BBB Accredited Business since

Preferred Warranties Inc

Phone: (800) 548-1121 View Additional Phone Numbers PO Box 278, Orwigsburg, PA 17961 http://www.warrantys.com

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Description

Preferred Warranties offers pre-owned vehicle service contracts through qualified dealers. There are several levels of coverage available in terms ranging from 3-36 months. All plans include 24/7 emergency road service for the terms of the service contract/

A service contract is a promise to perform (or pay for) certain repairs or services. Sometimes called an "extended warranty," a service contract is not a warranty as defined by federal law. A service contract may be arranged at any time and always costs extra; a warranty comes with a new car and is included in the original price.

The separate and additional cost distinguishes a service contract from a warranty.

BBB Accreditation

A BBB Accredited Business since

BBB has determined that Preferred Warranties Inc 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.

Reason for Rating

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

Factors that raised the rating for Preferred Warranties Inc include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 33 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

33 complaints closed with BBB in last 3 years | 11 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 6
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 16
Problems with Product/Service 11
Total Closed Complaints 33

Additional Information

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BBB file opened: August 03, 1995 Business started: 01/29/1992 in PA Business started locally: 01/31/1992 Business incorporated: 01/31/1992 in PA
Type of Entity

Corporation

Business Management
Ms. Kim Krammes, Executive/Legal Assistant Mr. C J Zaruba, Risk Management Ms. Helen Sluzis, Marketing & Public Relations
Contact Information
Principal: Ms. Kim Krammes, Executive/Legal Assistant
Principal: Mr. C J Zaruba, Risk Management
Business Category

Extended Warranty Contract Service Companies Extended Warranty Contract Service Companies Auto Parts & Supplies - Used & Rebuilt Auto Warranty Processing Service

Alternate Business Names
Preferred Warranties, Inc.

Additional Locations

  • PO Box 278

    Orwigsburg, PA 17961

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Types of Complaints Handled by BBB

BBB handles the following types of complaints between businesses and their customers so long as they are not, or have not been, litigated:

  • Advertising or Sales
  • Billing or Collection
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  • Delivery
  • Guarantee or Warranty

We do not handle workplace disputes, discrimination claims or claims about the quality of health or legal services.

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BBB Complaint Process

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Additional Phone Numbers

  • (570) 366-1146(Phone)
  • (800) 334-4841(Phone)
  • (800) 309-8334 (Fax)
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Complaint Detail(s)

2/28/2015 Problems with Product/Service
2/10/2015 Problems with Product/Service
2/9/2015 Problems with Product/Service
2/7/2015 Problems with Product/Service
10/10/2014 Problems with Product/Service
8/30/2014 Guarantee/Warranty Issues
8/5/2014 Guarantee/Warranty Issues | Read Complaint Details
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Additional Notes

Complaint: After bringing my truck to a shop of my choice which the contract states is allowed and the initial appraisal be completed, the warranty company wrote a claim for $2,300.00 for repairs to the transmission. However, this was based on putting a used transmission with similar miles on the transmission on the car that the warranty company would provide. I had the transmission brought to a proper transmission facility to complete proper overhaul on the part and repair this correctly. The transmission was looked at and the damage was more extensive then origninally expected. The casing for the transmission needs to be replaces as well which adds roughly $600 to the repair cost. I have already gotten the shop to reduce their hourly rate from $105.95 an hour to $89 an hour to match the warranty companies rate of labor. But the inital estimate of $2,300 is not a suffecient amount to properly repair this vehicle. I contacted the warranty company after speaking with the shop and explained to them there are more repairs needed to the transmission and it will cost more than they expected. Their response was that they will only authorize the $2,300 in repairs. So now after purchasing this vehicle 1 year ago, only driving 13,000 miles, I still have to cover the additional $1,000 in cost the warranty company that was purchased through the dealer out of pocket. I purchased the warranty plan with the vehicle to avoid this issue down the road. I should have refused myself since the amount spent on the warranty is greater then the amount the are authorizing for the repairs.

Desired Settlement: The desired outcome is to have the authorized amount adjusted from $2,300 to $3,300 to complete the repairs of the vehicle.

Business Response:

Preferred Warranties Inc. (PWI) would like to respond to **. *****’ complaint #********.

 

On 07/03/2014, PWI authorized $2300 for a used transmission for **. *****’ vehicle.  **. ***** was given the option to ship in a used transmission or apply the $2300 to rebuild the transmission.

 

On 07/07/2014, PWI offered a few shops where **. ***** could take the vehicle but he elected to take it to the shop of his choice, ******** ****. The shop estimated $3100 to rebuild the transmission. **. ***** asked if PWI would increase the amount we are applying to the transmission. The claims adjuster explained to **. ***** that the cost to replace the engine would be $2300 and that if wanted to have the transmission rebuilt, he would be responsible for the difference.

 

On 07/10/14, **. ***** opted not to replace the engine and decided to apply the $2300 towards repairing the transmission and paying the difference.  

 

On 07/14/14, **. ***** called stating that his shop ran into complications rebuilding the transmission and asked for more money to rebuild. The adjuster explained to **. ***** that the $2300 was all PWI could authorize for the repair.

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Please refer to the contract, under WHAT IS COVERED BY THIS AGREEMENT:

 

When making repairs, the repair center authorized by PWI will use components of the same type and quality as those removed, which may include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts at the sole discretion of PWI.  The labor required to repair or replace all parts covered under this Agreement will be paid at the industry accepted flat rate as indicated in a current edition of ******** or ******* labor guides, multiplied by the fair market hourly labor rate.

 

The $2300 that PWI approved was calculated on terms of replacing the transmission. PWI was able to find a transmission at $1500 from a reputable supplier with a 30 day warranty with fewer miles than **. *****’ vehicle,  $569.60 for labor according to the shop, $200 for fluids/filters/seals and $75 for diagnostic time. This amount less the $100 deductible is how the $2300 was calculated. **. ***** was given several options to repair his vehicle he choose to rebuild the transmission. $2300 remains the most we are contractually responsible for paying.

