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Home › Help › The warranty claim runaround
Help: Getting a problem fixed · Shopping

The warranty claim runaround: fair or not?

Your appliance, phone or car breaks while it is still under warranty. The store says to call the maker, the maker says to go back to the store, and an extended warranty company asks for more paperwork. Weeks pass with no repair. A warranty is a promise, but is it fair when keeping that promise feels like a test of patience?

Is it fair when a warranty claim is denied, delayed or bounced between the maker and the seller?

Be one of the first to vote.

What happens

Most products come with a written warranty from the maker. Many stores also sell extended warranties or service contracts, often backed by a third company. When something breaks, you may need to find the right company, show proof of purchase, ship the item at your own cost, or wait for an approved repair shop.

Claims can be denied for reasons buried in the fine print, such as "misuse," missed maintenance or using a repair shop the company did not choose. Some claims stall while each company says the other is responsible. For cars, repeated failed repairs can leave you with a vehicle that still does not work right.

Why many people say it’s not fair

  • The warranty helped sell the product, but using it can take more time and effort than the repair is worth.
  • Being passed between maker, seller and contract company leaves no one responsible.
  • Denials based on vague terms like "misuse" are hard for buyers to challenge.
  • Shipping costs, fees and deductibles can eat up what the warranty is worth.
  • Some warranty terms suggest coverage ends if you use other parts or repair shops, even when the law may not allow that.
  • Extended warranties are often sold under pressure and may repeat coverage you already have.

The other side

Makers and warranty companies say rules about proof of purchase, approved repair shops and maintenance records help stop fraud and keep prices down. Some damage really is caused by accidents or misuse, which a standard warranty was never meant to cover. Checking claims carefully protects honest customers from paying for abuse.

Sellers often point out that the maker, not the store, issues the warranty. Extended warranty sellers say their contracts are optional and spell out what is and is not covered, and that many buyers value the peace of mind.

Options you may not be told about

Under federal law, a warranty generally cannot require you to use a specific brand of parts or repair shop to keep coverage, unless those are provided free or the FTC grants a waiver.
If a maker gives a written warranty or sells a service contract, it cannot disclaim implied warranties, which are basic promises that a product will work as it should. A limited warranty may shorten how long they last.
If a company breaks a written warranty, the federal Magnuson-Moss Warranty Act lets buyers sue, and a winning buyer can recover court costs and reasonable attorney's fees.
Many states have lemon laws for new cars. Florida, for example, runs an arbitration program that can help buyers get a refund or a replacement vehicle.
Before buying an extended warranty, the FTC suggests checking whether it adds anything beyond the maker's warranty and setting money aside for repairs instead.

What you can do

  1. Find your warranty and receipt, and read who covers what and for how long.
  2. Contact the warrantor in writing, describe the problem and ask for a repair, replacement or refund.
  3. Keep copies of every repair order, email and claim number, with dates.
  4. If denied, ask for the reason in writing and the exact warranty term relied on.
  5. For a car with repeated problems, contact your state attorney general about your state's lemon law.
  6. Report unresolved problems to the FTC at ReportFraud.ftc.gov and to your state attorney general.

Rules and your rights

The federal Magnuson-Moss Warranty Act covers written warranties on consumer products. It requires warranties on products over $10 to be labeled "full" or "limited," generally bars tying coverage to specific parts or service, and lets buyers sue for breach. In July 2024, FTC staff warned eight companies about warranty terms and "void if removed" stickers that may violate this law. Car lemon laws are set by each state, and details differ. Report problems to the FTC and your state attorney general.

Has this happened to you? Share what happened so others know what to expect.

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Related

Common questions

Does using a third-party repair shop void my warranty?

Generally, no. Federal law usually bars warranties from requiring a specific brand of parts or service unless the company provides them free or has an FTC waiver. A company might still deny coverage if it shows the outside repair caused the damage. Keep receipts for all maintenance and repairs.

What is the difference between a warranty and an extended warranty?

A warranty usually comes with the product at no extra cost. An extended warranty, often called a service contract, costs extra and may be run by a different company. The FTC suggests checking whether it adds coverage beyond the maker's warranty and reading the exclusions, deductibles and fees before you buy.

How do I know if my car qualifies under a lemon law?

Each state sets its own rules, usually for new vehicles with serious defects that are not fixed after repeated repair attempts. Keep records of every repair visit. Contact your state attorney general's office, which can explain your state's law and any arbitration program available to you.

Sources: FTC: Businessperson's Guide to Federal Warranty Law ↗ · FTC: Warning letters on warranty practices that harm right to repair (July 3, 2024) ↗ · FTC: Extended warranties and service contracts ↗ · Florida Attorney General: Lemon Law ↗ · Mass.gov: Service contracts vs. extended warranties ↗

General information, not legal, financial or real estate advice. Whether a practice is fair is a matter of opinion; votes and shared experiences are the views of site visitors, not AblePro, Inc. Rules and company policies change; check current terms and your state’s rules.