What would happen to all of the PA agreements we sell if we go out of business? People are still spending hindreds of dollars on PAs, but everytime I sell one I think that there is no way we will be around in 5 years to honor it. When SHC goes bankrupt are all the PAs just void?
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I was "let go" after 20 years of dedicated service this year. I have not, and will not, step foot in a Sears/Kmart store again. Word of mouth advertising reaches more people than any other. I now recommend to Never shop at these stores again. Corporate should break out their archived training videos & maybe educate themselves!
Personally, I don't feel sorry for them if they get screwed out of the extended warranties. if you are still shopping at Sears and Kmart after all these years of high prices, no help, bad selection, horrid customer service and numerous scams, then it is your own fault. LOL.
I have seen in lawn and garden that most items,mowers,weedwackers,etc. Are no longer even being repaired under PAs,all we do is exchange the item under manufacturer warranty, so I wonder if they are phasing out the PAs ,plus everything in Division 71 has a two year manufacturer 's warranty, maybe tractors will be different, too expensive to just do a warranty exchange constantly. Also the SPPs are such a joke,who wants to wait for a gift card when you can get a new one off the shelf anytime during the two year manufacturer s warranty. All we seem to do in hardware is give out new tools for the craftsman tool warranty on tools that were likely brought at flea markets or yard sales but can say nothing about it. As I said,what a joke.
It's an obligation of the company and the bankruptcy court will take it into account. Most likely there will simply be a provision for service. PA holders will be able to call some service company if they have issues. It's highly unlikely people will get a refund.
SHC still makes a fortune overall on PA sales. They wouldn't be beating you all to death over this if they were losing money. The majority of people have no problems with their items during the "protection" period. This has been the nature of the game since it was invented decades ago.
Legally, most if not all states will require a fund of sorts--money that is allocated to cover the liabilities. In that case, an agent (typically a law firm if not the US Bankruptcy court) will just pay out the value of the items when new.
I wonder if the PA program even makes money anymore. I wonder if they are spending more money in satisfying the terms of their contracts than what is being taken in as revenue. Quite frankly, pretty much everything is garbage and isn't built to last (this is an everywhere problem, not just a Sears problem). To make matters worse, Sears has this silly rule that it requires four functional failures before they replace the unit, I've seen Sears pour $1200 worth of work into a $700 appliance, as an example, and then finally pay for and replace the product after the fourth time. On a $700 product, the PA cost somewhere between $160-400 depending on how long and the type of product being covered. That's a huge loss if I've ever seen one.
You'd think that the customers would get a refund but how if its bankrupt