• Report: #632215

Complaint Review: Best Buy-N.E.W. P.S.P.(performance service plan)

  • Submitted: Tue, August 17, 2010
  • Updated: Sat, September 04, 2010

  • Reported By: Jerry — moline Illinois United States of America
Best Buy-N.E.W. P.S.P.(performance service plan)
4401 16th st. Moline, Illinois United States of America

Best Buy-N.E.W. P.S.P.(performance service plan) DID NOT FULFILL EXTENDED WARRANTY CONTRACT OBLIGATION-CUSTOMER SERVICE IS DISGUSTING. Moline, Illinois

*Consumer Comment: That is good news..

*Author of original report: Best Buy to honor contract-hopefully

*Consumer Suggestion: T&C - pdf

*Consumer Comment: Link to BTP...

*Consumer Comment: This is the way it works now...

*Consumer Suggestion: Black Tie Protection

*Consumer Comment: What exactly is a N.E.W.P.S.P.?

*Consumer Suggestion: Terms and Conditions

*Author of original report: Best Buy-N.E.W. not comparable no hard drive.

*Author of original report: no hard drive, so not comparable

*Consumer Suggestion: Satisfy the contract or customer?

What's this?
What's this?
What's this?
Is this
Ripoff Report
About you?
Ripoff Report
A business' first
line of defense
on the Internet.
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Does your business have a bad reputation?
Fix it the right way.
Corporate Advocacy Program™

SEO Reputation Management at its best!

 Perhaps Best Buy should rename thier stores - Best Buyer Beware! I've been a long time patron of Best Buy but all that has changed since this incident. I'll try and keep this as brief as possible.

In 2005 I purchased a Panasonic hdd dvr w/ hard drive for $499 plus tax and an extended warranty for 4 years. The warranty cost $49.99. In 2009 I renewed my warranty for 3 more years at a cost of $95 through Best Buy's affilliate N.E.W.

Last week the recorder crashed and I took it to B.Buys' Geek Squad and two days later they called and said the unit will have to be "junked out" because repair costs would be higher than units' worth and come to the store and they will help me find a replacement.

After an extended wait to talk to an associate my turn came and he began to search store inventory for a replacement, I knew this could be a bit of a problem as these hard drive dvrs are being phased out of retail stores by the cable and satelite companies. After 15 min. of searching for a comparable replacement the rep. said "this vcr/dvd unit is as close as I can come to finding a comparable replacement. That's when the "fun" began.

I explained to him that "that" unit had no built in hard drive and anyone who has owned one of these knows how great they are for editing etc. as opposed to the regular vcr/dvr combo unit without a hard drive. I told him this type of replacement was not acceptabe for me as it was not even close to the product I had under extended warranty. I asked to talk to the manager and he gave me the same story- "we're sorry but this is the best we can do and it is store policy, your unit has depreciated and the value of a comparable machine is estimated at $291, I will upgrade the unit to a $309 unit but that's the best we can do,, it's not our fault that we don't carry the hard drive type units anymore". They would not look "outside" at other stores for me to get me what I had and said take this unit, a gift card or a store credit, that's all we can do.

I asked about a cash refund but my answer to that, again, sorry we are not allowed to do that. I took the $309 dollar vcr/dvr combo home and put it into service and there is no comparison in features etc between the old and this new unit. I contacted Best Buy customer relations after sitting on hold for 35 min and got the same run-around and he transferred me to the warranty people themselves.

I talked to two different people there and the first lady was "half way intelligent" and understood my problem but said "this is above my paygrade, I'll let you speak to my supervisor". Well the supervisor lady was absolutely useless as a customer relations person, she simply said " I'm sorry, there's nothing more I can do, have you talked to the manager at the Best Buy store?" Another dead end....

Now here's the exact wording of my extended warranty contract- "At our discretion, your product may be replaced with a new or rebuilt compareble product that meets the manufacturer's specifications of the original product, or you will receive a reimbursement (in the form of a check, voucher, or gift card) in an amount equal to the original purchase price."

Notice, there's no mention of depreciation or "as close as we can come to the original product" I have since purchased ,two days later, a Magnavox hdd dvr from amazon .com. Best Buy has lost me and several future customers after I spread the  message of how I was treated and the indifference by all those that should be interested in keeping customers. I have also filed a complaint with the  B.B.B.

I hope this helps someone else decide where to do their shopping and be wary of extended warranty contracts. This company N.E.W. and Best buy make up the wording as they need to to to keep them from fufilling their contractual obligations and certainly are not interested in losing "just one more customer". Very short sighted and another example of "hooray for us and sorry Charlie", that's the best we can do.


