Q: Bought Fridge & ext. warr 5year (Nov 23) from a Comp who went Chapt 11 in (Feb).
Paid Company for both and now Insurance company (CPS) wants me to purchase new policy stating they will help me get my money back from credit card company because bankrupt company never paid them. Does this sound like FRAUD??
A:
The situation you've described does raise some red flags, but it may not necessarily be fraud. Here are a few things to consider:
1. If the company went bankrupt in February, it's possible they didn't transfer the funds to the insurance company (CPS) before filing for Chapter 11. This would explain why CPS doesn't have a record of your policy.
2. CPS asking you to purchase a new policy with the promise of helping you recover money from your credit card company sounds unusual. Typically, if you paid for a service that wasn't provided due to bankruptcy, you would file a claim with the bankruptcy court as a creditor.
3. If you paid for the fridge and extended warranty with a credit card, you may have some protections through your credit card company. Many credit cards offer extended warranty coverage and may be able to assist you directly.
Before purchasing a new policy from CPS, I recommend the following steps:
1. Contact your credit card company directly and explain the situation. Ask about their extended warranty coverage and if you can file a claim with them.
2. Research CPS to ensure they are a legitimate company. Look for reviews, complaints, and any information about their business practices.
3. Consider seeking advice from a consumer protection attorney or a non-profit consumer advocacy group to better understand your rights and options in this situation.
Remember, if something seems too good to be true or feels suspicious, trust your instincts and proceed with caution. Don't let anyone pressure you into making a decision you're uncomfortable with.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
