Direct Buy Auto Warranty / SCAM

CA, United States Review updated:

When purchasing an extended warranty for our used veh we went with Direct Buy Auto Warranty. A $500.00 gas card was offered as an incentative to pay the full premium up front. We were told we would get the gas card in approximately 4 months. I did a follow up on the offer today and found out the gas card is issued after our warranty expires. In our case that is 5 years from now! Shame on them. I can on guess how many gas cards are returned because people move and they do not receive updated information. Buyer Beware. I wonder if any repairs will be paid for? Time will tell

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  • Co
      May 23, 2011

    I hope you also know that the plan is worthless in the state of California! In CA you can ONLY sell an actual mechanical breakdown insurance policy, not an extended warranty and Direct buy is NOT a licensed california insurance company!

    0 Votes
  • 10
      Jun 10, 2011

    Direct buy auto warranty is a SCAM !!! The gas card is bull sh__ ! Salesman lie through their teeth and when you want to use to warranty GOOD LUCK...they deny every claim. THe BBB will be informed and all other complaint fraud sites.

    0 Votes
  • To
      Jul 28, 2011

    I am hoping that they will pay any upcoming claims, but yes I have fallen for the same scam. The salesperson advised me that I would have to fax them a form and would receive the gas card within 90 days. I have been following up repeatedly with them, and they are telling me it will be coming. Then today, I was sent the same form however it now says, "you may redeem your gas gift card after your contract term has expired". Does anybody have the original form? I am 99.9% sure that I didn't sign this original form.

    0 Votes
  • Ma
      Oct 09, 2011

    This is a warning to all consumers that Direct Buy Auto Warranty is a scam outfit. They are 100% fraudulent. After taking my 2001 Mercedes to an ASE certified shop, for a covered repair, DBAW decided that they simply did not want to pay the claim. They first advised me that I had previously canceled my warranty voluntarily. I then asked them to provide me with the following two things:

    #1). Anything in writing that shows that I canceled my policy

    #2). A copy of the canceled check where they refunded any money back to me upon the so called cancellation.

    They obviously could not provide either of these 2 documents, so they then changed their story to say that I never paid my premium. I had paid my premium in full in a single payment, and sent them the copy of my bank statement showing the money was electronically sent to Direct Buy Auto Warranty. That is the last that I have ever heard from them.

    They treat their customers the worst that I have ever seen. They are completely arrogant and just don't care. I was told by their representative that us "liberals" in California are always trying to get someone else to "take care of us".

    I am in the process of having this company investigated for their fraudulent business practices. They not only need to pay a lot of people back for denying covered claims, but I am working to make sure that there is also punitive damages. There is also a chance that the principals in this company could be facing some prison time.

    I would like to hear from anyone that has either had a claim that they feel was wrongly denied, or has had their policy canceled because Direct Buy Auto Warranty did not want to pay the claim.

    Please contact me at [protected]

    0 Votes
  • Ja
      Nov 25, 2011

    For those of you here that are concerned, go to complaintwire, and look at pages 9 and 10. I have several long and helpful posts there . I hope they will give you some ideas as to how we can get these crooks to justice and soon. I would like to see if through all of what we have here, and the media, and hopefully if there is a lawyer willing to take this as a class action suit that we can get these guys, and put them out of business. You can either sit and complain, or take action. I am asking who is WILLING to take action. My posts are obvious, and my name is Jay Himelfarb. You will find that post there. Thank you

    0 Votes
  • Ar
      Feb 28, 2012

    Direct Buy Auto Warranty is a fraud. They will never pay any claims. Every claim you file will be denied and they will tell you it is "wear and tear" and not covered. That is what happened to me on my VW Jetta. Then I want to cancel my policy and they need to send me a cancellation form. I have asked 4 times and still have not been sent the cancellation form. If anyone had any luck in cancelling their policy please let me know at [protected]

