Last year, I purchased an UPS from CompUSA (now name changed to Tiger Direct), and decided to get the 2 year Premium Electronics Warranty from Square Trade. The UPS was $215.99 and I was charged $35.98 for the "warranty". I bought the warranty because the person at the register stated that I would get a replacement if the unit failed.
On Friday, October 3, I had a brownout and the UPS did not work. Also, the unit was extremely hot to the touch. I removed the unit from service. On Sunday, Ocotber 5, I took the UPS to the store where I bought it.
There, I was told they could not do anything for me, since I had to call Square Trade and file a claim. Thus, the initial representation made by the cashier was not correct.
On the same day, I called Square Trade, and it took them a long time to find the record. The guy on the line even claimed I never bought a warranty. Finally, after more than half an hour, he managed to find my record.
I was then told to scan the receipt and sent it to them via email, along with a claim number that they gave me in the call. The said that they would email me back within 1 or 2 days with further instructions.
I never received a response from them.
Today, eight days after sending the email, I called Square Trade and ask about my claim. The call was answered by a guy in Pakistan. After a long wait, he stated that a claim for $199.99 had been approved. I stated this was NOT the price I paid for the UPS. He stated that that was the amounr in "the contract". None of the papers I signed or got when I purchased the unit stated that coverage was for less than the amount I paid for the unit. I tried to explain that to the person on the line. He stated that "my contract" was for $199.99 and that was what they would pay.
It should be evident that the Square Trade Extended Warranty is a ripoff. First, when the warranty is sold, people are made to believe that claims will be handled at the store where the article is purchased, and this is not the case. Secondly, after you call Square Trade, they try to find any reeason for refusing to honor the claim When they finally do, they wantr to pay less thant what was paid for the item covered by the warranty.
Needless to say, I will never buy a Square Trade warranty again. This is a scam. Of course, I will notify the local Department of Consumer Affairs and any other agency that may have jurisdiction.