SUBMIT A COMPLAINT

Consumer Direct Warranty Services (CDWS) / Denied transmission claim

1 Hatboro PA, PA, US Review updated:
Contact information:
Phone: 215-621-9928, 215-444-9003

I found AAAutoWarranty LLC (3794) (West Deptford, NJ 08096, [protected] Jeff Golden, Customer Service Manager) online and saw no complaints at BBB. I told them I wanted bumper-to-bumper coverage on my 2004 Chevy Impala (@90, 000 mi.). They recommended several policies, I took the top of the line (Secure Choice), costing $2, 110 for 5 years, broken or worn. Found out they had another warranty company with a higher priced policy for 3 years coverage. I declined, but I then realized AAAuto is a broker of policies, not the warranty company. Eventually, I received my warranty package from CDWS.

When I experienced intermittent transmission "slippage" I took my car to AAMCO Transmissions in Ambler, PA (a fleet facility). They got an ok from CDWS to move forward to identify the problem. "Torque converter failure" was denied outright by CDWS. Warranty says "Torque converter is covered only if damaged by failure of an internally lubricated transmission Covered Component and condition." Because AAMCO had never had "torque converter failure" denied (by any extended warranty company in the 19 years the manager had worked at AAMCO), they had to resubmit claim to be more precise in identifying the source of the damage to the converter. "Worn valve body" (the brain of the transmission) caused damage to the converter. Denied again by CDWS. I complained; they sent an "independent" inspector who subsequently submitted a report to CDWS contrary to the conversation he had with the AAMCO technician at the site while examining the transmission. The inspector reported back to CDWS that there was "no visible damage or failure to the torque converter and valve body.” Claim denied by CDWS again. The AAMCO technician's jaw dropped when he heard.

AAMCO says torque converter failure is nearly 50% of the reason why a transmission fails. If it is not covered, then you really don't have coverage of your transmission. CDWS, as well as USFidelis, narrowly defines a transmission as the "lubricated parts", and so they can fudge around with that and get out of any claim they choose. Alternatively, they can send over their "independent" inspector to diagnose it as a problem not covered by the warranty.

I would be happy to join in any class action law suit against CDWS, USFidelis (who has an almost identical warranty) and other preditors like them. I would include in the law suit the warranty broker, AAAutoWarranty, because they are aware, or should be aware of the many complaints against CDWS, yet they continue to offer these useless warranties to the unsuspecting public.

By the way, their arbitration option has nothing to do with identifying the real problem with your car. They will only call in an arbitrator if there is an argument over the interpretation of the warranty.

I hope the Warranty Investigation Bureau has teeth.

Sort by: UpDate | Rating

Comments

  • Da
      Dec 21, 2009

    Any update on the subject?
    Did you find a Class action lawsuit you were looking for?
    Thanks,

    +1 Votes
  • Da
      Jan 02, 2010

    Please see real complaint about AA Auto Protection / AA Auto Warranty in the following links.

    https://www.complaintsboard.com/complaints/aa-auto-warranty-aa-auto-protection-c293721.html

    /URL removed/

    http://complaintwire.org/Complaint.aspx/8Cp-JN8zRACVqgjMVmSljw

    +1 Votes
  • Ja
      Mar 04, 2010

    Hello All:

    I'm 100% in agreement with this individal complaints. I too purchased a warranty agreement with CDWS and my claim was denied. The items that are covered on page #2 of the agreement, were denied according to the ( exclusions) on page#3 of the agreement. The exclusions are written so that most failures are not covered. This company is a scam, and I would like to become involved in any law sues against this company. I can be contacted at [protected]@aol.com.

    Good Luck!!
    Sincerely
    Jam

    +1 Votes
  • De
      Mar 10, 2010

    To all who have written their stories,

    I am grateful. I was solicited this morning by "an agent for VW offering a factory warranty." I was so impressed that I whipped out the card and even went so far as to give the number initially to a second rep after grilling the salesperson on the company, American Auto Warranty. Meanwhile, I was online searching for the site. When I perused it, there was still no alarm, and I was convinced that this was a good deal.

    However, when I was transferred to another individual to go over the transaction and record the voice receipt, the rep identified the company as CDWS. I stopped there and asked to confirm the company from whom I was buying the coverage once again, as a swift change in the name of an enterprise in the final stage of contracting is a red alert.

    I halted the conversation and searched online to discover your comments instantly. I was moments away from making a $2000 committment... Thanks.

    +1 Votes
  • El
      Apr 09, 2010

    We too had our claim denied just this week. They only wanted to pay $70 towards the clutch fan, but denied the ac compressor/condenser, the throttle positioning sensor and the cv joint rubber boots of the front axle. We are looking into taking them to small claims court as the dealership also had difficulties with them.

    BTW the dealership (Chrysler Dodge) recommended us a true extended warranty they are constantly direct dealing with. So everyone, if you are looking for such thing like extended warranty, ask your local reputable dealer ship first. Wish we had!

    +1 Votes
  • Da
      May 28, 2010

    I'm actually shocked! They wanted to pay $70 for the fan. They are known to give you at multiple reasons why they won't pay for any of the claim.

    +1 Votes
  • 94
      Jan 11, 2011

    Department of Insurance Slams Consumer Direct Warranty Services for Unlicensed Sale of Insurance

    Dilbert taps into consumer frustration with the comic strip posted below. Call it wry humor. But the California Department of Insurance doesn't think consumer fraud is funny. Whether they are referred to as "service contracts, " "extended warranties" or "mechanical breakdown insurance, " vehicle repair agreements are a big profit center for new and used car dealers. Telemarketers or internet schemes may tout them as well. Often such contracts are unnecessary. Even illusory. Some of these products are legal, but many are not. In the midst of a slick sales pitch, almost no one reads the prolix printed warranty form. That is a mistake Dilbert's "confusopoly consultant" wants you to make. Now the Department of Insurance is clamping down.

    For many years, car dealers have claimed that these after-market products do not qualify as insurance and they do not have to be licensed to sell them. That may change. On June 17, 2010, the California Department of Insurance issued a Cease and Desist order against Consumer Direct Warranty Services and related entities. You can read the Department's full press release here.

    Some dealer service contracts fall within an exception to the insurance rules. However, in order to exploit that loophole, car dealers must follow certain procedures, have back-up insurance, provide cancellation rights and comply with other regulations.

    "If you want to sell insurance in California, you must obtain a license, have adequate financial reserves and you must not deceive consumers, " said Commissioner Poizner. "In order to protect California consumers, there are specific requirements for insurance companies seeking to do business in California. If companies do not abide by these requirements, they will not be permitted to sell insurance in our state."

    The Insurance commissioner's website goes a step further to promote consumer protection. Check out its "Guide to Auto Service Contracts and Agreements" here. If you have purchased a service contract or extended warranty that does not comply with these rules, contact us even before your car breaks down.

    All scam victims
    Please contact California Department of Insurance
    David Richter
    [protected]
    They are recording this case now

    0 Votes

Post your comment