Extended Warranty Leader Challenges Industry Attack by Consumer Reports

STERLING, Va.--()--N.E.W. Customer Service Companies Inc. (NEW), the leading provider of extended service plans, buyer protection services and product support, is challenging an attack on the extended warranty industry made yesterday by Consumer Reports in an article about extended service plans, which NEW is calling misleading.

The Consumer Reports article states that a high percentage of respondents to a recent survey disliked pushy sales pitches related to extended warranties and other services, and also warned consumers against purchasing the warranties -- also known as extended service plans -- during their holiday shopping.

"No one likes pushy salespeople -- that's not a surprise, nor is it a tactic we support," said Fred Schaufeld, chairman of NEW, who founded the company more than 26 years ago and was a key architect of the extended warranty industry. "However, Consumer Reports has shown a continued lack of appreciation and understanding of the services we provide and has been frankly unfair in its coverage, which has an almost venomous tone."

In a response submitted to the Consumer Reports Web site, Jamie Breneman, NEW marketing director and contributor to the company's Savvy Shopper blog, states, "There are many benefits of protection that often go untold and even more myths that continue to be repeated throughout the media that are simply untrue."

To help further educate consumers on common misperceptions about extended warranties, Breneman has posted a new blog entry at www.thesavvyshopperblog.com that outlines top myths about extended warranties and the truth behind them.

This is the second year within the past three that Consumer Reports has issued warnings in its preholiday media campaigns that NEW believes to contain misleading information about extended warranties.

"What's unfortunate is that most of the rest of the country's consumer media, who are increasingly faced with doing their job with smaller staffs, simply restates what Consumer Reports says often without seeking to verify the information or get the other side of the story," said Breneman. “This just seems to be perpetuating a lack of understanding about the extended service plans that are available to consumers today.”

"The service plan industry has evolved, but the reporting on its value unfortunately has remained the same," said Schaufeld. "All we are asking is that consumer reporters tell the whole story so consumers can make a more informed decision about whether or not an extended service plan is right for them."

About N.E.W. Customer Service Companies, Inc. (NEW)

NEW is the leading provider of extended service plans, buyer protection services and product support, providing coverage to more than 150 million consumers. Founded in 1983, NEW offers retailers and manufacturers innovative, customizable solutions for the delivery of customer service and support throughout the consumer ownership experience. NEW's services provide revenue opportunities while building customer loyalty at every touch point -- from purchase through trade-in to next purchase. Based in Sterling, Va., NEW operates 10 U.S.-based call centers and 10 work-at-home locations supported by a team of more than 5,800 employees. For more information, please visit NEW at www.newcorp.com or call 1-800 WHAT’S NEW (1-800-942-8763).

Contacts

Focused Image (for NEW)
Kristina Messner, 703-678-6023
kmessner@focusedimage.com

Contacts

Focused Image (for NEW)
Kristina Messner, 703-678-6023
kmessner@focusedimage.com