 

Should **. ***** have any questions regarding this claim, please do not hesitate to contact our office at ###-###-####.

 

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: ********

I am rejecting this response because:

The shops PWI has offered were presented after half of the work was already processed. Changing shops with still cause myself to incure additional cost. Also in the contract it does not state they can use a used part from a junk yard. It states rebuilt, remanufactured, or recycle. Recycle is another way of putting rebuilt. For a product to be recycled it must be taken from old and processed to create new. Therefore their offer for a used transmission with 3,000 miles less than mine is unacceptable. I refuse to have to deal with this issue again in 2 months when the transmission fails again at the same mileage. PWI is simple temporarily fixing the issue to get me through the warranty until it is out of warranty and tell me it is no longer covered. They are a warranty company and should honor their contract and their commitment. I have now been without my vehicle for what is going on 4 weeks. That is an entire month. I have paid my monthly loan amount for a vehicle I have not been able to drive. I also have been having to pay for a rental vehicle because their contract only covers rental cars for 3 days.

I have gone above and beyond as well as the shops to work within my power to keep this transmission fix within their budget but there is no transmission shop that will be able to honor that low of a budget for this transmission. I have had a vehicle with a bad transmission before and it too was fixed at shops the PWI asked me to take it to. The transmission was rebuilt a total of 9 times while I owned that car and I had to pay for 3 full out of pocket. I am not going through this again. I ensured the transmission was being fixed properly to have a reliable car which is what I paid for and still am paying for. If I wanted this type of hassle I would have bought a cheaper car for cash and not dealt with PWI. They are simply trying to make money by altering their contracts to customers who do not know any better. I am even having them pay the shops directly so they can get the invoices of the actual work being performed and verify the amounts.

If PWI wants to have the ability to use used parts in a vehicle without rebuilding them, they should state that in their contract when customers purchase the warranty. PWI could be having a transmission installed that is used and was damaged from a wreck, or had a failure just as mine did. They don't seem to care. Well this is my vehicle that I am pouring hard earned money into. Without this vehicle I am losing money. They need to just honor their contract and contact the shops I am dealing with and pay for the repairs and get the job completed.


Regards,

***** *****








Business Response:

Preferred Warranties, Inc. (PWI) would like to respond to **. *****’ rejection to our response on 07/18/14.

 

PWI recommended a local repair shop to **. ***** before he took his vehicle to his shop, ******** ****.  PWI then offered **. ***** to take his vehicle to another shop after the transmission was at ********.  Both times **. ***** declined the shops PWI offered.  

 

PWI is not obligated to provide a new or rebuilt transmission per contract terms.

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Please refer to the contract, under WHAT IS COVERED BY THIS AGREEMENT:

 

When making repairs, the repair center authorized by PWI will use components of the same type and quality as those removed, which may include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts at the sole discretion of PWI.  The labor required to repair or replace all parts covered under this Agreement will be paid at the industry accepted flat rate as indicated in a current edition of ******** or ******* labor guides, multiplied by the fair market hourly labor rate.

 

On 07/18/14, PWI paid $2300 via credit card to Level 10, where the transmission is being rebuilt.

 

We apologize for any misunderstanding **. ***** may have regarding coverage however PWI has paid for what is contractually required.

7/1/2014 Guarantee/Warranty Issues
6/8/2014 Guarantee/Warranty Issues
6/2/2014 Advertising/Sales Issues
4/22/2014 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: I purchased the PLUS extended protection plan for my pre-owned vehicle I purchased on 2/7/2014. The vehicle in reference is a 2006 *** ****. While driving the vehicle, the engine overheating light came on, I stopped the vehicle immediately and contacted Preferred Warranties Inc. (PWI) regarding the issue. The repair technician identified the mechanical issue as the engine overheating and failure of the valve adjusters in the engine cylinder head. The cylinder head and valve adjusters are components covered under the PLUS extended protection plan. PWI sent out an inspector to review the vehicle at the repair center and followed up with an email to me stating they would not cover the parts and service due to lack of maintenance which caused oil sludge and the failure of the engine was caused by the oil sludge. *** has provided the maintenance records for the vehicle which shows the car has been serviced according to manufacturer recommendations. This further proves the vehicle has not been neglected from a maintenance standpoint. the vehicle was covered under ***'s maintenance warranty up through 50,000 miles. When I purchased the vehicle the odometer reading was at 59,140 miles. *** manufacturer recommends oil changes every 15,000 miles. My complaint is PWI's reason for not adhering to their PLUS extended service warranty of lack of maintenance is not true and the engine failure is due to the failure of components covered by their warranty. The cause of the failure is due to the engine overheating due to the water pump and thermostat failure which caused damage to the cylinder head (all parts/service covered by PWI) - this was the stated and written cause by the certified ASE repair technician. PWI acknowledged and covers the repair and parts cost of the thermostat and water pump. PWI needs to repair the cylinder head as well.

Desired Settlement: Adhere to the service warranty and repair the vehicle by replacing the complete cylinder head.

Business Response:

Preferred Warranties, Inc. has been in contact with *** ****** and a settlement has been made. *** ****** has signed a release agreement stating the matter has been resolved to her satisfaction.

