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Warranty America Complaints - Scam and cheating

Review all Warranty America complaints

Warranty America

Posted: 2008-12-04 by Richi  [send email]
Scam and cheating
Complaint Rating:  100 % with 1 votes
Company information:
Warranty America
United States
warrantyamerica.net

I continue to experience unreasonable difficulties with this firm. Each and every time I have had to file a claim they have used deceptive tactics to attempt to circumvent their responsibilities. My most recent was a case of a defective differential. My shop contacted them for authorization for the repair. The shop is a reputable organization and all mechanics are trained and certified. The shop and also the manufacturer note that the method for repair of this situation is to replace the differential with a factory rebuilt unit and that no internal parts can be replaced by the typical shop.

After the shop contacted Warranty Americas claims representative, Chris, they were informed that Warranty America would only authorize the shop to tear down the differential and repair the internal components. My shop, Silverstar Service, noted that they did not have the ability to perform this repair and knew of no shop in the state that did this type of work. They requested Warranty America provide the name and location of a reputable shop to perform this work. The agent for Warranty America, after some effort noted that they were also unable to find a shop that would perform this service and instructed the shop that it was my responsibility to a capable repair facility.

In the interim I have contacted Diamler directly and have been informed, that this is not possible as no shop or dealer would have the specialty tools needed to perform such a repair and that the cost would significantly exceed the cost of the rebuilt unit authorized by them. Of course Warranty America knows this and is using this dodge to avoid their responsibilities.

I am fortunate that we have several vehicles and have the time and resources to fight this situation. I am not sure at this time how long this process will take but frankly I will not stop until this is litigated, even if it means I must go to Colorado with my lawyer. Such fraudulent tactics cannot be allowed to continue!
Comments United States Auto Insurance & Loan
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 310 days ago by   Chuck Menninger 0 Votes
Here's my problem with this company...

Copy of my BBB complaint...

Consumer's Original Complaint :
This company is always difficult to deal with. They use unethical business practices to avoid paying a bill, especially the higher dollar amounts.I have an extended bumper to bumper warranty, which this company has setup techniques to get out of paying the bill.I took my covered Corvette to Evans Chevy in Front Royal, VA. The dealer diagnosed that my vehicle had faulty fuel pumps. The dealer performed all required phone calls and cooperated with all demands of Warranty America's inspector. This caused my vehicle to spend over two extra weeks in the shop. Warranty America gave the dealer the option of using the sub-standard part that warranty america would ship to them or use the GM part with a life time warranty that I would be forced to pay the difference for. I wanted the GM part and informed the dealer. The dealer installed the parts. Warranty America refuses to pay me anything and denied the claim because the dealer did not give Warrany America my verbal decision to take the GM part and pay the difference. They claim that the dealer not telling them this detail negates their responsibility to me. What is really dumb is that Warranty America said that they were ready to pay if the call was made, but it is now to late to even settle on a reasonable solution. The point is that they owe a minimum of what they were willing to pay for their cheap parts after their own inspector traveled from Washington DC to take pictures of the broken parts.I feel that based on other complaints that I see online, that this company is operating unethically and not fulfilling it's obligations to the customers that paid for these warranties. They talk a lot of talk to sell the warranty, but do not perform as promised.Thank you for your assistance BBB!
DesiredSettlementID: Other (requires explanation)
Product_Or_Service: Extended Vehicle Warranty
Order_Number: WAL-652602
Purchase_Price: 1996.00


Consumer's Desired Resolution:
I want the company to pay what they were going to pay if I accepted the option of America Warranty's non GM parts. I knew that I was to pay the difference, because I did so the last time I had trouble with this company on a simple repair.

BBB Processing

12/15/2008 web BBB Case Received by BBB
12/16/2008 sue BBB Case Reviewed by BBB - Accredited Business
12/16/2008 Otto EMAIL Send Acknowledgement to Consumer
12/16/2008 Otto EMAIL Notify Business of Dispute - Accredited Business
12/17/2008 WEB BBB RECEIVE BUSINESS RESPONSE : Contact Name and Title: Paul Stratch
Contact Phone: 303-420-7488
Contact Email: paulstratch@warrantyamerica.net
First of all, this customer has submitted 2 claims and BOTH have been paid! So he has some nerve complaining publicly on the BBB. That is more than slightly misleading. Second, he should be careful making baseless allegations in public that could harm our very good reputation because we will not tolerate that. Third, WE do not control how long any vehicle is in any shop. We are not the ones doing the work so how can we?! Fourth, the contract terms clearly state no claims will be paid without prior authorization. He cannot blatantly violate the contract terms and then call us "dumb" for enforcing those very terms, which we are required to do.
If this customer can keep his baseless comments and allegations to himself and more clearly explain what he wants from us, I'm happy to look at it. I'm not aware of any difference paid by him, because how could we be. I'm only aware of the 2 claims we have paid.
12/17/2008 sue EMAIL Forward Business response to Consumer
12/18/2008 WEB BBB BBB REVIEWS CONSUMER REBUTTAL TO BUSINESS RESPONSE : (The consumer indicated he/she DID NOT accept the response from the business.)
I submitted the complaint on the evening of 16 December after a Warranty America employee said that my claim was being denied.
Events since the complaint was filed...
On the morning of 17 December 2008, I secured an agreement with the car dealer for them to furnish me with a notarized statement of the events that took place while my car was in their care. The contents of which I have not seen yet. I only got a verbal of some of the things that the dealer witnessed and experienced.
After securing this agreement from the dealer, I contacted Warranty America to ask them to fairly settle my claim. The lady on the phone said that my claim would be settled, but she needed to determine the amount that I would be reimbursed. At first, she mentioned $739. I then informed her that I paid out $1769 for the repair. I knew that Warranty America, from my first use of the warranty, would only reimburse for the cost of parts they acquire from their resources (a fact that would have caused me not to purchase the plan - its a Vette). However, a thousand dollars difference did not sound logical. She said that she would look at the bill I faxed in again and personally process and mail me a reimbursement. I don't know what the reimbursement is, so I don't know how I will feel about the fairness of it. After all, I was sold a bumper to bumper warranty with no mention of non-GM parts for a "Corvette" at the time of purchase. This fact only came to light on the occasion of my first reimbursement from a past repair last Summer.
 226 days ago by   Paul Stratch 0 Votes
Anyone who reads this simply needs to read my response to the customer's complaint with the BBB. These contracts are not "blank checks" to be filled in by the shop or customer for whatever amount they choose. We are obligated to follow the terms, and we must document all decisions. There must be some basis for what the shop is doing or we cannot authorize work under the contract. If a customer is ok with a shop just billing them to the moon, that's their perogative. I would think most people would WANT to know what we are authorizing and why and not immediately assume we are trying to harm them in some way.

Again, we do not do the work. We do not set the prices - that is all done by the shop. We only tell them what the contract will or will not allow us to pay towards the repairs. We ALWAYS try to work with the shops so that the customers do not have to come out of pocket with any money for covered repairs, and they shouldn't have to. However, ultimately the shops control that, and we cannot just give them a blank check as some seem to want.

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