BBB Business Review

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Description

The company provides service contracts and after-market extended warranties on automotive and consumer products in the United States and internationally. According to information supplied by the company to the BBB, Warrantech is “a third party administrator and contract agent for private label companies and administers their service contracts." These service contracts include, but are not limited to, automobiles, recreational vehicles, home appliances, home and entertainment products, computers and office equipment. Claims covered by Warrantech contracts are paid by insurance companies that underwrite the warranty-extension and product-replacement contracts it sells.


BBB Accreditation

A BBB Accredited Business since

BBB has determined that Warrantech Corporation meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

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Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised the rating for Warrantech Corporation include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 304 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

304 complaints closed with BBB in last 3 years | 137 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 11
Billing/Collection Issues 1
Delivery Issues 9
Guarantee/Warranty Issues 102
Problems with Product/Service 181
Total Closed Complaints 304

Additional Complaint Information

BBB files indicate complaints allege the company denied valid claims, failed to make needed repairs, had lengthy delays to repair or replace covered items, and failed to return phone calls. Due to the size of the company and the nature of its business, complaint numbers alone do not cause alarm. The mere number of complaints lodged against a warranty company is not nearly as important as the company’s response and the manner in which it resolved its consumer’s issue. After thorough examination of complaints received by the BBB, the following was identified based on the categories of complaints filed.

Appliance Warranty
The major complaints regarding Warrantech appliance warranties allege lengthy delays to repair or replace covered appliances. Specifically, customers reported after placing a claim call, weeks passed before appliances were repaired.

Television Warranties
Although several complaint issues have been made about Warrantech television warranties, consumers repeatedly reiterate problems with lengthy delays, long telephone wait times, failure by Warrantech representatives and supervisors to return calls promised to the customer in addition to having to place numerous and repeated calls to Warrantech to get a service provider to repair the televisions.

Automobile Warranty
Complaints allege the majority of Warrantech automobile warranty complaints center on deceptive and ambiguous language in the contract and refusal to pay valid claims. With regard to complaints concerning the contract, customers complain the contract fails to address which vehicle replacement parts will be replaced with “New” parts versus “Re-manufactured or Replacement parts of like kind and quality.”

Complaints also allege at the time of purchase, customers ordinarily are not presented with the actual extended warranty contract. Rather, consumers are typically provided with advertising information and/or brochures about the extended warranty plan but the actual document and what it covers is not available for review. In fact, the consumer receives the actual extended warranty contract in the mail days or weeks after entering into the contract. 

Customer Reviews Summary Read customer reviews

46 Customer Reviews on Warrantech Corporation
Customer Experience Total Customer Reviews
Positive Experience 8
Neutral Experience 0
Negative Experience 38
Total Customer Reviews 46

Additional Information

BBB file opened: June 01, 1986 Business started: 06/22/1983 in DE Business started locally: 06/22/1983 Business incorporated: 02/28/2005 in NV
Type of Entity

Corporation

Business Management
Ms. Maribel Barron, Compliance Paralegal Mr. Stuart Hollander, Chairman/Owner Mr. Steve Knapp, Executive Vice President of Finance & CFO/Owner Mr. Bruce Saulnier, President of Sales Mr. Sean Stapleton, President & CEO/Owner Mr. Harry Schlachter, Treasurer/Owner Mr. Stephen Ungar, Secretary/Owner
Contact Information
Principal: Ms. Maribel Barron, Compliance Paralegal
Principal: Mr. Stuart Hollander, Chairman/Owner
Principal: Mr. Steve Knapp, Executive Vice President of Finance & CFO/Owner
Principal: Mr. Bruce Saulnier, President of Sales
Principal: Mr. Sean Stapleton, President & CEO/Owner
Business Category

EXTENDED WARRANTIES WARRANTY,OTHER EXTENDED SERVICE WARRANTY/EXT WARRANTY SERVICE PROVIDER

Alternate Business Names
AmTrust Financial Services, Inc. First Choice Home Warranty Program N.S.I. NSI Protection Plus Peak Protection Repair Master Tech 2 Protection Tech II Protection Tech Two Protection Vehicle Protection Plus, LLC VEMECO Warrantech Additive, Inc. Warrantech Advantage Warrantech Automotive, Inc. Warrantech Consumer Product Services, Inc. Warrantech Dealer Based Services, Inc. Warrantech Direct I, L.P. Warrantech Direct, Inc. Warrantech Europe, PLC Warrantech Help Desk, Inc. Warrantech Home Service Company Warrantech International, Inc. Warrantech Management Company Warrantech Management Holding Company Warrantech Management, LP WCPS WCPS of Florida, Inc.
Additional Information

The business met with the BBB September 2012 to discuss the business rating and volume and pattern of complaints.  The business shared the changes that have been made within the business and the current plan and process for continuing to addressing consumer complaints and efforts to eliminate the volume and pattern of complaints..

The business met with the BBB in October 2011 to discuss their continued efforts to eliminate the basic cause of their complaints.  The business shared corporate structure information between Warrantech and AMT Warranty Corporation and the changes made to more effectively handle consumer complaints.

Under the Federal Trade Commission's Disclosure Rule, there are five basic aspects of coverage that a warranty must describe. It is useful to think of these as five questions which a warranty must answer:
1. What does the warranty cover/not cover?
2. What is the period of coverage?
3. What will the warranty company do to correct problems?
4. How can I get warranty service?
5. How will my state's law affect my rights under the warranty?

Industry Tips
**** Warranties & Extended Warranties

Customer Review Rating plus BBB Rating Summary

Warrantech Corporation has received 4.5 out of 5 stars based on 46 Customer Reviews and a BBB Rating of A+.

BBB Customer Review Rating plus BBB Rating Overview
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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.