• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Paid for 3yr extended warranty. Not honored.

#1
Georgia I purchased Lowes window ac unit late last June with 3yr ext. warranty. One month later it quit. They replaced it. Now, one year and a couple of weeks after the original purchase date, it has quit again. They won't replace it and repairman said there are no parts available. They are offering a refund, less taxes but no refund of the money spent on the extended warranty. If they aren't going to provide me with air conditioning for the agreed 3 yr term, it occurs to me that they should refund the fee for their warranty. Also I don't understand how they can insist on keeping the sales tax that I paid. A refund is a refund, right? How should I approach this? Have I a good or the correct argument? Thanks, Josh
 


#2
Also I don't understand how they can insist on keeping the sales tax that I paid. A refund is a refund, right?
The store does not keep the sales tax and the sales tax is not part of your contract with the store. The sales tax is levied by the state and it is the state that took the money for it. The store simply acts as the collection agent for the state. I do not see you getting that back.
 
#3
The store does not keep the sales tax and the sales tax is not part of your contract with the store. The sales tax is levied by the state and it is the state that took the money for it. The store simply acts as the collection agent for the state. I do not see you getting that back.
When I return an item to a store, they always refund the sales tax in my experience. Doesn't matter that they are collecting for the state. They are responsible to refund to me and to get it back from the state. They must account for what they sold and unsold. The larger issue is the warranty that they aren't honoring. They should, in my opinion give me another unit and as many as it takes to fulfil their 3yr contract. Thanks anyway.
 
#4
When I return an item to a store, they always refund the sales tax in my experience. Doesn't matter that they are collecting for the state.

They are responsible to refund to me and to get it back from the state. They must account for what they sold and unsold.
Certainly the dealer can do that. Technically, though, the tax is imposed on you, not the dealer. The dealer just collects it. If the dealer takes a return of the goods purchased and refunds the purchase price the dealer may then credit that against his sales tax. But nothing in the Georgia sales tax law appears to require the dealer to make that refund of sales tax.

As to the warranty issue, I have no comment on that since I haven't read the exact terms of the warranty.
 
#5
Certainly the dealer can do that. Technically, though, the tax is imposed on you, not the dealer. The dealer just collects it. If the dealer takes a return of the goods purchased and refunds the purchase price the dealer may then credit that against his sales tax. But nothing in the Georgia sales tax law appears to require the dealer to make that refund of sales tax.

As to the warranty issue, I have no comment on that since I haven't read the exact terms of the warranty.
That sounds illogical to me. Is there, under Georgia law, a means by which one seeks reimbursement for taxes paid on returned merchandise? It seems that if stores followed such a law that the state would be absolutely overwhelmed with requests for refunds. Have you ever seen the returns counter at a Walmart? I've never seen this in practice in my 63 years.
 

Zigner

Senior Member, Non-Attorney
#6
If they pay your claim (not "refund" - "pay") per the contract, then you are utilizing the contract so you won't get the money back that you paid for the contract. That'd be like trying to get your car insurance premiums back when you total your car. It doesn't work that way.

On the same note, the money you would be receiving, as I said above, is the payment of a claim, not a refund of your money. You're not going to get the sales tax back because they're not refunding your money, they're simply paying a claim.
 
#7
If they pay your claim (not "refund" - "pay") per the contract, then you are utilizing the contract so you won't get the money back that you paid for the contract. That'd be like trying to get your car insurance premiums back when you total your car. It doesn't work that way.

On the same note, the money you would be receiving, as I said above, is the payment of a claim, not a refund of your money. You're not going to get the sales tax back because they're not refunding your money, they're simply paying a claim.
They should be refunded a pro rated share of the warranty, barring such within the warranty terms themselves. In your car analogy, a customer will be eligible for a refund of payments for a policy paid in advance. Obviously the op isn’t due a refund of the share of the policy already “used”.


I agree with the issue of this not being a refund. Odd that taxing matters missed that.
 