This report was posted on Ripoff Report on 08/17/2010 09:52 AM and is a permanent record located here: http://www.ripoffreport.com/r/Best-Buy-NEW-PSPperformance-service-plan/Moline-Illinois-61265/Best-Buy-NEW-PSPperformance-service-plan-DID-NOT-FULFILL-EXTENDED-WARRANTY-CONTRA-632215. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on Best Buy-N.E.W. P.S.P.(performance service plan)

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Search Tips
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
REBUTTALS & REPLIES:
3Author 8Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

That is good news..

AUTHOR: Ronny g - (USA)

As Best Buy stands to gain nothing by not honoring a service plan, unless the damage is not covered.

As far as what "Inthe know" last replied to me..

If you go to any of the terms and conditions BBY online links under any of the product protection plans, by clicking the orange "terms and conditions" link, you will open up to a 24 page .pdf - blktie.pdf.      All the departments plans are in this.  technically, the last 2 pages are blank and page 22 is a sign off acknowledgement.  In the store, the plans are separated by dept.

I agree. But what is stated on that 22 page PDF in LARGE simple to understand writing, is EXACTLY what this poster stated in the report. Hence..Best Buy SHOULD have offered this customer a store credit...since regardless of "their discretion" or not..it was simply impossible to replace this item with one of similar or equal specifications.

It is CLEARLY stated in the "actual" terms and conditions one page ONE...

If we determine in our sole discretion that your
product cannot be repaired, we will replace it
with a product of like kind and quality that is
of comparable performance or reimburse you
for replacement of the product with a voucher
or gift card, at our discretion, equal to the fair
market value of the product, as determined by
us, not to exceed the original purchase price of
your product, including taxes.

I do agree this gives Best Buy some leeway as to determine what fail market value is..but this is only because what fair market value of a defunct or obsolete item is...can often not be accurately or fairly determined by ANYONE. Well how much would you pay for an 8 track cassette player? What is "fair market value" for such an obsolete item? The problem is these days..that some electronics can be obsolete in 6 months..yes the technology changes that fast. So these terms are there to protect Best Buy from someone claiming the fair market value for something obsolete is more then what the item cost when new. A simple GPS unit a few years ago could cost $600.00. Today, you can get a fully loaded one with lifetime traffic and map updates for under $200.00. So a customer with a defect they paid $600.00 for is not going to always be happy that the plan can replace it with a unit of equal of superior specs for much much less.

The purpose of the plan is to make sure the customer will have an item to replace the bad one that is similar in specs..or to be reimbursed a fair market value and not to EXCEED the original purchase price including taxes. Why I had to explain this like your are an 8 year old is beyond me...but there it is in black and white.

The "no lemon policy" is easy...

"After three qualifying repairs where one or more part(s) were replaced on each separate instance, and upon the need for a fourth repair, the "no lemon" coverage under the Performance Service Plan (PSP) or Geek Squad Black Tie Protection provides an opportunity for replacement. Submitting for a fourth repair request is necessary to determine an issue exists and to qualify for replacement at our discretion.
"

The plans begin from date of purchase because they run "concurrent" with the manufacturers warranty, not a replacement or an extension of it. Normally the service plans will cover beyond what the manufacturer will..depending on the type of item and type of plan. Not too many manufacturers warranties will covers if you drop your camera...but some Best Buy services plans will. It is not a bad idea for the customer to simply read the plan they purchased to make sure they know what is and is not covered. If it is that confusing then I do not know what else to advise..maybe ask someone who is not confused and can read for advice and then purchase the plan or not?

The service plans Best Buy sells, are NOT intended to be, or supposed to be sold as "extended" manufacturers warranties. This goes back to the "selective hearing" example I gave in my previous post.


*Some Geek Squad Black Tie Protection services are not available on all products. Please reference the actual plan terms and conditions in your shopping cart for a complete description of the scope and limitations of coverage.

Standard and Advanced Black Tie Protection plans are available for purchase online and in store. Premium Black Tie Protection plans are available in store only. Available in the U.S. only; does not include Puerto Rico.


"Remember, the whole basis of retailers selling psp's is that most are NOT used - which of course renders the T&C irrelevant. "


These service plans are NOTHING more then insurance. Except unlike auto insurance, you are not required by law to have it. Of course the company that has to honor the plan is banking on nothing ever going wrong...but electronics do often fail for no apparent reason and no fault of the owner. So the CUSTOMER can decide...if something does go wrong that IS covered...do they wish to have to pay for a repair or replacement during the coverage period, or have it fixed or replaced at no charge in the event?..not a very complicated choice unless the customer fails to read what is covered..or ask someone who can read if they do not understand.

