My TC died last September, 18 months after I bought it. I had read that people had success getting Apple to replace them, but it seemed like a hassle, so I never did it.
I ran across this thread earlier today, and thought I'd finally give it a try. I didn't have Apple Care on it, or any of my current machines, as they are all 3+ years old.
I called the Apple Support number. Told them my TC wouldn't power on any more. They asked for the serial number. I gave it, and then they said they had two questions for me... 1. Have I tried a different outlet? Yes. 2. Power it on with a paperclip or pen pushing in the little button on the back, and see if it does anything. I did, and no, no light, nothing.
The support person said that he'd send me a replacement TC because mine was within the range of those reported with a known issue. He said I'd have to send my non-working TC back (which I had expected as that is what I'd heard from others).
He asked for my CC# and that they would not charge anything, but just authorize the amount of the TC on my card, and only actually charge it if I didn't send mine back. I told him that I don't have any credit cards, only a debit card and that I didn't have that much money in my bank account to have it authorized (which means that that money is technically tied up and can't be spent until the authorization/hold is removed). I asked him if I had to have a CC in order to do this... How do you handle it in other situations? I know that there are people like me out there who don't have credit cards.
He said "can you hold a second?" after about 3 minutes, he came back and explained that they were going to send me a new TC - still a 500GB one... I was a little surprise by that, and asked if it was a refurb. He said no, so whether that is true or not doesn't really matter as it is better than the dead one I have now...
Finally, I asked him how I go about sending my dead one back. He surprised me by saying that since they were able to bypass the credit card requirement, that I didn't need to send it back. I was totally not expecting that!
So now, I have a new TC on the way, for one that has been dead for 9 months, and I can just get an enclosure and take the HDD out of my dead TC and have a "free" (so to speak) external 500GB HDD - which is great for me as funds have been tight, and I don't really have anything larger than 320 GB right now. Now, I have the TC of 500 GB for Time Machine, and my old TC drive as a normal, external HDD.
Yay!
So, I write this mainly to say, that if you have a dead TC, you can still call Apple and get it replaced! I didn't expect to get a replacement, let alone have them send me one without me having to send mine back!