Square Trade Warranty Scam? | Buying

tunemakers · 2023-10-30T18:40:53.603000Z

I bought an electronics item for $600 on Ebay on 6/17/22. It was offered with a two year Square Trade warranty for electronics items between $600 - $700. The price of the extended warranty was $149.99 which I purchased. I have purchased many Square Trade warranties for other purchases but never needed to use. That was the peace of mind you pay for when buying any kind of warranty. In August of 2023, the item died. I initiated a warranty claim with Square Trade (Owned by Allstate). After 6 calls and numerous conversations, I was sent an email that denied the claim. I was offered the option of cancelling the warranty and getting a refund of the $149. I was given various reasons for the denial. End of the day, they were only willing to refund my purchase price (not the sales tax) and not honor the warranty. I have heard that this is not an uncommon practice. You buy a warranty and when a covered item occurs and you file a claim, it's denied. Also happens a lot in other industries like automotive and medical. They had my money for a year interest free and rather than pay a $600 claim (which is what the warranty is for), they just refund the premium sans sales tax. I'd like to offer a warranty for EVERYTHING sold on Ebay, deny all claims when they occur and refund the price of the warranty. Whatever amount of time transpires from when a warranty is purchased to the time of a denied claim and refund will provide a staggering return from the invested funds. All the revenue from the non claimed warranties that were sold are icing on the cake. But then again, that's how many companies work. Shame on Ebay for working with a third party that doesn't honor the terms of the warranties they make. I'm sure Ebay gets their cut of the deal that makes it too profitable to kill. All about the corporate profit and not the consumers rights. Buyer's beware!

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Square Trade Warranty Scam? | Buying | eBay Community