Respond to this report!
What's this?

#2 Author of original report

Best Buy to honor contract-hopefully

AUTHOR: Jerry - (United States of America)

     I am happy to report that Best buy has agreed to  honor their end of the contract on the HDD DVR as stated in my original complaint. I received an e-mail and a letter from the B.B.B. which forwarded to me the letter they received From Best Buy regarding the situation after B.B.B. contacted N.E.W.(AIG warranty guard) and N.E.W. referred B.B.B. back to Best Buy.

     They have now agreed to reimburse me the difference between the original purchase price of my original unit and the VCR/DVR which they substituted as a replacement. At this time that is about as close as they can come to honoring my  contract, as stated in my original statement. Supposedly the check is to arrive in 3-4 weeks, which it probably will, and the matter will be closed. I don't know about the other contracts wording. I just know what mine said when I renewed with N.E.W.

     Sounds  as though things have changed. Thank you all for your interest, perhaps others will gain from this. Should Best Buy not follow through with their check to me I will re-post.

Respond to this report!
What's this?

#3 Consumer Suggestion

T&C - pdf

AUTHOR: IntheKnow - (USA)

If you go to any of the terms and conditions BBY online links under any of the product protection plans, by clicking the orange "terms and conditions" link, you will open up to a 24 page .pdf - blktie.pdf.      All the departments plans are in this.  technically, the last 2 pages are blank and page 22 is a sign off acknowledgement.  In the store, the plans are separated by dept.

"Fine Print" is just that - it's not intended to be read in a store or read at all as a matter of fact.  that's how the materials are marketed.  For instance, an item is replaced at "fair market value;" there are plans out there that replace at "purchase price."  "Qualified" repairs under the "No Lemon Policy."  These never include ones under the manufacturer warranty - which is deceiving as the plans begin from "date of purchase."   on and on.  

Remember, the whole basis of retailers selling esp's is that most are NOT used - which of course renders the T&C irrelevant. 

Respond to this report!
What's this?

#4 Consumer Comment

Link to BTP...

AUTHOR: Ronny g - (USA)

I accidentally did not post the second link to the BTP terms and conditions specfically regarding home theater purchases...So I will post it here.

http://www.geeksquad.com/uploadedFiles/wwwgeeksquadcom/Services/Content/Black_Tie_Protection/1941-0227887_HomeTheater_3pan_NEW-2.pdf
Respond to this report!
What's this?

#5 Consumer Comment

This is the way it works now...

AUTHOR: Ronny g - (USA)

Best Buy and others have had problems regarding honoring "extended warranties" even though Best Buy does not sell or offer "extended warranties" and the employees are instructed not to sell these as such.

The way it works now and has for quite some time..since true, employees have been known to misrepresent the service plans, or be accused of doing so since customers tend to have "selective" hearing..is at the point of sale if the customer decides to purchase the service plan, a window comes up on the register which will NOT allow the transaction to be completed, unless the customer accepts that they received the BTP brochure which lists the terms and conditions. The brochure is not 24 pages..but a small brochure that states EXACTLY what is covered.

Most of the other legal mumbo jumbo is liability related and forced government disclosures..but what the plan covers is not complicated..and what it does not cover is not complicated.

I will now go to the terms and conditions on the website as you suggest..and see for myself if anything in these "24 pages" of tiny writing is deceptive...

...I could not find 24 pages..sorry. I found this..which is the general info and the writing is quite large..

http://www.geeksquad.com/gslibrary/services/content/black_tie_protection/terms_and_conditions/20080914/20080914TC.pdf

And I found this...which is the ONE page brochure that the customer must acknowledge they received before the transaction is allowed to be completed. I left the link specifically to home theater which would apply in this report which is specifically regarding a DVD player.

As far as this N.E.W....I was able to find them online from the info you posted...but this is irrelevant. It was never any secret that service plans are nothing more then out sourced insurance. And this is what puts Best Buy in a tough spot at times. In other words, the company that covers these plans has requirements to be met. If Best Buy decides to ignore these because a customer did not understand the terms or read it..then Best Buy gets stuck with the damaged item.

I will agree this is not a perfect system, but I will say Best Buy has made it very difficult for a customer to say they were not informed what was and was not covered. The fact that they must verify they received the information before the transaction will be completed makes it impossible to dispute anymore, nor blaming what they "claim" the 8 dollar and hour high school kid told them, or anyone else for that matter..

Respond to this report!
What's this?

