Steven L. Abrams
Mary Lou Berger
"An equal opportunity
Extended Warranties Warrant Caution
In today’s difficult economy, some retailers are filing bankruptcy under Chapter 11. This allows time to acquire financing, pay off creditors, reduce debt, and make other changes to avoid going out of business. If you buy any products during this limbo period, be wary. Stores in financial difficulty are not required to reveal an impending bankruptcy, and they can still sell extended warranties on their products, even though they may not be around to back it.
Extended warranties are offered on home electronics, computers, appliances, used automobiles and other products that can be expensive to repair. But the term “extended warranty” itself is a misnomer. An extended warranty is really a service contract. If the replacement/repair coverage comes free with the product, then it is a warranty. If you pay extra for it, it is a service contract.
Here are some things to keep in mind when considering purchasing a service contract:
To learn more about extended warranties and service contracts, call Consumer Affairs at 561-712-6600 for a company report or get it online at: http://www.pbcgov.com/publicsafety/consumeraffairs/
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