Consumer Response: [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 

Regards,

**** ******* ******

1/15/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: On or about October 18, 2013, I purchased a used 2006 Dodge Ram 1500 SLT 4X4 Quad Cab from **** ******'s Auto Sales in ******** *****, VA. Provided with my "certified" used vehicle was a 3-month/5,000 mile extended warranty from Preferred. About three (3) weeks after purchase the paperwork/warranty card arrived in the mail and all was well. At approximately 8 AM on Monday, December 2, 2013, I was nearing the end of my 1/2-hour morning commute and the brakes began to drag. After a little less than a mile they had almost seized completely and all four wheels were smoking. I was able to nurse the vehicle to my place of business and began the process of trying to get my vehicle towed, looked at and hopefully repaired. When I contacted Preferred via telephone I was informed that I could take my vehicle to the repair facility of my choice, but that they would only pay up to the "average" labor rate in the area. That was item one (1) which was never explained to me when I was provided the policy. I do not know where they came up with their number ($75/hr), but the first three places I called quoted me labor rates of $125, $113 and $105. So I called Preferred back and they said that in my area (a metropolitan region with HUNDREDS of automobile dealers and repair garages) they had FIVE that were within the 25 mile maximum towing distance from my location. That is item two (2). So I contacted the one nearest to me and arranged for the vehicle to be towed (as a brake issue is a serious safety concern) and around midday the shop contacted me and told me that the brake fluid had been fouled somehow and that the master cylinder had been compromised as a result and would need to be replaced. Preferred denied the warranty claim citing that fluid causing compromised components was not covered. That is the item with which I take the greatest issue. It does not matter how the component became damaged or compromised. The warranty I have does not say "Brake parts covered IF". It says brake parts covered. The "trusted" service center which THEY recommended diagnosed my vehicle and determined that the master cylinder had been compromised. If it was by "bad" fluid, I hardly see how that is my fault, as I have done no work to this vehicle in the short time which I have owned it. After further deliberation and attempted discussion for an amicable resolution with the CSR via telephone I determined that they were not going to satisfy my claim. As I desperately need to have access to my vehicle I am forced, at this time, to pay for the repair services out-of-pocket. The repair facility has approximated this will cost in the neighborhood of $600. The vehicle was taken to *** ******** Auto Services, Inc. located at *** ** ***** ***** in ******** *****. My contract number is *********.

Desired Settlement: 1) More comprehensive explanation of warranty benefits. 2) A review (and update) of their "average" rate calculation for the ******* ***** metropolitan area. 3) Payment/Refund/Reimbursement of my repair cost(s) under warranty.

Business Response:

Preferred Warranties, Inc. (PWI) would like to respond to **. ****** ***’s complaint # ******* on 12/03/2013.

**. *** requests explanation of average labor rate, warranty benefits, and reason why his claim was not covered.

Please refer to the contract in regards to the average labor rate:

WHAT IS COVERED BY THIS AGREEMENT

This Agreement is not an insurance policy and, to be valid, must be purchased at the same time as the vehicle covered by this Agreement. Except as explained below, Administrator agrees to replace or repair parts listed in the Coverage described below if those parts are worn beyond serviceable limits. When making repairs, the repair center authorized by PWI will use components of the same type and quality as those removed, which may include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts at the sole discretion of PWI. The coverage you selected is shown on the front of this Agreement. Coverage applies only to the parts listed under the coverage YOU selected, and to related labor. The labor required to repair or replace all parts covered under this Agreement will be paid at the industry accepted flat rate as indicated in a current edition of Mitchell or AllData labor guides, multiplied by the fair market hourly labor rate.

When **. *** initially called PWI, the clai** adjuster provided five independent repair shops in his area where he could take his vehicle that were within the vehicle service contract’s guidelines of the average labor rate of $75.00.

The repair shop’s diagnosis was that the brake fluid had been contaminated and the seals were swollen. In the vehicle service contract under item # 8 and # 9, contamination is a non-covered item.  

Please refer to the contract for details on non-covered ite**:

THIS SERVICE CONTRACT DOES NOT COVER

8. Benefits for any breakdown caused by contamination, overheating, lack of coolant or lubricants, lack of oil viscosity, sludge or restricted oil flow. Examples include but not limited to: engine and transmission.

9. Benefits for a breakdown when contaminated fluids caused or contributed to the breakdown.

**. *** stated in his complaint “I hardly see how that is my fault, as I have done no work to this vehicle in the short time I have owned it”. PWI does not blame **. *** nor do we know who or when the fluid was contaminated.  However, PWI would like to advise that in the contract under item #10 pre-existing conditions are not covered under the contract’s warranty.

THIS SERVICE CONTRACT DOES NOT COVER

10.  Benefits for a breakdown which existed prior to or was caused by a condition which existed prior to the service contract purchase date.

**. ***’s desired settlement is for a refund. Unfortunately, refunds are only permissible if cancelled within 30 days of purchase of the vehicle service contract and no repair work has been commenced. The contract was purchased 10/16/2013 and a claim had been started on 12/2/2013.  

 

Please refer to the contract:

REFUNDS

This Agreement may be cancelled for any reason within 30 days of Purchase if no repair work has been performed or commenced and the total amount paid for the contract will be refunded by the Selling Dealer to the lienholder (if applicable). To cancel, submit to the Selling Dealer listed above a written request for cancellation. The right to refund is not transferable. Only the Selling Dealer is responsible to refund the Price paid for this Agreement. More than 30 days after purchase, the contract may be cancelled only by the lienholder in the event of repossession or total loss if no repair work has been performed or commenced. Administrator will retain a $35 cancellation fee plus an amount calculated pro rata based on the months or mileage elapsed since Purchase, whichever is greater.

 

Please see the attached copy of **. ***'s Vehicle Service Contract.

We are sorry we are unable to help **. *** at this time and hope this satisfactory explains our obligations.  Should **. *** need any assistance in the future, please do not hesitate to contact us.

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because the vehicle was not modified in any way by me and this condition or component of conditions existed prior to me taking ownership of the vehicle.  You "policy" is insufficient and your response is dishonest and duplicitous.

Further, as a result of additional discoveries beyond the initial one involving the contaminated fluid, the calipers all had seized bleeder valves  which had to be replaced in order to perform the proper repair/replacement of the MC.  These components would have needed replacing if ANYONE had gone in and tried to perform a routine procedure on the system.  I argue that they should also be covered under this warranty.