#6 Consumer Suggestion

Black Tie Protection

AUTHOR: IntheKnow - (USA)

to Ronny G: 

the Black Tie Protection terms and conditions is available on their website.  check it out - rarely would a consumer peruse all this while making a purchase.  most of the time, as i'm sure you know, the sales person will state things that are just not what actually happens either with the way a claim is handled or against what is printed in the (tiny) terms and conditions.  a total of 24 pages of customer service??????

NEW is the service administrator for Best Buy.  AIG underwrites the plans.  NEW takes all the phone calls from customers and tracks all the sales, financial, actuarial and operational performance. 

You can check some info on NEW Customer Service Companies, headquartered in the greater D.C. area on the national BBB website. 

 

Respond to this report!
What's this?

#7 Consumer Comment

What exactly is a N.E.W.P.S.P.?

AUTHOR: Ronny g - (USA)

Never heard of this, and an internet or google search produces zero results.

They no longer sell "PSP's" or service plans...but what they call "BTP" or "Black Tie Protection" which is basically the same as some "PSP's" but there are also differences.

I can not find any "affiliate" of Best Buy called "N.E.W." or was aware they offer any other service plans currently other then BTP.

As far as what these plans cover, it is up to the consumer to read the terms and conditions. Normally I take the consumers side when it comes to any 'fine print" or deceptive policies...but I have to say on average...90%-95% of the complaints that claim Best Buy is not honoring warranties or service plans, is more of a scam then anything in the service plans terms and conditions.

Is it really that difficult to read what is covered when you purchase a service plan?

Now with that said, I do know the service plans do allow for a replacement of equal specifications. This does not matter if the original item cost $100,000 and a replacement of similar specs is available 3 years later for $5.00.

Where I side with this customer. is that a unit without a hard drive is certainly not "similar specs". So in this case, I think you should contact corporate again if you have not already and request a credit if they can not replace your original unit with a new one of equal or similar specifications.

You do not need a team of lawyers to understand that..it is clear as day.




Respond to this report!
What's this?

#8 Consumer Suggestion

Terms and Conditions

AUTHOR: IntheKnow - (USA)

The BBY terms and conditions are posted on their website.  Suggest to download it to your documents for future reference.   24 pages!  Sadly, between the printed selling points and the T&C  = only made for a trained eye or lawyer.  Most consumers (can you blame them) don't read all this garbage till something happens.


Hope this helps. 

Respond to this report!
What's this?

#9 Author of original report

Best Buy-N.E.W. not comparable no hard drive.

AUTHOR: Jerry - (United States of America)

thankyou for the suggestions.. I wonder why my terms and conditions read differently than the ones you quoted? Same warranty co.? Rewritten since 1/09? BB.s' and N.E.W.s' different? Mine read as shown in original complaint. I would have been more than happy to let them order an actual comparable unit from Amazon or anywhere else. I appreciate your help.
Respond to this report!
What's this?

#10 Author of original report

no hard drive, so not comparable

AUTHOR: Jerry - (United States of America)

Thankyou for your response and suggestion. I don't know where the contract wording is that you mentioned but it's not on my terms and conditions. I can see their point of less cost and I would have accepted a check for that amount or less so I could outside of BB. and get  an actual comparable unit since they had none to offer. My terms and conditions reads exactly as previously stated. Perhaps that's how N.E.W. worded it back in 1/09 or BB.s' reads differently than the warranty provider? Now I'm confused, maybe the contact you provided can clear up this dilema. Again, thankyou for taking the time to assist. Now, only if BB. would have shown a bit of  interest in the matter, they should know that without satisfied customers they would have no contracts to satisfy.  Jerry.                                   
Respond to this report!
What's this?

#11 Consumer Suggestion

Satisfy the contract or customer?

AUTHOR: IntheKnow - (USA)

Did OP find a product in the store that was comparable?


Look at their terms and conditions below.  Note "sole discretion" and "fair market value,"  "technological advances....."


"If we determine in our sole discretion that your product cannot be repaired, we will replace it with a product of like kind and quality that is of comparable performance or reimburse you for replacement of the product with a voucher or gift card, at our discretion, equal to the fair market value of the product, as determined by us, not to exceed the original purchase price of your product, including taxes.


Technological advances may result in a replacement product with a lower selling price than the original product."


Legally, they're feeling good about giving you "something" of value.  Unfortunately, satisfying the customer is not the goal as opposed to satisfying the contract.


You're right, the call centers are just a bunch of work-at-home employees with scripts.


Try this route:


Terry Westerman
Senior Representative
612-292-0074


Corporate Customer Care
PO Box 9312
Minneapolis, MN 55440
612-291-1000

Toll free: 1-888-237-8289


Good luck.

Respond to this report!
What's this?
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
X