Service contract*********** was never legally entered because no service documentation was ever sent to me. I requested a full refund and was told to call VSC who never anwser their phone or return voicemail messages. I do not even have any documentation from VSC to contact them and instead will rely on the BBB address on file. I requested a full refund and was told that it will be prorated. I was not allowed to pay anything until one month or more after our initial phone conversation which means that part of my mileage would already pass **** would be counted against me for proration. This is a fraudulent practice and very deceptive to the uneducated consumer. I submit that their are many fraudulent practices by this company and their shell game of another company to collect the money and still another company to administer service contracts.
Full refund as no legal contract was ever entered and no service agreement was ever received by me in the beginning. Likewise, it is fraudulent to hold mileage against me for proration that was made before the first payment was even made.
Mr.******* contacted our company on 7/2/2014 to inquire about a letter that he received from our company offering a service contract on his 2007 Mercedes ML320 CDI. Our customer was price shopping a service plan on his vehicle because he indicated to our company that we were $150.00 cheaper than the last company he purchased coverage with less than 30 days prior. According to our customer, he had already purchased the policy with the other company and we explained that a 30 day money back guarantee is standard with a service contract and he just needs to exercise that right. Our customer agreed to the terms explained to him via the telephone with our company and we also explained that he has a 30 day money back/right to review period with us as well. With a down payment paid by our customer to our company, the policy was processed and sent out to the policyholder on 7/9/2014 to the address in which he provided us. We did not hear from the policyholder until more than two months later and the only reason we were in contact with him is because his monthly payment was late. It was our company who actually contacted him for the past due payment to make sure his account was current. On 9/4, 9/9 and 9/10 we attempted to contact the policyholder. Each attempt was transferred into a voice mail that was not set up. On 9/11 we finally reached the policyholder in an attempt to inform him that his account was past due. Our cs rep explained to the policyholder that the account was past due and asked him if he had any changes with the credit card that the payment was being charged to. After our cs rep explained to the policyholder which credit card the payment was being taken from, the policyholder said that he made a mistake in giving us that account, which is call "higheraccount" and that account he only uses for school and he needs to switch the account from which the payments were being taken. The policyholder also indicated that he received an email about his past due payments on the service policy on his car and he just passed right over it. The policyholder provided our cs rep a new credit card number and authorized us to charge the past due payment on the card given. We sent the policyholder a confirmation email of the transaction as well. It is worth noting that the policyholder never once said anything about not receiving his policy. We did not hear from the policyholder beyond this point until we attempted to contact him again for a past due payment. On the first attempt, we successfully reached the polcyholder on 11/4/2014. This is an exact quote of the content on that call after our CS rep explained to him the reason for the call attempting to bring his account current. The policyholder said, "Actually I am glad that you guys called. I don't have your paperwork anymore and I can't get a hold of the new owner. The car has been sold and I am not sure if the new owner wants to transfer service. I'll have to call him. I am trying to get a hold of him. Hopefully in the next day or two I can get a hold of him but the car is in Boston now and I think he said he wanted to keep service but I am not sure. I'll call him and give him a heads up that if he wants to continue service that he needs to call you guys and do the $50.00 transfer fee." Later in the call the policyholder became very upset that he was not able to receive a refund on the money paid in to the policy if he transfers the coverage to a new owner. He became even more enraged when we explained to him that he would receive a prorated refund if he decides to discontinue the policy because he had never used the policy. The cs rep stated the cancellation policy is in the contract that he received and the policyholder stated and I again quote, "no, it is not stated in the contract, I have read through the contract, your contract uses very verbose and vague terminology. That way you can get people." Our cs rep tried to explain what the cancellation procedures are stated in the policy and was cut off by the policyholder stating that he will see us in court and then he proceeded to terminate the phone call. That is the last time we had any contact via telephone with the policyholder.
Below is the cancellation policies and procedures listed in the contract that was sent to the policyholder and by his own admission that he received.
Cancellation of Service Contract
YOU may cancel this CONTRACT by contacting the VENDOR or ADMINISTRATOR.
Requests received within 30 days of the CONTRACT purchase date will receive a full
refund of the amount YOU paid
for the CONTRACT, less any claim payments that have
been paid or approved.
Requests received after the first 30 days are subject to a pro-rated refund. The
ADMINISTRATOR will calculate the
total days and mileage that the CONTRACT was in
force (whichever is greater) as compared to the total term of the
CONTRACT. YOU will
receive a refund of the unused portion of the CONTRACT less any claims that have been
or approved and less a $50.00 cancellation fee. The amount of any refund due will be
applied to any outstanding
balance of the CONTRACT charge.
To initiate a cancellation YOU must contact the VENDOR or ADMINISTRATOR to complete and sign
a cancellation form,
or mail written notice to the ADMINISTRATOR which includes YOUR:
CONTRACT Number, Full Name, Telephone number, reason for cancellation and YOUR signature.
