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Bob’s Discount Furniture Warranties Not Honored New York Class Action

Bob’s Discount Furniture, LLC sells furniture, and it also sells warranties for the furniture against certain kinds of damage. The complaint for this class action alleges that Bob’s receives “undisclosed incentives or kickbacks” from the issuer of the warranties and then denies claims for invalid reasons.

The class for this action is all those who live in New York and bought the warranty during the applicable statute of limitations.

Bob’s sells a “Goof Proof” warranty from Guardian Insurance to cover the furniture it sells. The insurance is supposed to cover damage from “liquids, food or beverage stains, pen markings, cosmetics, and rips, tears, cuts and punctures.”

The complaint alleges that Bob’s “sales personnel receive bonuses and can be penalized based on the number of warranties they sell.”

But the complaint alleges that when customers try to make a claim, their claim is denied with the explanation that the damage was not accidental but caused by misuse.

In addition, Bob’s “regularly denies claims if a customer cannot identify the exact date within a 30-day period when the stain or damage occurred.”

It will also deny claims where the furniture shows more than one marking or puncture, again claiming the furniture was misused. The complaint alleges, however, that “it is not expected that a customer would submit a claim on the warranty for the most minor and less visible markings or tears.” Thus, the complaint seems to suggest, by the time a more prominent instance of damage is reported, the furniture is likely to have one or more signs of more minor damage.

Other reasons for denial include calling the damage “accumulated [stains/tears/etc],” repetitive,” or “preventable.” Customers make claims by submitting photos of the damage, and the complaint claims that Bob’s tries to identify other instances of markings or tears and use them as a reason to deny claims.

The store “has not reasonably defined what types of stains, rips, etc.[] are ‘excessive’” which, the complaint contends, allows it to deny valid claims.

Also, the complaint claims, “[r]epresentatives of the warranty company, on information and belief, receive incentives for the number of claims they deny during various time periods,” which means that customers are often deprived of the benefits of the warranties they paid for.

Even though claims are refused because of “misuse” or “excessive” damage, the complaint points out they are also refused for what is deemed “normal wear and tear.” Claims are also denied if rips or punctures are determined to be “defects” in the furniture.

Finally, the complaint alleges that the companies make it difficult for customers to make claims, promising to call them back but not doing it, disconnecting them in the middle of conversations, giving them a runaround, or waiting long times to speak to people.

The complaint alleges that Bob’s “and its partners are [] in the business of collecting premiums and rejecting claims submitted for the Goof Proof warranty.”

Article Type:
Topic: Insurance

Most Recent Case Event

Bob’s Discount Furniture Warranties Not Honored New York Complaint

December 25, 2020

Bob’s Discount Furniture, LLC sells furniture, and it also sells warranties for the furniture against certain kinds of damage. The complaint for this class action alleges that Bob’s receives “undisclosed incentives or kickbacks” from the issuer of the warranties and then denies claims for invalid reasons.

Bob’s Discount Furniture Warranties Not Honored New York Complaint

Case Event History

Bob’s Discount Furniture Warranties Not Honored New York Complaint

December 25, 2020

Bob’s Discount Furniture, LLC sells furniture, and it also sells warranties for the furniture against certain kinds of damage. The complaint for this class action alleges that Bob’s receives “undisclosed incentives or kickbacks” from the issuer of the warranties and then denies claims for invalid reasons.

Bob’s Discount Furniture Warranties Not Honored New York Complaint
Tags: Furniture, Refusal to Honor Warranty, Warranty