Your product does nothing it is supposed to do - protect customers buying used vehicles.

You business practices are underhanded and your current policy is despicable.

Regards,

****** ***

Business Response:

Preferred Warranties, Inc. (PWI) would like to respond to **. ****** ***’s rejection to our response on 12/12/2013.

 

**. *** stated that the vehicle was not modified in any way by him and the condition of the vehicle existed prior to his taking ownership of the vehicle.  If **. *** believes that in his opinion this is true, we are unable to assist based on the ter** of the contract in line item #10 in the contract.

 

Please refer to the contract for details on non-covered ite**:

 

THIS SERVICE CONTRACT DOES NOT COVER

 

10.  Benefits for a breakdown which existed prior to or was caused by a condition which existed prior to the service contract purchase date.

 

**. *** also mentioned the condition of the bleeder valves. According to the vehicle service contract, bleeder valves are not listed as a covered item through the Base contract under line item# 10.

 

Please refer to the contract for Base coverage:

 

When BASE Coverage is selected on the front of this Agreement, only the parts listed in 1-11 are covered. Parts not listed are not covered.

 

10 – Master cylinder, calipers, wheel cylinders, & power brake booster (vacuum only).

 

The rest of the brake system is not covered under the contract due to the brake fluid being contaminated.

 

Please refer to the contract for details on non-covered ite**:

 

THIS SERVICE CONTRACT DOES NOT COVER

 

8. Benefits for any breakdown caused by contamination, overheating, lack of coolant or lubricants, lack of oil viscosity, sludge or restricted oil flow. Examples include but not limited to: engine and transmission.

 

9. Benefits for a breakdown when contaminated fluids caused or contributed to the breakdown.

 

We are sorry **. *** feels deceived by the warranty but PWI has and will continue to fully comply with the contractual obligations of this vehicle service contract. 

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because: I have no control over ite** which "preexist" the purchase of the vehicle or policy. Further, you have exhibited a total and complete lack of knowledge of the mechanics of brake components.  Bleeder Valves are INTEGRATED.  They are a component of the caliper and not a unique, individual component.  Without them, the calipers do not work.

I further submit that your company is deliberately and spuriously denying a legitimate claim because I do not believe you have any intention of honouring any of your so-called "warranties".  Your policy is essentially worthless to the average consumer and, as such, is a complete and total fraud.

At this point I grudgingly retract the claim for the Master Cylinder replacement, but demand compensation for the parts and labor for the four calipers.  My requested settlement of this complaint is for $520.34.

I have attached the shop receipt for this work as performed and billed and expect to be reimbursed accordingly.

Regards,

****** ***

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because: It is unacceptable.  Their "terms" are underhanded and shady and their customer service is absolutely deplorable.


Regards,

****** ***

Business Response:

Preferred Warranties, Inc. (PWI) has been in contact with **. ******* ******* from the BBB. We have sent a copy of **. ***’s contract to her via fax with the terms of the contract highlighted where the contract does not cover contamination.

 

We are waiting for response from **. ******* as how to proceed.

 

 

 

1/15/2014 Guarantee/Warranty Issues
12/30/2013 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: In January 2013, my husband and I purchased a truck from **** ****** in ************ NC. At the time we purchased the vehicle, we were offered a warranty with Preferred Warranties. We were offered a 4 year warranty for $2440 and also a 1 year warranty for $1100. I spoke with someone from Preferred Warranties while I was at the dealership purchasing the vehicle and he advised me that at the end of the year I could call into Preferred Warranties and they would extend the warranty. Now, they are claiming that they are unable to do so.

Desired Settlement: I would like for the company to honor what they promised when the product was purchased which is the option for me to extend the warranty period.

Business Response:

Preferred Warranties, Inc. (PWI) would like to respond to the complaint filed by **. ********-******* on 12/11/13.  In this complaint **. ********-******* is requesting an extension of her Vehicle Service Contract purchased on 12/19/12 from **** ****** in ************, NC.

 

PWI has been in contact with **. ********-******* and it has been explained to her that we are unable to extend her warranty.  There is no language in the contract stating that an extension of her warranty is available.  The contract does not require us to do so; therefore it is our option not to renew.

 

Preferred Warranties has fully complied with our contractual responsibilities and has been able to assist **. ********-******* in numerous clai** totaling $9,079.55.  PWI has informed **. ********-******* that her contract expires 12/19/13.

 

I hope I have satisfactorily explained the reason why the renewal is not available.  I have also attached a copy of contract for further review.

10/27/2013 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: I purchased the "extra mile" warranty for $1900 when I bought my truck on 6/11/11. This was presented to me as a "safety belt" for my wallet, and a peace-of-mind for my used vehicle should any unexpected repairs arise. I know I should of done my homework, but when I saw the; rated "A+" by the Better Business Bureau, statement in the customer select coverage handout I was falsely assured it was a good investment. I have noticed through the past years that they have since revised that statement probably due to the previous complaints, and honestly I was happy my truck was doing good and I didnt need them. My father had bought a vehicle and also got this coverage, when he needed repairs and was told "its not covered" I was mad for him but luckily he still had the factory warranty to get his repairs (its nice to know they held up to there side of the agreement). I recently needed some repairs to my truck which included; front impact sensor, passenger side sway pin, serpentine belt and battery. I of course read clearly that the belt and battery are not covered so I gladly had them replaced and paid with no problem, but then there is the sensor and sway pin. I did read through the customer select coverage and saw electrical/ high tech section and proceeded to try and find that sensor for coverage, and did the same for the sway pin in the steering section. Not being to sure if they were covered I had called to find more info, after being told to take it to get looked at I was assured it would most likely be covered but the service center would have to accurately diagnose it and then contact Preferred Warranties to make a claim. I was not able to take the vehicle in to get looked at right away so a couple weeks went by and I had made the time to get the proccess started. I made a call to customer service once again to see what I needed to do, the agent was very nice and when she told me that the dealership that I bought it from was backed up a couple weeks she recommended another. I dropped off my vehicle that afternoon to be worked on first thing the next day. I received a phone call from the service center and was told the issues, which I was aware when I took it, they had told me that nothing was covered. I was mad at the situation and the false assurance of this "safety belt for my wallet", that this extra mile warranty is not good. I feel taken advantage of and now beside the $1900 warranty charge, I am out the money I just paid to get my truck repaired. I do not blame the service company at all, they were great. I blame *** car company for offering this false warranty and Preferred Warranties for the false "A+" BBB rating stated in the handout which is misleading and the false assurance given by customer service of coverage then having the service company be the bearer of bad news of not being covered. I have the feeling that even if it was covered under this warranty they would find some creative reason like not following a precise procedure or some loop hole their lawyers wrote in the policy to get out of honoring a claim.

