You ordered a warranty, duly paid each month, and now, when a problem arises, they don't want to pay. What should you do? Several other pages deal with arbitration and preparation, but here, we will discuss negotiation.

1. Document Your File
   These companies sometimes deny claims when they think you can't prove them. Be prepared to document the problem, the need for repair, and other issues.

2. Don't Trust Their Statements About the Law
   Another page discusses the types of claims you can have, which include breach of warranty and deceptive practices.

3. Contact an Attorney, but Handle It on Your Own If Necessary
   An attorney will have training and experience. Some lawyers will handle claims by getting paid most or all their fees at settlement, but many will not. If you cannot find an attorney, file on your own. Many companies will do nothing until faced with legal action.

4. Don't Take Legal Advice from the Company or Their Lawyer
   The company or their lawyer may tell you they followed the law or provide other misinformation. You need to check things on your own.

5. Ask About Statements in Brochures or Websites That Contradict Their Disclaimers or Limitations
   No one sells a warranty saying, "We have many loopholes and disclaimers, and if your engine fails, we probably won't cover it." Many states have consumer fraud laws, and some, like New Jersey, provide for triple damages. When speaking with the company, ask why they don't disclose limitations in bold print, why disclaimers are hidden in small print on the last page, and if their goal is to deceive customers.

   

6. Research the Company's History and Problems Other Customers Had
   Some companies have a history of complaints. The Better Business Bureau does a good job of assembling complaints, though their ratings can be misleading. Talk about the poor experiences other customers had to show the company is misleading the public.

7. Consider a Settlement Package
   One tool lawyers use is a settlement package. The document should include a list of materials that demonstrate your claim and can include: repair order, request for repair, denial letter, other complaints, rental receipts, and categories in an index.

8. In Negotiation, Make Concessions Slowly
   If you are in litigation, ask for compensation based on your claims. Be pleasant and cordial, but be cautious about making concessions unless they do so first. Avoid making concessions quickly, such as when asked about a bottom-line figure. Note that judges and others generally want people to try to resolve matters.

9. File with the Underlying Insurance Company
   Many policies provide that another company insures the warranty company's performance. A New Jersey law provides:

"If the payment due under the terms of the warranty is not provided by the warrantor within sixty days after proof of loss has been filed according to the terms of the warranty by the warranty holder, the warranty holder may file for reimbursement directly with the company issuing the warranty reimbursement insurance policy, and the insurer shall make reimbursement or provide the service required by the warranty directly to the warranty holder." (N.J. Stat. § 17:18-21)

If you have not received payment, consider forwarding a letter to the insurer requesting payment.

Call Us for a Free Consultation on Your Warranty Claim

🌐 Sources:

You may also like:

• Solving Problems with Service Plans and Warranties

• Arbitration with a Warranty Company

• Car Extended Warranty Calls: Understanding Your Rights and Seeking Legal Help

• Deceptive Auto Warranties and Telemarketing: Remedies and FTC Action

• Contingency Lawyer and Robocalls

Keywords: consumer attorney, small claims lawyer, consumer complaint