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GE Warranty By Any Other Name Still Smells

By Ed Foster, Section The Gripelog
Posted on Thu Apr 05, 2007 at 01:19:05 AM PDT

Too many cooks spoil the broth, and perhaps the extended warranty as well. That's what one reader has to conclude after seeing Good Guys, CompUSA, and GE all fail to honor an extended warranty on an expensive plasma TV.


"I have a relative I'm helping who bought a Sony plasma TV almost three years ago," the reader wrote. "He paid over $10,000 for the TV plus an additional $1,700 for an extended warranty from what at the time was a Good Guys store. The TV, which is still in the extended warranty period, now has burn-in along with color noise, according to the diagnosis from the repairman that was sent out to look at it."

Since the purchase, however, that particular Good Guys franchise was acquired by CompUSA. Further complicating the issue is that the extended warranty Good Guys sold him is serviced by GE, making it hard for the reader to figure out just who is responsible for honoring his relative's warranty. "I talked to the folks at CompUSA, and they told me to call the Good Guys' toll free number. The folks at Good Guys got in touch with GE and they were the ones who sent out the authorized repair rep who diagnosed the problem. He said that they would need to talk to GE as to what exactly is covered. My relative got a call back from the repair rep who told him that to repair it would be $3K ... and GE said they were not going to cover it."

Of course, $3,000 can buy a lot more plasma TV now than it could three years ago, so it would be absurd for the reader's relative to pay for the repair bill that GE is claiming. But isn't the whole idea of an extended warranty that the customer not be placed in a position like this? And why should GE be the one to decide what damage it will or will not cover? "Is an extended warranty worth the extra expense?" the reader writes. "No. The moral of this story is save your money, especially if GE is the one doing the repairs."

What worthless warranty stories do you have to tell? Write me at Foster@gripe2ed.com or phone the Gripe Line voice mail at 1 888 875-7916.

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GE Warranty By Any Other Name Still Smells | 11 comments (11 topical) | Post A Comment
Isn't this an insurance policy???[ Reply to This ] (none / 0) (#1)
by BUL2294 on Thu Apr 05, 2007 at 12:27:02 PM PDT

While I can't speak for this guy's extended warranty, the ones that I've come across (and sometimes bought) from Best Buy are all "underwritten" and mention they are, in fact, insurance policies. If that's the case here, I'd go and file a complaint with the state's insurance regulating authority. In Illinois, complaints against insurance companies are publicly available (on a website for free), so companies have an interest in not being named in such a public fashion.

Personally, my next step would be to get the TV replaced (which is probably what needs to happen anyway) and take the retailer or GE to small-claims court for the replacement cost. (Not sure who should be sued). Even if the retail store is no longer there, this guy should be able to take the corporate office to your local small claims court since they did have a presence in the city/county when they sold the TV.

One other thing about GE... It's such a huge, pointless company that I'd also try re-submitting the claim again. Chances are you'll get a different call center where the wind is blowing in a different direction with someone more willing to help. GE's systems are so massive, duplicated, and overlapping (yes, I worked for GE) that while one call center may disapprove of the repair, another may approve...

[ Reply to This ]



I'm probably going to get flamed for this, but....[ Parent | Reply to This ] (none / 0) (#2)
by Grimalkin on Thu Apr 05, 2007 at 01:43:05 PM PDT

There's a lot that's going unsaid here. I'm guessing that GE is stating that the burn-in and color noise is "normal wear and tear" for that technology purchased at that time. This is more true than we may care to admit. Having specified many plasma displays and monitors over the last few years, I can honestly say that virtually all units installed less than 24 months ago now have noticeable burn-in and picture degradation if they have been in heavy use and the user has often had logos/menus/crawlers on the display for extended periods. Frankly, while I sympathize wholeheartedly with the owner, I find it almost amazing that someone would spend a total of over $11,000 on a relatively new technology some three years ago and then want the unit brought back to its original state, even after known problems have come up. Even if GE provided an identical, brand-new unit to replace the one he has, the problem will most likely be back in another three years. Face it...auto paint fades, tires wear out, and (older) plasma screens burn-in and wear (more than newer ones).
Zonex, North Carolina
[ Parent | Reply to This ]


Snake Oil Salesman[ Parent | Reply to This ] (none / 0) (#3)
by partan on Fri Apr 06, 2007 at 09:30:57 AM PDT

I believe that Plasma TVs are a big waist of money.  There's so many things that can go wrong with them and they wear out so easily.  You also need to have them serviced about once a year as well.  I think that the best TVs out now are DLP.  This is projection TV with a brilliant picture and small form factor.

As far as extended warranties, I've never seen one that was all inclusive.  In fact, there is usually a list of parts covered and/or not covered a mile long.  Most people don't know enough about Plasma TVs (or any other complicated electronic device) to know what parts are expensive or wear-out quickly.  The warranties seem to be written to take advantage of a person's lack of knowledge.

I always thought that technology was supposed to make our lives easier and more comfortable, but it seems more and more that companies are trying to stick it to their customers.  Instead of keeping things simple, most of us get lost in all the technical details.  Companies today, take advantage of this fact more often then not.

[ Parent | Reply to This ]



POS extended warranty[ Reply to This ] (none / 0) (#4)
by jabba17 on Tue Apr 10, 2007 at 06:51:01 PM PDT

99% of the time an extended warranty is a POS. The only time I would buy one is if I was buying a TV with a bulb in it (DLP, etc.), the warranty covered the bulb, and the warranty cost less than the bulb.