Desired Settlement: I have coverage until 6/2015, I will not hit the 80,000 mile mark before then I take pride in keeping low mileage. I would like my policy cancelled and a refund of the service contract $1900.00. This is a small amount to probably what it is now with interest since it was added in the financing of the truck.

Business Response:

Preferred Warranties Inc. (PWI) would like to respond to Better Business Bureau Complaint # ******* of ***** * ********.

**. ******** purchased an Extra Mile 48 months/80,000 miles Vehicle Service Contract with Fluids & Filters/Diagnostics (PT Only) (Coverage #5) and Air Conditioner (PT Only)(Coverage #21)  from Preferred Warranties Inc. (PWI) on 06/11/2011 and is seeking to cancel his policy and receive a full refund based on a claim in which the components were non-covered items.  All vehicle service contracts from PWI specifically list all covered components in the contract.

EXTRA MILE COVERAGE

When EXTRA MILE Coverage is selected on the front of this Agreement, only the parts listed in 1-21 are covered. Parts not listed are not covered.  (See attached contract for parts listing)

**. ******** is seeking a full refund.  Listed below are the requirements for a refund.  A refund is possible if the customer has not exceeded the 30 day limit and has not initiated a claim within the 30 day time frame.  **. ******** has had this contract for more than the 30 day limit.

REFUNDS

This Agreement may be cancelled for any reason within 30 days of Purchase if no repair work has been performed or commenced and the total amount paid for the contract will be refunded by the Selling Dealer to the lienholder (if applicable). To cancel, submit to the Selling Dealer listed above a written request for cancellation. The right to refund is not transferable. Only the Selling Dealer is responsible to refund the Price paid for this Agreement. More than 30 days after purchase, the contract may be cancelled only by the lienholder in the event of repossession or total loss if no repair work has been performed or commenced. Administrator will retain a $35 cancellation fee plus an amount calculated pro rata based on the months or mileage elapsed since purchase, whichever is greater.

Unfortunately, we are unable to honor the request of a refund for the above reason/s.  Preferred Warranties, Inc. has fully complied with their legal obligations as outlined in the contract.  

However, we would be more than happy to assist in any repairs listed as covered items in the contract to help improve **. ********’s image of PWI in the future as his contract is still in effect for 48 months/80,000 from date of purchase.

Consumer Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:
   This is a typical response from a company who does not want to own up to its responsibility to take care of its customers. I still and will always believe this is a scam that preys upon peoples reservations of buying used vehicles. The company isnt doing its job and tells me to try and seek a refund from the dealer who just offers it, now the dealer is out the money and the company repsonsible is free and clear, what great customer service.  Its like getting a bad meal at a restaraunt, I am holding responsible the cook who made it not the waiter who took my order. They also state that you can cancel within a short time period if not used, but they offer long term service so in most cases it is well beyond that short term before customers have to unfortunately use their services and find out how rediculous it actually is.  I am NOT just a customer who is trying to find an outlet for my anger because my vehicle needed repairs. It is my vehicle and my responsibility to get it fixed, I have no problem doing it and paying for it. I am seeking this because this company offers that so called piece of mind for your wallet and is supposed to help in making repairs that may arrise.  If I knew they do not actually honor their part for services I purchased from them, I would of been better off just knowing from the purchase of my vehicle that all future repairs were all my responsibility and wouldnt have been scammed and going through this fiasco. They say word of mouth is always the best advertising, after talking to people and reading about this company online, its going to be interesting to watch how they will try and continue to thrive in the future.


Regards,

***** ********








Business Response:

Preferred Warranties Inc. (PWI) would like to respond to **. ***** ********’s rejection.

We would like to review the specific items that are covered under the Extra Mile coverage section of the Vehicle Service Contract that **. ******** had purchased. Please refer the contract for more detailed coverage. (Attached is the copy of the contract)

EXTRA MILE COVERAGE

When EXTRA MILE Coverage is selected on the front of this Agreement, only the parts listed in 1-21 are covered. Parts not listed are not covered.

Powertrain Coverage

When POWERTRAIN Coverage is selected on the front of this Agreement, only the parts listed in 1-4 are covered. Parts not listed are not covered.

1. ENGINE All internal lubricated parts, including pistons, piston rings, crankshaft and main bearings, connecting rods and rod bearings, camshaft and cam bearings, push rods, rocker arms, timing belt and gears or chain, valves, valve springs, valve push rods, lifters and oil pump. The engine block and cylinder heads are covered only if damaged by the failure of a covered internal lubricated part.

2. TRANSMISSION - All internal lubricated parts in transmission case, torque converter, bell housing. The transmission case is covered only if damaged by the failure of an internal lubricated part.

3. DIFFERENTIAL - All internal lubricated parts in the differential housing, differential cover. The differential housing is covered only if damaged by the failure of an internal lubricated part. All internal lubricated components in transfer case. Transfer case is covered only if damaged by the failure of an internal lubricated part.