    0 Votes
  • Ja
      Feb 29, 2012

    Look, They are not going to refund you anything. I have read just about all of the complaints here, and its obvious to anyone that can walk and chew gum at the same time that this company is fraudulent, and getting away with what they do too. The only way that they can be shut down is if enough people come forward to make this noticable. If people were willing to start a class action suite against them, we can, if nothing else put them out of business so that others will not fall prey to there schemes. If anyone is willing to become involved in a class action suite, send an e-mail to this address: [protected]
    When I have compiled a considerable amount of people to present to an attorney, I will post here again, and all will be notified here and on e-mail. I will create a file that can be presented as evidence. I think that it's high time to take action, and stop talking about it. This site as well as others with complaints against them speaks loud and clear. The BBB rating "F" speaks loud and clear. The Attorney General in New Jersey is aware and acknowledges this, and that speaks loud and clear. Unless there is NO justice in this country, then we can forget it, but somehow, I think that there is a loophole, and one way or the other we can force this phony organization to it's knees and make the legal system force them to pay back everyone, and everything, and in spades. They are laughing at each and every one of us. If that sits right with you, then do nothing. If you want action, then act! This is the time to do it, and so lets not just sit idle, but get this ball rolling, and put these crooks out of business. I told them, when I started this with them that I was NOT going away! I can assure you, and them, that I am NOT!

    0 Votes
  • Me
      Mar 30, 2012

    I just signed up wit them and then found this post. I decided based on what I'm reading to not go forward with the warranty. I can't find anything good about Direct Buy Warranty except for what is on their website. The big questions is whether they actually process my request to cancel the policy. We'll see.

    0 Votes
  • Ke
      Sep 05, 2012

    Direct Buy Warranty is a complete scam. This company baits you into purchasing their contract via phone, and of course, everthing in writing doesn't support what was claimed. I have had this contract for 1 year now. Today, my water pump wasn't covered on a 2003 BMW although it is leaking antifreeze and I have to keep putting more in. It wasn't covered because "it hasn't completely failed and is only leaking." However, if I don't make the repair out of pocket, then anything related to that water pump, such as my engine blowing is not covered. That is completely a conflict. Either it hasn't failed, or I need to replace it. Thing is, I "need to replace it, " but it isn't going to be covered by direct buy, although in the same token, they're informing me that it needs to be replaced or nothing else will be covered. I contacted Direct Buy and acted as a new contract purchaser. They tell you over the phone, bumper-to-bumper coverage for the platinum elite which I have and I explained the same exact scenario to the sales rep. Low and behold he said of course that would be covered regardless if it's only leaking. Also, sold me on the idea that they cover all shop rates regardless of which shop you go too. However, that's not true either, they only cover the going national rate which is about $65/hr. I purchased elite because of having a BMW and wanting premium coverage. This company is a complete scam, says things over the phone that contradicts your contract and then chastises you for complaining about unfair representation. I have had $1200 worth of items covered, and have paid $3000+ out of pocket on a "bumper-to-bumper" elite coverage. This company definitely is alert to the fact of what they're doing and each sales rep and warranty rep is trained to say the exact same thing. I've paid for shop rate difference that they initially said was covered. The closer you get to maxing out coverage, the more difficult it gets to get any type of assistance.

    This company needs legal action taken against them as they definitely are aware of their tactics. Try calling a sales rep and see what they say. At any case, I would like all of my out of pocket expenses covered to include this claim. I would like my contract price to be refunded (pro-rated time) and never again deal with this company. Buyers beware and look up all of the reviews on this company before any purchase. Unfortunately, I didn't.

    0 Votes
  • Ja
      Sep 15, 2012

    If anyone knows whether or not these thieves as of this date 9/16/12 have been brought to any kind of justice, Please let me know? They ripped me off big time and if there is a law suite where they are forced to pay back the people they ripped off, Id like to make sure that I dont miss the boat. Send me a reply at

    It will be greatly appreciated

    0 Votes
  • Br
      Nov 13, 2012


    Worst customer service ever! No one can ever answer any of your questions, they say they will have someone call you back from another department and then nobody ever calls! This company just gives you the run around. I wanted to cancel and they offered no refund like they advertised! I would not trust them!!!

    0 Votes
  • Ja
      Feb 21, 2013

    Towards the end of 2011 I posted here. My thoughts on Direct Buy are reflected above. I stated emphatically that I would NOT stop until This criminal organization was stopped and brought to justice. It took much longer than it should of, but a couple of weeks ago I received a letter from the Attorney Generals Office in new Jersey asking me if I was still wanting to continue my complaint against this company. They asked me to fax all information that I had to there office. I did that just this past week. I am actually delighted to know that finally someone has acted and is apparently going to do something about this. It was baffling to me that so many legal organizations around the country obviously knew of the underhanded business practices this pathetic company practiced. . It was even more baffling to see how long that they were allowed to rape unsuspecting clients of hard earned money. Yet finally the New Jersey Attorney General finally stepped up to the plate to do something about them To the folks at the NJAO My hats off to you and thank you!

