Maytag/Whirlpool Service Contract Class Action Lawsuit
February 7, 2012 Posted in: Mass TortsUnethical and fraudulent practices by companies taking advantage of the disadvantage need to be pursued legally to ensure those financially injured are compensated, national class action product liability attorney Keith T. Belt says
A disgruntled customer has filed an amended class action lawsuit against Maytag Corporation (now a part of Whirlpool Corporation) and its service contract administrator Service Net Warranty, claiming the companies engaged in deceptive and unfair trade practices by refusing to honor their service contracts. Thousands of consumers — or perhaps hundreds of thousands — were ripped off by Whirlpool and Service Net when those companies did not repair or replace faulty appliances per the terms of the service contracts.
The customer, Mark Sherman, purchased a Maytag clothes dryer along with a three-year service contract that promised to repair or replace the appliance if it failed. The contract also gave the warrantor the option of “buying out” the contract by either refunding the original purchase price less the amount of claims paid, or replacing the dryer with a comparable product. Instead of refunding the original purchase price or replacing the dryer, the Maytag and Service Net told the customer that he was only entitled to a refund of the present value of the dryer, minus the cost of the repairman’s visit. Which is absurd, since the point of buying a service contract is to avoid the cost of repair.
Sherman alleges in the Maytag/Whirlpool class action lawsuit that the companies failed to fulfill the terms of the service contract by improperly administering buy-outs. As such, the class action lawsuit alleges that the dryer’s buy-out, and buy-outs given to similarly situated consumers, constituted breach of contract, unjust enrichment, and a violation of the federal Magnuson-Moss Warranty Act. Consumers purchase service contracts to ensure that they will be protected should an appliance need repair or replacement. Corporations and service contract providers need to be held accountable to the terms of the service contracts, said Sherman.
About Belt Law Firm, P.C.
Belt Law Firm, P.C., has more than 70 years of combined experience, and has the resources and experience to take on class action lawsuits of any size and against any opponent. In the past, our class action lawyers have participated in several large-scale class and mass joiner actions and have secured millions of dollars for our clients. Class-action lawsuits are an efficient and calculated way to take on large, well-represented organizations, and also to help the maximum number of people. Class action lawsuits offer a number of advantages because they are able to aggregate a large number of what are often smaller individualized claims into one class action lawsuit. Our class action attorneys’ main mission is to bring powerful representation and justice to the individual or small business. In the process, class actions provide the necessary impetus to change laws for the better and to help thousands of people who have been injured, oppressed or have suffered injustice. We put our reputation on the line in every case.
If you believe that you have been cheated or defrauded by a common corporate plan or scheme, you should contact us immediately at Belt Law Firm by filling out this form or by calling us toll free at 1-888-933-1514 for your Free Class Action Consultation.