4. SEALS & GASKETS - Cylinder head gasket and intake manifold gasket when leaking internally. All other seals and gaskets are covered only if required in conjunction with a covered repair.

Base Coverage

When BASE Coverage is selected on the front of this Agreement, only the parts listed in 1-11 are covered. Parts not listed are not covered.

5. FLUIDS & FILTERS/DIAGNOSTICS - Fluids & filters required for covered repairs according to OEM specifications, excluding air conditioning refrigerant.  Reasonable diagnostic charges are covered up to $75.00 if it is determined to be a covered repair.

6. ENGINE - Flywheel and water pump.

7. DRIVE AXLE - All internal lubricated parts in the CV joints, universal joints and wheel bearings.

8. ELECTRICAL - Power door lock actuators (trunk lock excluded), power window motors, power seat motors, cooling fan motor, front and rear windshield wiper motors, starter motor and solenoid, alternator and voltage regulator.

 9. STEERING - Steering gear box and all internal parts, steering rack and pinion unit (short rack).

10. BRAKES - Master cylinder, calipers, wheel cylinders & power brake booster (vacuum only).

11. RENTAL - PWI will reimburse YOU for the rental of a vehicle up to $35.00 a day (no mileage) up to a maximum of three days. This rental coverage will be paid by PWI if the actual repair will take more than two business days only when the vehicle is in a repair center and disabled as a result of the failure of a covered item.

Plus Coverage

When PLUS Coverage is selected on the front of this Agreement, only the parts listed in 1-19 are covered. Parts not listed are not covered.

12. AIR CONDITIONER - Evaporator, condenser, compressor, compressor seals, compressor clutch, clutch bearing, receiver/drier, idler pulley, accumulator and expansion valve. (Conversions from R12 to 134A, evacuation and recharge of A/C system are not covered.)

13. ENGINE - Pressure regulator, harmonic balancer and bolt, valve covers, timing cover, oil pan, vacuum pump and engine mounts.

14. TURBO (Supercharger) - Turbo charger housing, all internal parts and waste gate. Supercharger housing, vanes and bearings.

15. TRANSMISSION - Vacuum modulator, transmission mounts and transmission pan.

16. DRIVE AXLE - Axle shafts, differential cover, yokes, double offset joints, drive shaft center bearings, propeller shafts and 4WD locking hub. The drive axle housing is covered only if damaged by the failure of an internal lubricated part.

17. ELECTRICAL/HIGH-TECH - Distributor, front and rear windshield washer pumps, convertible top power motor, keyless entry transmitter and receiver, transmission input/output speed sensors and ignition management controls. Including, but not limited to, the following components: ignition control module; AIT (air intake temperature sensor); TPS (throttle position sensor); CAM or crank sensor; knock sensors; ECM or PCM (electronic or powertrain control modules); O2 (oxygen), MAP (manifold absolute pressure) and MAF (mass air flow) sensors; CPS (crank position sensor) and; coil pack(s).

18. STEERING - Manual and power steering gear housing and all internal lubricated parts, steering column, power steering pump, main and intermediate steering shafts and couplings, electric power steering motor.

19. FUEL DELIVERY SYSTEM - Gas/diesel fuel pump, gas/diesel fuel injectors.

20. RENTAL - PWI will reimburse YOU for the rental of a vehicle up to $35.00 a day (no mileage) up to a maximum of five days. This rental coverage will be paid by PWI if the actual repair will take more than two business days only when the vehicle is in a repair center and disabled as a result of the failure of a covered item.

Extra Mile 

When EXTRA MILE Coverage is selected on the front of this Agreement, only the parts listed in 1-21 are covered. Parts not listed are not covered.

21. ABS - Electronic control processor, wheel speed sensors, hydraulic pump/motor assembly, pressure modulator valve/isolation dump valve/isolation dump valve, accumulator, seals and gaskets.

As you can see, this particular policy offers an extended array of coverage.  Unfortunately the mechanical issues **. ******** had experienced are not covered items in the contract.

Though we cannot confirm any relation to **. ********’s problem, we have located a General Motors campaign with an airbag related issue.  **. ******** may go to any GMC dealer and ask for a detailed explanation on this matter. 

PWI hopes **. ********’s vehicle runs smoothly for many miles, however, if he experiences any mechanical breakdown, he can reach the Claims Department @ ###-###-#### and we will be happy to assist him with any covered components as stated in the Vehicle Service Contract.

9/29/2013 Guarantee/Warranty Issues | Read Complaint Details
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Additional Notes

Complaint: On July 3 2013 I purchased a used car, 2007 Mitsubishi Endeavor from a used car dealership ***** **** . At the time of purchase I also purchased a Warranty from Preferred Warranties, Inc. for $1500.00. On Aug 27 the car began to hesitate while making right turns only. I contacted the warranty co Aug 27 at 5:15 pm. and they said to contact my garage and have them contact the warranty co prior to any repairs. On Aug 30 the vehicle began severely hesitating while driving. I took it immediately to the mechanic. He reported it was a transmission failure. The Warranty co was notified on Tues Sept 3. The warranty company contacted me stating that I would have to authorize my mechanic to open the transmission to see if the failure was due to an internal lubricated part failure. they informed me that if the failure was caused by a seal failure it would not be covered. On Sept 4. My mechanic contacted me and said it was definitely not a seal failure and was an internal failure. The warranty co. sent an inspector to look at the transmission on Friday Sept 6 2013. The final report stated there was a rock hard converter seal and a grove worn into the convertor hub which appears to be source of the leak and all clutches are burnt. The cause of failure was the failure of the convertor seal due to time and miles resulting in rapid fluid loss and internal trans damage. I immediately contacted my mechanic who again stood by his statement that it was not a seal failure. I again spoke with ***** from The warranty co who said he would contact my mechanic first thing Monday morning, Monday, Sept. 9. However what happened was ***** called me at 10:30 Monday morning and said his supervisor reviewed the report and states it is not covered and they will not be contacting my mechanic. I had them fax me the report which I then forwarded to my mechanic. The Warranty co is stating this is a non covered item since it was a seal failure.... I had the car for less than 2 months when the failure occurred. My mechanic said it was not due to any fault of my own. The cost of this repair will be approx. $2000.00. I then contacted the dealer ***** ****, **** ********* ******* ************* PA ****** ************. Who said they would contact the Warranty company because they believe it was mishandled by Preferred Warranties, Inc.