    To the rest of the legal organizations, consumer affairs etc. that stood by and did apparently nothing I say " shame on you for your lack of reacting to a situation that has hurt so many people.

    To Direct Buy Auto Warranty I say this. I told you way back when that I would not give up my pursuit of you and your cronies. Just the fact that someone is finally stepping up and investigating you is worth all the effort. In the end, You lose and the people that you low lives screwed through the years win. I sincerely hope that you all go to jail for being the thieves and con artists that you are!

    0 Votes
  • Bi
      Apr 06, 2013

    Warranty NOT WORTH THE PAPER IT WAS WRITTEN ON! No legitimate repair was covered. DO NOT BUY FROM THIS COMPANY! (You've been warned).

    +2 Votes
  • Ra
      Apr 30, 2013

    I bought two warranties for both my vehicles. I purchased my policy over the phone after logging on to direct buy warranty website. the agent immediately called after I clicked on "Get Quote".we talked and I gave him an estimated mileage on vehicles. the mileage was just an estimated mileage and he took my credit card info for a dwn paymentand he added a tire and rim policy (for free for purchaseing that day)..I filed my first claim friday the26, april on several isssues including fan clutch/ball joints/injecter issues!!! I was very excited in useing my purchaed auto warranty.. My AUTHORIZED MECHANIC called me and told me hes never heard of a denial based on mileage.When I asked the exact reason for denial..supervisor would not state exactly the reason. . I called dbw customer service and was told a written letter was needed to be reviewed at the corporate level..asked to speak to superviser wand was told the same..asked to speak to my agent the friendly agent with the "FREE TIRE AND RIM POLICY"..he answered and he quickly tranfrred me back to same supervisors. I wanted to fax a copy of a recent oil change(as stated on warranty for sceduled maintenance) no luck!!! LESSON LEARNED DO NOT BUY FROM DIRECT BUY THEY ARE NOT A LICENSED INSURANCE COMPANY IN STATE OF CALIFORNIA!!! FRAUD FRAUD FRAUD

    0 Votes
  • Ri
      Oct 23, 2013

    Direct Buy Auto Warranty is a complete scam and RIPOFF! I never got any documentation stating exactly how I would be billed, only an email with a link to print a copy of my contract - problem is the link did not work so I never Direct Buy Auto Warranty deals in e-documents for legal agreements. This prevents consumers from actually reviewing their contract and realizing they are going to automatically debit your account monthly. The debits are not announced, nor will you get any documentation or notice that it has taken place. I purchased a warranty from them in July 2013 and the first indication that they were fraudulent was when I tried to call them 6 weeks later when I tried to call with a question about how they would bill for the monthly payments and I kept getting a placed on hold. It took 2 additional weeks before I could get someone on the phone and they only answered after I called the number and chose the option to get a quote. As soon as I selected the quote option, BAM! I got through to a real person immediately. When the guy who answered the phone realized I wasn't a new customer, he told me he was busy and I would have to call back later. I called back later that evening and selected the quote option again, not sure if it was the same person but they agreed to cancel, but did not know how much money I would get back, I would have to wait 24-48 hours to get an email with the refund amount. Within 10 minutes of hanging up the phone, the email arrived offering a little over half the money I had been billed. I was furious but had no choice but to agree to cut my losses. I tried to dispute the charges with my bank, but they couldn't help because of the e-contract (even though I never got a copy). I'm thankful, I didn't actually need them for a repair. Heed the warnings, you will lose money with Direct Buy Warranty.

    0 Votes
  • Da
      Mar 17, 2014

    New Jersey AG sues auto warranty company after almost 250 complaints

    NEWARK, N.J. (Legal Newsline) – New Jersey Acting Attorney General John Hoffman filed a lawsuit on Wednesday against a vehicle repair coverage plan provider that allegedly refused to pay consumers when repairs were needed.

    Direct Buy Associates Inc., which does business as Direct Buy Auto Warranty, allegedly violated the state’s Consumer Fraud Act by advertising its vehicle service contractors as warranties. Warranties are offered by the manufacturers or sellers of products, but service contracts are offered by third-parties like Direct Buy Associates.

