Extended Warranty Problem

To summarise the below in fewer words: Extended warranty company has given us the run around for 3.5 months over a coffee machine $500, They now want to replace it with a much lesser brand to the original one and less in price (about $199 - 250). Aswell as cancelling the original warranty. Have made countless phone calls every week to get answers but now starting to lose patience and wondering if taking it further might be the best option.

The long version

Bought a coffee machine a few years ago for about $500 which had problems from the start and was hardly used because no-one wanted to take it into warranty a second time.
I found out the extended warranty was still valid so 3.5 months ago contacted the extended warranty company Lumley retail and it had a 5 year warranty all up. 3.5 months later we are still no better off, the repairer had the machine a month and decided there was nothing wrong with it, brought it back with the same problems so he took it away again, after weeks of phone calls to Lumley. He then decided it was faulty and the whole unit had to be replaced

2.5 months later we get an email to say they will replace the machine with a new one, but it was a sunbeam and the warranty is no-longer valid, we weren't thrilled about it because the machine was a lesser brand than the one we had before, I specifically chose the original one because parts of it were made in Italy and had great reviews. We accepted it. 3 weeks later we heard nothing and the store responsible for replacing were supposed to call and didn't. They then say the model they chose is no-longer available so will have to see if there's something similar available, problem is the machine they suggested was about $450 and the others are all very basic entry level machines valued from about $150 - $299 which would actually be the type of machine we had before this better machine. When I spoke to the store before they said they were given a budget of about $330 including freight, which isn't much to get something good.

Lumley assured us that the model could be ordered in. So 2 weeks later, get a call from the store responsible saying they will have to give us a Breville machine, which retails about $200 and is actually the same machine we had before and were very unhappy with.

Ive made countless calls to Lumley over the 3.5 month period, they have been friendly the whole time but I'm now getting a bit annoyed as its been so long and we seem to have been given the run around.

What I want to know, are warranty providers supposed to replace a product with something similar in value? or perhaps even slightly better? Is it supposed to take so long?

I'm thinking of options now as I'm getting tired of dealing with them and thinking it might be better off to get that $340 from them and walk away, if its possible. The store they want the claim handled with is one id never deal with, their website is down most of the time too so that's another thing that's annoying.

Whilst I wouldn't want the hassle of taking it further, I will if need be. Is there an ombudsman who would be good to contact to get some results? or would the best option be the small claims court? That's of-course as the very last resort.

Comments

  • +1

    Bikies

  • you would be entitled to a refund of the full amount if it can not be replaced with a similar model, does the brand you bought originally have a replacement/equivalent model of the one you purchased ?

    you kinda need to provide more info to get proper advice , model you bought/brand

  • What I want to know, are warranty providers supposed to replace a product with something similar in value? or perhaps even slightly better? Is it supposed to take so long?

    Read the full Terms and Conditions of the Extended Warranty agreement. It should give you an indication to what they're proposing.

    Some extended warranties may only replace the product or refund customers based on annual depreciation of the product. This means the product you get as a replacement may be inferior to the one you originally bought or you may be refunded less money than you originally paid.

    You could always write to them raising the concernt that the claim on the Extended Warranty has taken an unreasonable amount of time, set a date 21 days in the future, and see what happens. If they're still fart-arsing about, contact them with big pile of supporting evidence and tell them you're commencing legal action under the Australian Consumer Law. Blah blah blah, they begin to worry and remedy you.

    ???

    Profit.

  • It was the Saeco Via Venezia Traditional Coffee Machine, which at the time was about $500 and had excellent reviews. I now believe its not as good but its still around that price at other outlets. They only seem to deal with one outlet which is betta home living www.betta.com.au and their website has dns issues it seems as it doesn't load on mine or other peoples computers but the site is up! The one they have said they would replace it with is a sunbeam em6200 which I settled for as it was quite a good deal but unfortunately now they have backpeddled and said they can only replace it with the breville 800es and I cant stand breville coffee machines! We had nothing but problems with the one we had, so thats why we bought the Saeco one, its just really bad that the one we replaced seems to be the one we are getting back when we dont want it!

    They said we could choose another, but they have pretty strict costs to stick to, about $320 and nothing much on their site at that, I don't think its a good store to be buying from a coffee machine anyway.

  • So, just called them and they are saying that their warranties never cover full replacement of a product, style or brand style, just specifications, so you could always end up with a lesser product apparently. Its also a replacement on depreciated cost, not the cost you paid for it. Which I understand, that's in the fine print which should have been read.

    What I am annoyed about though is why has it taken 3 and a half months and countless calls to reach this outcome and to be given the choice of a pretty good replacement machine, to be then back peddle a few weeks later I feel that's wrong. We were satisfied with the replacement and all was agreed in writing and then they suddenly change it to something of lesser value. The item was also on the website a few weeks ago and also available on other sites, so I dont see how it could suddenly be discontinued.

    I have a feeling part of their policy is making people get to the point of giving up and just letting it slide.

    I said to the call centre staff who are based in South Africa, if you don't get put through to the Australian office, that they have been helpful, and professional, but they are not authorized to be much help which isn't their fault but they are a little bit robotic as I think this happens all the time.

  • I just came across this post. I have a Saeco Via Venezia and it's been a good machine. There are many authorised Saeco repair agents - if you lucky to have one close by take the machine to them and see what they say/get a quote.

    I also have an Italian La Pavoni coffee machine - similar to the Saeco and is now over 10 years old and still working. The secret to looking after a machine is to get it serviced as rubber parts degrade over time and the machine doesnt work properly.

    Many coffee machines use common parts so I would be surprised to hear that no one can fix it properly. Some of the cheaper machines may not be worth fixing (unless you are quite handy).

    Of course if you cant get the item repaired under warranty you can either ditch it or try to get it repaired at your cost.

    Good luck

  • This was some time ago now, and unfortunately they kept the machine and agreed to pay a little bit for a replacement, about less than half the cost of the machine I think. It probably wouldn't have been worth getting it fixed as the problem returned with the same problem, and the pump needed to be replaced apparently, which made it not possible for them to fix it under warranty as it would be too expensive, was pretty annoyed at the time.

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