Desired Settlement: I would like for this repair to be covered. My mechanic has stated this is not a failure that was caused by anything I could have done or prevented. I had possession of this vehicle for less than 60 days and drove less than 3000 miles.

Business Response:

Preferred Warranties Inc. (PWI) would like to respond to Better Business Bureau Complaint #******* of Kelly Ann Brady.

In this complaint, the customer is asking PWI to cover the cost of the repair for the 2007 Mitsubishi Endeavor.

An independent inspection was completed on September 6, 2013 and the inspector said the vehicle came in 5.5 quarts low on fluid. The inspector stated the front pump/torque converter seal was hard and brittle, and had worn a groove into the converter neck. The undercarriage of the vehicle was soaked with transmission fluid all the way back to the rear bumper. The internal clutches are burnt due to the run-low condition.

The determined cause of failure was the pump seal which caused a rapid loss of fluid causing sub-damage to the internal works of the transmission. Ultimately, the seal was the root cause of failure, causing all the fluid to leak out.

Please refer to the contract:

Please read carefully. See the statement of what is not covered below.

4. SEALS AND GASKETS - Cylinder head gasket and intake manifold gasket when leaking internally. All other seals and gaskets are covered only if required in conjunction with a covered repair.

Additionally lack of lubrication is not a covered item.

The contract states:

THIS SERVICE CONTRACT DOES NOT COVER

8. Benefits for any breakdown caused by contamination, overheating, lack of coolant or lubricants, lack of oil viscosity, sludge or restricted oil flow. Examples include but not limited to: engine and transmission.

PWI has been in contact with the customer’s selling dealer and it is our understanding that the dealer has agreed to partner with the customer and assist with a portion of the repair.  

7/16/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: A warranty was purchased on 3-23-2012 through ****** ******* **** in *******, NC for the amount of $2,245. The warranty contract is J03502760. The warranty was not used and cancelled on 6-7-13. A check in the amount of $1,027 was sent to ****'s. This amount was minus a $35 cancellation fee and the prorated amount for the months of warranty. The Preferred Warranty representatives ****** and **** stated that the remaining amount of $1,218 would be refunded from the dealership. This action was in breach of my warranty contract. All refund amounts are required to be sent to the Lien Holder.

Desired Settlement: Send $1,027 to the Lien Holder. Send additional amount of refund to the Lien Holder. $2,245 prorated for 5 years minus $35 does not equal $1,027. The Lien Holder is ****** ******* ****** ***** ** *** *** *** ******* ** ***** Loan# **************

Business Response:

This is in response to the complaint filed by **. & **s. ******* received by Preferred Warranties, Inc. (PWI) on 06/21/2013. **. ******** ******* purchased a 36 month/45,000 mile contract on 3/23/2012 for $2245.00 which he terminated 06/04/2013.

In regards to refunds, the contract states under “Special State Disclosures”:

North Carolina: The section called “REFUNDS” is deleted and replaced by the following: YOU may return the Agreement at any time after purchase and the Agreement will be void. If YOU return the Agreement, PWI shall refund to YOU or credit to YOUR account a pro rata refund less any claims paid on the Agreement and an administrative fee not to exceed ten (10) percent of the amount of the pro rata refund. In the event of a refund, the lienholder if any will be named on the refund check as its interests appear.

A stop payment was placed on the check in the amount of $1027.00 that was sent to the dealer. A new check in the amount of $1312.00 has been sent to the lienholder, ****** ******* ****** *****. This refund is pro-rated based on the time the contract was used which was 438 days.  The refund percentage is 60.00 %. 60.00% of $2245.00 is $1347.00 minus the $35.00 cancelation fee which totals $1312.00.

By sending this refund check, our company will consider the warranty of ******** ******* (2002 Mercedes-benz SLK 2320) VIN# ***************** officially canceled.

Consumer Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:

Why wasn't the refund handled as intended per this section of the contract?

Why was a refund check sent to the attention of ****** ******* **** in the amount of $1,027?

Why did the refund amount increase from $1,027 to the correct amount of $1,312 owed when the Better Business Bureau was involved?

How was 60% calculated for a 3 year warranty (33% per year would equal 100% payment of the warranty)?

When will the correct refund check be sent to ****** ******* ****** *****?

 

This issue needs to be corrected immediately.  This was a fraudulent practice on the behalf of Preferred Warranties and ****** ******* ****.  This is also a breach of an existing contract.  Additional compensation or refund should be awarded for this error and incorrect information that was communicated to me as a customer. 

 

Regards,

******** & ****** *******








Business Response:

This response is in regards to complaint # ******* filed by ******** and ****** *******. **. and ***. ******* questioned why the refund check was sent to the selling dealer versus the lienholder as stated in the contract.  The contract was purchased by the customer through the selling dealer; therefore we are then paid for the contract by the selling dealer.   If a refund is requested, PWI processes the refund through the selling dealer to which the selling dealer would add their portion of any retail markup if applicable.  The dealer then ultimately sends the final refund check to the lienholder.  In this case the dealer did not cooperate with PWI with their responsibility of the refund so PWI, out of good faith, refunded the dealer’s amount to the customer.  A stop payment was then placed on the check for $1027.00 that was sent to the selling dealer.  A new check was reissued in the amount of $1312.00 and sent to the lienholder, ****** ******* ****** *****, on June 21, 2013.