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    Additionally, the vehicle service contracts Direct Buy Associates sold allegedly provided limited coverage and various exclusions.

    “Consumers are out thousands of their hard-earned dollars because of the alleged business practices of this company, ” Hoffman said. “We are seeking court approval to get restitution paid back to the affected consumers.”

    Close to 250 consumers nationwide filed complaints against Direct Buy Associates, one of the highest amounts against any active company in New Jersey. Some consumers alleged they had to pay for repair costs themselves when the company denied repairs covered under the plan. Other consumers alleged they did not receive full refunds in a timely fashion when they attempted to cancel their contracts.

    The lawsuit seeks the assessment of civil penalties, reimbursement of legal fees and consumer restitution.

    Original Story: N.J. AG sues auto warranty company after almost 250 complaints
    Content provided by Legal Newsline, which is owned by the U.S. Chamber Institute for Legal Reform.

    0 Votes
  • Kn
      Mar 26, 2014

    I just purchased my warranty with them and they are proving to be as bad as the post i'm reading... looking for another warranty reed the contract before buying!!!

    0 Votes
  • Su
      Mar 01, 2015

    ATTENTION CALIFORNIA!! The California Attorney Generals office has been notified! I agree with what I've read here and the issues are consistent. I had a similar issue recently and I cannot let it go and will not let it go. I can see the pains that they have caused by all the writings and I'm feeling it myself but I won't let them get away with it. I trusted them too especially when I seen the many news stations on their website (they show CNN, FOX, Motor Trend, etc) but I can't imagine they're endorsing this but we will soon find out.
    Don't be scammed and let anyone get away with it. This is AMERICA we have rights!
    CONTACT THE CALIFORNIA ATTORNEY GENERALS OFFICE WITH YOUR THOUGHTS AND COMPLAINTS. I hope they find its CRIMINAL FRAUD cause this is unbelievable and it's hurting lots of people.
    That salesman in the phone sure does paint a different picture for everything we're going through.

    0 Votes
  • Da
      Jan 13, 2017

    @Surfers don't get scammed! I bought my warranty from DIRECT BUY AUTO WARRANTY for my truck about a year or so and just found out today online about all the problems. Please keep me informed if there will be a settlement or restitution Put my name in the hat also. Thanks, Dan K.

    0 Votes
  • Ja
      Jun 04, 2015

    as I understand it, the New Jersey attorney general's office is acting on this now and have in fact received a judgment against these crooks. According to my understanding they are going to have to payback restitution to those of us who have lost thousands of dollars of our hard earned money. My hopes ARE that this company will not only have to pay back the funds that we had to front to pay for these repairs to the various auto repair shops, but also the full value of what we had to pay for the warranty itself. I'm also hoping that they'll have to pay back what is considered to be the pain and suffering that they have caused. in addition I hope also that there will be jail sentences for these snakes, as they are in fact criminals, and thieves, and no crime like this should ever go unpunished. I'm sure that all would agree that what they've committed is in fact felony of the first degree. I am thankful for all of you who came forward to tell your stories, because together we were able to gather these snakes and then make them pay one way or the other for real crimes committed against the innocent public.

    0 Votes
  • De
      Jun 25, 2015

    The company called my house and told my wife that they were the company that we signed with and they needed our payment information. After calling them (on hold for 2 hours), I told them I am not paying and that they mislead my wife. They agreed to cancel my policy and issued me a check for the refund. The check has since been returned by the bank. I am back to square one. Do not every sign up with this company. Any attempts to call them results in being on hold for over 2 or 3 hours.

    0 Votes
  • Ge
      Nov 19, 2015


    It's obvious who they are and I read here that the New Jersey Attorney General has already sued them but now it's time that all the other Attorney Generals follow New Jerseys lead and sue them too!!!

    Get your states ATTORNEY GENERAL involved and file a formal complaint immediately.

    +1 Votes
  • Da
      Nov 20, 2015

    my car had problems, I took it to Headquarters Nissan in Columbus ga. I told them I had direct buy auto warranty. My car was there for 8 days before direct decided it was not going to pay for any of the repairs. The dealership advised me that they have had nothing but bad news with Direct buy. I asked for a refund. I haven't heard anything yet. I would like to hear from people who would be interested in a class action lawsuit. This is a fraud we love some feedback at [protected]

    0 Votes

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