Warrantech Companies (WCPS)/Repair Master

There is no depreciated value buyout clause in the warranty. Plans are sold as either repair or replace. Products may be replaced with a product of a different brand and may be new or refurbished. The company will pay up to the original price of your product "on any single repair...or its replacement." As well, "you may be required to ship or deliver the defective product prior to receiving reimbursement or a replacement product." Ouch, an unexpected potential expense.

However, I've had to create a new term called a "Dump" clause due to finding exactly that. These could be even more damaging than a depreciated value buyout clause.

The first is a clause dealing with parts becoming unavailable during the extended warranty period. "Should repair parts become unavailable during the coverage period of this Plan, the Obligor and the Administrator shall be excused from performance hereunder and you shall receive a pro-rata refund of the purchase price paid by you for the Plan less claims paid, if any." The language in the contract does not even say that in this instance the owner is eligible for a replacement product. All they will get is a pro-rata portion of the amount they paid for the warranty (unless there was a previous claim). Cross your fingers and hope that replacement parts remain available for your TV during the warranty period or you'll be dumped like a bag of rotten potatoes!

The second "dump" clause states that products must be sold through an authorized dealer to be eligible for coverage. "Products sold through Unauthorized Dealer or an Unauthorized Internet Provider do not carry an original manufacturer's parts and labor warranty and are therefore ineligible for coverage under a RepairMaster or Preferred Service Plan and will be cancelled." Better hold some proof that you purchased the product from an authorized or you'll be dropped.