#8
They should be refunded a pro rated share of the warranty, barring such within the warranty terms themselves. In your car analogy, a customer will be eligible for a refund of payments for a policy paid in advance. Obviously the op isn’t due a refund of the share of the policy already “used”.


I agree with the issue of this not being a refund. Odd that taxing matters missed that.
I just got an e mail from Lowe's with the terms and conditions of their plan. They state that sales tax will be refunded in their buy back plan. I think it's a game they are playing. They also mention that their coverage may overlap with that of the manufacturer. I spoke with Frigidaire today also. They claim that the factory warranty on the unit is five years. Two years, replacement and three yrs. parts only. They also said that up until a month or so ago they did replacements and that after the season is over, September or October he said, they would exchange the unit, but not now. Two years puts me well inside the boundaries of the manufacturers warranty.
 
#9
One thing that is bugging me is that they are selling a product that no parts are available for. None, save the filter. How can they even offer a protection plan if it doesn't include replacement? Another is how they manipulate whose coverage I'm under, the manufacturer or the plan carrier. They are choosing what is best for them and trying to screw the customer, like when they made the first buy back offer to not include reimbursement for sales tax. It's in their terms that I am entitled to the tax that I paid.
 
#10
I just got an e mail from Lowe's with the terms and conditions of their plan. They state that sales tax will be refunded in their buy back plan. I think it's a game they are playing. They also mention that their coverage may overlap with that of the manufacturer. I spoke with Frigidaire today also. They claim that the factory warranty on the unit is five years. Two years, replacement and three yrs. parts only. They also said that up until a month or so ago they did replacements and that after the season is over, September or October he said, they would exchange the unit, but not now. Two years puts me well inside the boundaries of the manufacturers warranty.
So is Lowe’s acting under the manufacturer warranty or the additional warranty? It sounds like they are acting under the aftermarket warranty

It sounds like you need to ask Frigidaire how to get your unit fixed or replaced and deal with Lowe’s only of Frigidaire directs you to do so.

Frigidaire administers their warranty, not Lowe’s. Lowe’s can act as Frigidaire dir3cts them, if Lowe’s has agreed to do so but with many appliance warranties (manufacturer warranty) the original merchant is totally out of the picture.
 
#11
So is Lowe’s acting under the manufacturer warranty or the additional warranty? It sounds like they are acting under the aftermarket warranty

It sounds like you need to ask Frigidaire how to get your unit fixed or replaced and deal with Lowe’s only of Frigidaire directs you to do so.

Frigidaire administers their warranty, not Lowe’s. Lowe’s can act as Frigidaire dir3cts them, if Lowe’s has agreed to do so but with many appliance warranties (manufacturer warranty) the original merchant is totally out of the picture.
The Frigidaire guy told me that they would replace it if I waited til the season was over, perhaps in Sept. or Oct. He wasn't sure which. I said " That does me a lot of good. I need a.c." He said "That's why we have the buy back offer". They cant fix it. There aren't any parts available. Only thing they can do is replace....or refund. Another replier here mentioned prorating the protection plan. Sounds fair. When you cancel your car insurance you get refunded for unused portion. it is there fault that they can't provide a product that works and can't be made to work.
 
#13
Anyway, I communicated to Lowe's that I'll accept the offer if it includes the return of the taxes I paid. It says that I am entitled to that in their ters and conditions. That was bs, trying to keep that 25 bucks from me.. So it will have cost me 50 bucks to have the unit for a year. I can live with that. Still not thrilled.
 
#14
So is the buyback through Frigidaire or the extended warranty?

Maybe I should ask: is the extended warranty provided by Frigidaire, Lowe’s, or a some other party?
I think it's through Frigidaire, the manufacturer. Extended warranty is from Lowe's. Lowe's at one point agreed to full refund of everything and transferred the call to Frigidaire who then said no to that . Buy back only unless I waited until lI didn't need my a.c. I'm laughing at this point.
 
Top