This is an onoging investigation that has led to a pending class action lawsuit against Stainsafe, Inc. in which it is alleged that Stainsafe improperly refuses to repair or replace furniture that is under a Stainsafe warranty.
Stainsafe sells furntire warranties to consumers primiarly though third party dealers. These third party dealers are often times furniture stores and other retail outlets.
Consumers have complained that Stainsafe, Inc. marketed, sold, distributed and issued warranties that contain open-ended, illusory terms that effectively nullify the existence of any coverage at all, and even if coverage did exist, the terms effectively allow Stainsafe to exclude coverage for warranty claims for any reason at all.
The class action lawsuit specifically alleges that, as a matter of policy, practice and procedure, Stainsafe routinely excludes coverage for warranty claims for reasons that are not specifically outlined in the terms of their furniture warranties. The class action lawsuit alleges that Stainsafe unilaterally creates standard-form reasons to deny warranty claims. These standard-form reasons to deny warranty claims, include, but are not limited to, that the furniture damages to be repaired (or replaced, if repair is not feasible) “cannot be attributed to any single occurrence or accident,” “were the result of normal wear from customer usage,” and that “were not reported when they occurred, but when they were discovered” by the consumer.
As a result, Stainsafe has engaged in deceptive, unfair and fraudulent practices causing damage to consumers throughout the United States who have purchased Defendant’s furniture warranties, submitted claims, and subsequently had them denied.
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