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Consumer Direct Warranty Services / claims denied

1 17595 Harvard, Suite C-3800, Irvine, CA, United States Review updated:
Contact information:
Phone: 1-866-6465957

I purchased the warranty on 4/15/2008 and had not used it until recently. I have had two claims denied regarding airconditioning to my 2007 tahoe. The warranty manual states the problem is covered but the company has denied the claim. They stated the reason for not covering the air condition problem was due to the size of my tires, which are factory tires. They requested a picture of the vin # and tire size, which we sent. The return email from the company had no leg to stand on when it came to the tires. So, the next email is now requesting copies of maintenance services, once jiffy lube sent everything, the return email states, they want customer coopies, as if what jiffy lube sent was not enough!!! I am tired of dealing with this company and I want my money back! Any information would be greatly appreciated in regards to this company!!!

Nl
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  • 94
      11th of Jan, 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
    1-916-854-5841
    They are recording this case now

    +1 Votes

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