

A Sears electronics salesperson has generously offered to share some insider knowledge of how the game is played at Sears. Inside you'll learn why you shouldn't buy the extended warranty, why the salesperson keeps steering you towards one certain brand, and the pricing codes that tell you whether or not you're buying a discontinued product. Enjoy!
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warranties

LEAKS: Best Buy Internal Doc Says Their "Extended Warranties" Are A "Myth"

An internal Best Buy training document sent to The Consumerist reveals Best Buy's position on the "Extended Warranty" debate. Best Buy says they don't sell those pesky "extended warranties" that get so much bad press— instead they sell "performance service plans." The document also instructs Best Buy employees on how to sell these warranties to Upscale Suburban "Barry" and "Jill." It's important for consumers to be familiar with these tactics so they are able to recognize them while shopping in a high pressure sales environment such as Best Buy. Understanding the sales pitch puts you on equal ground with the salesperson. More »

stupid

Microcenter Tries To Sell You A Replacement Plan For Thermal Adhesive

Reader Joe says:
Monday I bought 1.75 grams of thermal adhesive at Microcenter for $2.99. At checkout I was asked if I wanted to buy a replacement service plan. I was dumbfounded.
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retail

Making Price Drops Conditional On Extended Warranty Purchase Could Be Illegal

A few days ago we wrote about haggling at retail stores and how some sales people will cut you a deal if you get the extended warranty, since they earn commission off selling those. Well, reader Stephen writes:
In Michigan at least, it is illegal for a rep to base a price reduction on the purchase of an extended warranty. A few years ago, I was buying a returned Tivo from Best Buy, and the SA tried to tell me he'd give me a better price if I bought the plan. I stopped him right there, told him I knew that this was illegal and that he knew it too. Suddenly the lower prices was no longer conditional on the purchase of the extended service plan.
Something to remember next time you're wrangling over that HDTV. Michigan's statute, inside... More »

cars

Extended Car Warranties Are A Ripoff

Most consumers spend more on extended warranties than they get back in repair savings, according to a Consumer Reports reader survey. On average, buyers paid $1000 and got $700 back in the amount of money they saved in repair costs."Extended warranties sell costly 'peace of mind' for repair nightmares that probably won't occur," said Rik Paul, automotive editor, Consumer Reports. "Sellers know what tends to break, and in most cases consumers are betting against the house." The only one with a peace of mind is the dealer as he tallies up his profits. Consumer Reports instead recommends putting the money you would have spent on an extended warranty into a money market or mutual fund to insure against the unlikely event of big repair costs from parts failure.

complaints

Woman Sues Best Buy For $54 Million Over Lost Laptop

Raelyn Campbell is suing Best Buy for $54 million for losing her laptop and lying to her for months about it. She bought a laptop from Best Buy with an extended warranty, it broke, she sent it in for repairs, months later she didn't have her laptop and after getting the runaround the store finally said it had lost her laptop and offered her a $900 gift card. She paid over $1,100 for the laptop, she paid for software on it, and it had irreplaceable photos, music, and personal information, including her tax returns. She freely admits she chose the high figure to attract media attention. She tells the Red Tape Chronicles "I can't help but wonder how many other people have had their computer stolen (or) lost by Best Buy and then been bullied into accepting lowball compensation offers for replacement expenses and no compensation for identity theft protection expenses." She also has a blog.

A Lost Laptop, A $54 Million Lawsuit [Red Tape Chronicles]


warranty

Wickes Furniture's Stupid Warranty

Reader Dustin writes in with a slimy customer service experience at Wickes furniture. The upshot of the story is that the salesman tacked on a 3-year extended warranty without asking Dustin if he felt the need to insure his furniture against "manufacturing defects" to the tune of $89.99. More »

consumer reports

Consumer Reports Warns Against Extended Warranties

Consumer Reports has an excellent article this morning warning against the fraud that is the extended warranty. From the article: More »

youtube

Don't Be This Consumer

This kid bought a video ipod from Best Buy, along with a $100 extended warranty. A few months later, it started getting slow and glitchy. He took it back and got pissed because Best Buy told him to mail it in, on his "own dime," on the Apple warranty. More »