'I'm angry,' says Thunder Bay, Ont., Sears customer over extended warranty loss

A woman in Thunder Bay, Ont. says she feels she, and other customers, were taken advantage of by Sears, after the folding company announced on Monday that extended warranties will not be honoured.

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Earlier this year, Lys Clifford purchased a fridge, stove and dishwasher from the department store, andspent close to $800 onfive-year extended warranties that she now won't be able to use.

"I'm angry with [Sears]," said Clifford, noting that her family have been loyal customers of the store for decades.

"I don't think they treated us right."

Since the manufacturer's warranty covers the first year, Clifford said the extended warrantiesshe bought hadn't even kicked in when she learned that the store was going into liquidation.

Consumers rights are low on the totem pole in a bankruptcy.- Ken Whitehurst

She's concerned that manyother customers will be in the same boat.

"So it's not just my [money]," she said. "It's how many other people, in Canada, are going to be out this amount of money?"

Sears has stated that only warranties purchased within the last 30 days will be refunded.

Attempts to reach the department store have also been frustrating, said Clifford. Before the companyannounced its intentions regarding the warranties on Monday, Cliffordtried to call Sears for information, and waited on hold for more than five hours with no answer.

A 'corporate Dunkirk'

That lack of response is not surprising, saidKenWhitehurst, the executive director of the Consumers Council of Canada.

"The Sears situation is going to be like a corporate Dunkirk," he said."There are going to be a lot of people feeling stranded on the beach, and hoping someone will come rescue them."

"It is a bankruptcy and a lot of the front end services that people expect are going to be affected," he continued. "Consumers' rights are low on the totem pole in a bankruptcy."

Whitehurst said he advises anyone who purchases an extended warranty from any company toexamine them carefully.

In some cases, a third party such as an insurance company or manufacturer may also be responsible fora warranty, he said.

"Sears has been a long-time trusted supplier, in particular of small and major appliances, and a lot of protection plans have been sold under the Sears brand, so people are definitely going to have a lot of questions," he said.