Connecticut Attorney General's Office

Press Release

Attorney General Announces Service Net To Honor All Tweeter Extended Warranties

January 21, 2009

Attorney General Richard Blumenthal said today that extended warranty provider Service Net will honor 166 extended warranties sold through bankrupt Tweeter stores in Connecticut even though the chain failed to pay it.

Responding to an inquiry from Blumenthal's office, Service Net, based in Jeffersonville, In., this week informed the attorney general that it will honor all extended warranties sold to Tweeter customers in Connecticut regardless of whether it was paid for them.

"I laud Service Net for doing the right and honorable thing, providing coverage to 166 Connecticut consumers who paid for extended warranties whether it received their payments or not," Blumenthal said. "Consumers should not be punished -- denied coverage they purchased in good faith -- because of Tweeter's failure to pay. Tweeter customers who bought extended warranties should see them honored -- and Service Net, to its credit, agreed.

"I will continue fighting for consumers seeking property, warranties and other rights due them after a business goes bankrupt."

Tweeter bought the warranties from Service Net and then sold them for a markup. Tweeter made its last payment of $7,285 to Service Net on October 1 of last year for 86 warranties it sold in August. Tweeter never paid Service Net for the 107 extended warranties it sold in September and 59 more in October. Consumers paid a total of $42,480 for the 166 warranties.

Tweeter closed for good around December 1 last year.