A notarized odometer statement or a receipt from a nationally recognized
company that includes
YOUR Vehicle Identification Number, current mileage of YOUR VEHICLE and the date of VEHICLE
service must accompany YOUR request to cancel. The odometer statement or receipt that includes
YOUR VEHICLE'S mileage
must be dated within 15 days of YOUR request to cancel (except in the
case of repossessed, stolen or totaled vehicles. The ADMINISTRATOR may require supporting
documentation under these circumstances).
In response to the policyholder's desired resolution, the policyholder DID receive the policy that we sent to him on 7/9/2014. The policyholder never contacted our company stating that he did not receive the policy. When our company contacted the policyholder on 9/11, he never stated that he didn't receive the policy. When our company contacted the policyholder on 11/4, he clearly stated that he received the policy. In regards to the policyholder's claim that it is fraudulent to hold mileage against him for proration that was made before the first payment was ever made is unsubstantiated because his prorated refund was based solely on the time used of the policy and not based on mileage used.
In conclusion, we are very sorry for the misunderstanding that the policyholder had with our company but by his own admission, he received the policy and also indicated that he read the policy enough to form an opinion of the policy. The policyholder never initiated any contact with our company after receiving the policy to express his concerns with the policy nor did he ever indicate that he had any issues with the policy when we contacted him for a past due payment; he just made a payment with our company over the telephone. The policyholder also knew about the 30 day right to review/money back guarantee because we explained that to him before even setting the policy up with us so that he could discontinue the policy that he already had for less than 30 days with another company. Our customer had an active policy for several months after the 30 day review/money back guarantee period with our company. We have to follow the guidelines that are clearly outlined in the policy. Even though we did not receive a letter of cancellation from the customer, which is what the policy states, we used information from ********, our payment processing company stating that he filed a complaint against them as well, also sent his complaint to 3 Attorney's General and 3 newspapers. We used this information that our partner ******** sent to us as his cancellation. We used the date of 11/4/2014 as his cancellation date, which is the date he indicated to us via telephone that he sold the vehicle and he wished to cancel the policy. We based his prorated refund solely on time and based it on the date of 11/4/2014. We sent Mr.******* his prorated refund in which he is entitled on 11/12/2014 for the amount of $394.99. Mr.******* has already cashed that check on 11/24/2014.
The policyholder had an active policy with our company for several months and just like car insurance, we cannot provide a full refund just because he may have not used the policy. We have to hold true to the guidelines of the policy and he is entitled to a prorated refund, which he has already accepted and cashed as of 11/24/2014.
Lastly, we would be glad to send you any and all .wav files of phone conversations between the policyholder and our company. If there is anything else that we can do to further assist in this case, please notify.
(The consumer indicated he/she DID NOT accept the response from the business.)
Very unprofessional writing and once again pushing the blame and responsibility on the customer. The complaint must have touched a nerve in its truth. My evidence supports my story so we will see them in court. DO NOT BUY FROM THESE PEOPLE IT IS A SCAM....
Final Business Response
We are very confused and amazed as to why the consumer would believe this company is a scam. Listed below are the general facts of this case:
1.) 7/2/2014 - The consumer contacted our company in regards to a marketing piece they received in the mail offering and a service protection plan on their vehicle.
2.) 7/2/2014 - The consumer purchased the policy and we sent them the contract via the mail.
3.) 9/11/2014 - We initiated contact with the consumer in regards to a past due payment.
4.) 11/4/2014 - Consumer initiated contact with our company to transfer the policy to a new owner being fully aware of the transfer procedures and transfer fee of $50.00. On that call, the consumer admitted that they received the policy and must have misplaced it but they still knew the details of what the policy stated in regards to transferring the policy to a new owner. At this point, the consumer just wanted to discontinue the policy and believed they should receive all their money back even though they had an active policy for several months.
5.) It was this miscommunication that seemed to enrage the consumer. VSC Administration always follows what is stated in the policy, that is the only way to make it fair for every consumer. We are not going to elaborate anymore as we have already provided all the facts in great detail in our previous response.
As a company, we hold several thousand active policies and market to hundreds of thousands of consumers. Prior to this complaint, we have had only 1 complaint with the Better Business Bureau and we have thousands of happy satisfied customers. We pride ourselves on great business practices.
Also, as a company, we don't provide preferential treatment for a customer just because they can scream louder than the next person but that being said, we do greatly value our relationship with the Better Business Bureau.
It is because of this fact that we have decided to provide the consumer with a full refund, instead of the prorated refunded that has already been provided. This is in spite of the fact that the customer had an active policy for several months and claims could have been adjudicated during that time. VSC Administration will be refunding the consumer the remaining portion of the full refund as long as the consumer accepts this response and the BBB considers this matter resolved.