Refrigerator - Prorate vs Depreciation?

[Skeezix]

Jurisdiction

Pennsylvania

Hi all.

Our 3 1/2 year old LG refrigerator has been declared dead by LG. We have a claim number and they will write a check for the prorated amount.

I've found depreciation calculators online and the depreciation rate is 6.67% for refrigerators. That would mean a check for over $1400. Is the depreciated value what I should expect from LG? Or, are they two different things?

Also, is the amount they offer negotiable?

Thanks!

 

[army judge]

Perhaps you might find these websites useful:



Covered Models | LG Refrigerator Settlement
...


LG Fridge Settlement: Here's How to File a Claim for Some Cash
...


Frequently Asked Questions | LG Refrigerator Settlement
...


LG Offers Reimbursement for Refrigerator Repairs, Lost Food – NBC 7 San Diego
...


LG fridge settlement could reimburse customers for food loss, repairs cost due to cooling issues
...


Reimbursement for Refrigerator Repairs from LG - MountainVue
...

Is the depreciated value what I should expect from LG? Or, are they two different things?

LG will determine what they'll reimburse you, regardless of what any online calculators might reveal.

My guess, because I am a cynic, is you'll be fortunate if you get anything close to $1.4K.

Also, is the amount they offer negotiable?

You are free to haggle, if LG wishes to engage in such discussions.

Bottom line, no human being can predict ACCURARATELY what another human will or won't do!!!

 

[Skeezix]

Thanks for the response.

I was hoping there were firm standards written into law that they had to base their refund on. Maybe the Magnuson-Moss Warranty Act.

 

[adjusterjack]

Is the depreciated value what I should expect from LG?

$1400? Highly unlikely.

Or, are they two different things?

They are two different things.

Read your warranty.

It will answer your question.

Or, simply ask your claim rep how much you will get. Can't imagine why you haven't done that.

 

[Skeezix]

$1400? Highly unlikely.



They are two different things.

Read your warranty.

It will answer your question.

Or, simply ask your claim rep how much you will get. Can't imagine why you haven't done that.

Not much of an imagination I guess.

I've read my warranty and it doesn't answer my questions.

I'd like to go in with some knowledge of where I stand and won't have to call multiple times and sit on hold.

Can I ask why you're a moderator if you're unpleasant and unhelpful?

 

[justblue]

Not much of an imagination I guess.

I've read my warranty and it doesn't answer my questions.

I'd like to go in with some knowledge of where I stand and won't have to call multiple times and sit on hold.

Can I ask why you're a moderator if you're unpleasant and unhelpful?

Huh? Jack was not unhelpful or unpleasant. He was being sensible.
I know when I read your opening post I thought to myself..."Why are you asking random people on the internet vs. calling the company and asking them?"

 

[army judge]

I was hoping there were firm standards written into law that they had to base their refund on. Maybe the Magnuson-Moss Warranty Act.

Hope springs eternal, however, you might wish to review EXACTLY what Magnusson-Moss does.

As with most federal laws, the hype far exceeds what the act does.

Magnuson Moss Warranty-Federal Trade Commission Improvements Act
Tags: Consumer Protection Appliances Automobiles
Mission Consumer Protection
Law 15 U.S.C. §§ 2301-2312

Title I of this Act authorizes the Federal Trade Commission to develop regulations for written warranties. The Act directs the Commission to establish disclosure standards for written warranties, specifies standards for "full" warranties, limits disclaimer of implied warranties, and establishes consumer remedies for breach of warranty or service contract obligations. The E-Warranty Act of 2015, Pub. L. No. 114-51, 129 Stat. 494, amending this Title, requires the Commission to revise its rule on pre-sale availability of warranties to provide that disclosure of a warranty on the manufacturer's website complies with the rule so long as (a) the location of the website and an offline means of obtaining the warranty are indicated on the product, packaging, or manual, and (b) the seller makes the warranty available at the location of the sale before purchase.

Magnuson Moss Warranty-Federal Trade Commission Improvements Act
...


Magnusson-Moss Warranty Act Text - LAWS.com
...


Federal Register :: Request Access
...

 

[adjusterjack]

I've read my warranty and it doesn't answer my questions.

You are welcome to upload a copy and we'll take a look at it. One of us may catch something you missed.

Can I ask why you're a moderator if you're unpleasant and unhelpful?

I get comments like that every time I give somebody bad news.

 

[Tax Counsel]

Hi all.

Our 3 1/2 year old LG refrigerator has been declared dead by LG. We have a claim number and they will write a check for the prorated amount.

Obviously the numbers they use to compute the prorated amount matter. From the information you provided I can say whether the computation is reasonable or not.

I've found depreciation calculators online and the depreciation rate is 6.67% for refrigerators. That would mean a check for over $1400. Is the depreciated value what I should expect from LG? Or, are they two different things?

Depreciation is an accounting and tax concept to account for the loss in value of an asset over time due to normal wear and tear. There are several methods of depreciation. The straight line method of depreciation is essentially a pro rata computation of value.

Also, is the amount they offer negotiable?

Whether LG is willing to negotiate on this or adopt a take or leave it attitude with the offer it initially makes is only something LG can tell you, It doesn't hurt to try negotiating it though.

Without reading your warranty I cannot say what LG is obligated to do for you. You'll want to read it carefully and make sure the company is honoring what it promised in the warranty.

 

[zddoodah]

Our 3 1/2 year old LG refrigerator has been declared dead by LG.

I very much doubt that. LG is a Korean corporation that likely has no employee or agent who has any knowledge about your refrigerator (other than it was manufactured). Who exactly made this declaration (not a name, of course) and how did this person acquire knowledge needed to make the declaration?

I've found depreciation calculators online and the depreciation rate is 6.67% for refrigerators. That would mean a check for over $1400. Is the depreciated value what I should expect from LG? Or, are they two different things?

Why would you expect anything from LG? I guess there's some warranty in place that you didn't mention and which is still in effect after 3 1/2 years. If that's the case, then the warranty dictates what, if anything, you're entitled to. However, since you didn't even mention the warranty, we obviously have no way of knowing its terms.

 

[flyingron]

Good luck getting it. LG promised us a check for a brand new unit that blew two compressors in a year, but we never got it. It's hard to find people to even work on LG stuff because they have a policy of not paying out warranty claims.