I bought a VCR at Costco for $79. Toshiba (the manufacturer) actually had a form in the box to buy an extended warranty for $79.99. ROFLMAO!

Anyone wanna bet that the GE extended warranty has an arbitration clause in it?

[ Reply to This ]



Whose on first?[ Reply to This ] (none / 0) (#5)
by kamnet on Fri Apr 13, 2007 at 08:33:32 AM PDT

Based on what I've read, looks like GE is the one responsible for upholding the extended warranty. If they balk at honoring the extended warranty, then start playing hardball now.

File the complaint with your state attorney general's office. And, not trying to be judgemental, if your relative can afford a $10,000 TV, then they can probably retain competent legal council as well. Might wanna pay one for some extra muscle, although the AG should be muscle enough.

[ Reply to This ]



Extended warranties almost always stink...[ Reply to This ] (none / 0) (#6)
by Paul Sherman on Mon Apr 16, 2007 at 10:28:18 AM PDT

None of the story surprises me, I've dealt with extended warranties and service contracts (they're identical for all practical purposes) for almost 30 years. And that included trying to sell them. The only party they're effective for is the seller. A hint, they won't sell a service contract if there's not at least 30% pure profit in it. Currently I work in a healthcare system dealing with medical equipment. If ever there was a segment where extended warranties might work, this would be it. And guess what - they don't work there either. Even if the work isn't done in-house, it's cheaper (and just as fast) to call in as needed. And for cost comparison - the average contract for medical equipment runs ~ 8%/year. Consumer contracts often run double that. For me, it's pretty hilarious to hear some poor floor salesman at a store try to convince me that the extended warranty is a good idea. (Especially since I've been dealing with those contracts longer than he's been alive).

[ Reply to This ]


yes[ Parent | Reply to This ] (none / 0) (#14)
by maderikapapa on Sat Jun 28, 2008 at 01:08:07 AM PDT

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[ Parent | Reply to This ]


Dell's Warranty Worthless[ Reply to This ] (none / 0) (#7)
by Rey on Mon Apr 16, 2007 at 03:34:33 PM PDT

My daughter's $2400 desktop Dell for college was expected to last 4 years, and was covered by an extra-cost, 4 year in-room warranty. The PC lasted from September to January of her freshman year before the Hdrive failed. 4.25 months.

The drive was warranteed for 12 months by Dell and by Western Digital -- but Dell refused to admit the drive was bad despite all the evidence. On top of that the drive was one of a huge bad run of WD Caviar drives everyone knew about, including me. So I had it in writing Dell would NOT use this drive on the machine!

The never came to service her machine, not ever. What they did was tell her to re-format the drive and re-load Windows. They told her to do this more than a dozen times, and she did it, all under the SAME incident number - so they knew. Then she became disgusted and brought the PC home to me.

After Dell gave me the format-and-install run-around three times, I threatened suit for fraudulent warranty. Then they sent someone. He installed ... a new Western Digitral Caviar drive! It lasted 45 days before a massive failure.

I returned that one to WD under their warranty, put the replacement drive they sent up on eBay, and bought a better drive for the Dell. Not much point to that. Daughter would never touch it again. She went through Kenyon using the desktops they provided in the dorms.

Maybe I've been lucky, but in 70 years I've never dealt with a worse company than Dell.
Rey in Virginia
[ Reply to This ]



Another warranty story[ Reply to This ] (none / 0) (#8)
by mklange on Mon Apr 16, 2007 at 05:00:43 PM PDT

In 2000, our house took a lightning strike that took out the satellite dish receiver, VCR, TV, computer modem, parallel port, and HP Laser printer. When replacing the equipment with new parts, I asked whether lightning damage was covered before purchasing the extended warranty since I had only been in the house for 1 year and didn't know if this could be a chronic issue.

Best Buy touted their "no-lemon" warranty policy, indicating that if anything required more than 3 repairs, it would be replaced. The Philips TV I bought failed the first time within 1 year. The warranty covered the failure, holding to their word to do in-home pickup. Second failure was about 9 months later under the extended warranty. Third failure came about 6 months later. Now, each time, the failure required about 1 month or more before the required repairs were completed, so this was not a very satisfying experience. After the TV failed a fourth time, it was time to call in the "no-lemon" policy. Spoke with one of the warranty droids who assured me it would be taken care of. After several weeks, called again, got the story that they didn't have all of the service records. Sent them fax copies. A few more weeks (all this time I don't have a TV, and the repair shop has a boat anchor taking up space), call again, now they only have 2 of the 3 required records -- send the third one again. More weeks of waiting, finally (note: I'm always the one doing the calling, they never provided any information or requests for information on their own accord) call again, get told that the set will not be replaced because "no lemon" does not apply. WHAT!?? The records indicated that on one of the failures, no soldering had been done, thus this did not count as a repair. So, after several months of watching a 20+ year old 19" TV, they finally authorized the repair center to perform repairs (local repair company said they had their tech touch every solder joint just to be sure).

That will be the last time I ever buy an extended warranty and now, when asked at the counter, I loudly proclaim, "You want me to buy a warranty like the one you failed to honor the last time I bought one?" Hopefully it will save somebody else some money and cost a few sales.

[ Reply to This ]



aderalahoo.com[ Reply to This ] (none / 0) (#12)
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[ Reply to This ]


kimo[ Reply to This ] (none / 0) (#13)
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GE Warranty By Any Other Name Still Smells | 11 comments (11 topical) | Post A Comment
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