Another question **. and ***. ******* asked was how the 60% was calculated.  The 60% is calculated by the date the contract was bought, which was March 23, 2012.  The contract had been in use for 438 days for which the contract was terminated on June 4, 2013.  The contract was for 3 years or 1068 days. 630 unused days of 1068 days is 60%.

We apologize for the length of time it took for the check to be received but PWI feels that we fulfilled our contractual obligations to this customer.

5/12/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: The engine on my truck blew. It had 116,000 miles on it. The waranty company said they found an engine with 50,000 miles on it, which I later learned actually had 103,000 miles on it. The new engine had problems from day one. Some of which they were not willing to cover. The asociate I had spoken to denies the fact he told me it had only 50,000 miles on it. If he said it had 103,000, I would have said no way and found a better engine. I fully understand their policy of as good or better parts. When I have to dish out $600 of my own money, I want the best possible parts and service. Instead, I was decieved by an adjuster named ***** ******. He claimed his supervisor would give me a call about the matter. It has been 2 weeks and still no call.

Desired Settlement: For being defrauded and later blown off, I would like a brand new engine installed with all cost covered by preferred warranties inc.

Business Response:

In response to *** *******’s complaint #******* filed on 03/26/2013 and his desired settlement for replacement of a brand new engine, I have outlined Preferred Warranties, Inc. (PWI) contract policy for covered/non-covered components.

WHAT IS COVERED BY THIS AGREEMENT

This Agreement is not an insurance policy and, to be valid, must be purchased at the same time as the vehicle covered by this Agreement. Except as explained below, Administrator agrees to replace or repair parts listed in the Coverage described below if those parts are worn beyond serviceable limits. When making repairs, the repair center authorized by PWI will use components of the same type and quality as those removed, which may include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts.

CLAIM HISTORY

On 02/20/2013 PWI received call from **** at ****** *****, he reported that **********’s truck was towed to his shop and the customer’s complaint was a check engine light was on and the engine was running horribly.

On 2/21/13 ****** ***** reported there was valve and cylinder damage and that the engine needed to be replaced.

On 02/22/2013 *** ******* was made aware that his claim was covered and that PWI  had located a recycled engine with 103,000 miles on it. He was informed of the policies and procedures and was given the choice of a recycled engine vs. a remanufactured engine and that he had the option to pay the cost differences between the two for an upgraded part.

The customer asked for the VIN# from the recycled engine, PWI offered to ship to the shop for installation. ********** wanted to call himself to see if there were any options. That same day, *** ******* called back and said that he had someone run the VIN# and that person told him that the engine PWI located had 50,000 miles on it. Chris advised the customer again, that the motor PWI had located through our supplier had 103,000 miles on it. The customer insisted that his research indicated the recycled engine PWI located had 50,000 miles on it. Chris explained that 50,000 was not the mileage, that the engine we offered to the customer had 103,000 miles on it.  *** ******* stated he wanted to go with our shipped-in motor and it was ordered that same day.

At the time *** ******* was having problems with the original engine, the vehicle mileage was  116,793.  The engine that replaced it had 103,000 miles which is considered better quality than the original engine.

On 03/13/2013 the customer called back and stated that “after the engine was replaced there was a noise coming from the engine and ****** ***** never refilled his A/C system.” As per the contract, the A/C freon evacuation and recharge of the system are not part of the contract coverage. Again the customer claimed the adjuster told him there was 50,000 miles on the recycled engine.  Chris referred back to his notes from 02/22/2013 when he explained to the customer that the engine had 103,000 miles on it. Chris then advised *** *******, we would open another claim for him for the noise complaint and that he should return his vehicle to the repair facility for diagnosis, but the customer verbally declined.  

Chris later called the customer and warned *** ******* that his contract was to expire as of midnight the next day and the shop must call PWI.

On 03/18/2013 a call was received from ****** from ********** stating that the vehicle was there on 03/14/2013 and that the alternator bearings were failed and A/C compressor was rattling because of broken mounting.

The mechanical failure we were able to help with was the alternator replacement.  It was authorized in the amount of $320.88.

Preferred Warranties has complied by the terms of the contract and we have done everything possible to accommodate the customer and hope you find in our favor.

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:
My statements can be proven by listening to the conversation between myself and the adjuster on 3/22.  There should be no problem for the waranty company to provide this as the adjuster claimed to me that ALL calls are recorded.  Obviously the person advocating for PWC has not listened to the conversation him/her-self.

Regards,

****** *******








Business Response:

Preferred Warranties Inc. (PWI) would like to respond to *** *******’s rejection regarding complaint # *******. We are unable to provide a recording of *** ********s call. Phone calls at PWI are not recorded, however all calls are documented when a customer calls in for questions, concerns, or claims.  

According to *** *******’s claim notes, the customer was informed that the recycled engine had 103,000 miles. He was offered the option of a recycled engine vs. a remanufactured engine but would be responsible for the price difference for a remanufactured engine.  *** ******* requested the VIN# for the recycled engine and we provided the VIN#.  Based on his research, *** ******* indicated to PWI that the engine had 50,000 miles. *** ******* was again advised by PWI that there were 103,000 miles on the engine but the customer still opted for the recycled engine. PWI does not research VIN #’s on recycled components, we rely solely on the supplier’s information.   

On 03/13/13, *** ******* called stating the vehicle was making noises and that the shop never refilled his air conditioning fluid.  However, evacuation and recharge are not covered as stated in the Vehicle Service Contract:

20. Air Conditioner Option—(If YOU purchased Powertrain or Base Coverage, the following optional coverage is in effect ONLY if YOU selected the Air Conditioner Option on the front of this Agreement.)Evaporator, condenser, compressor, compressor seals, compressor clutch, clutch bearing, receiver/drier, idler pulley, accumulator and expansion valve. (Conversions from R12 to 134A, evacuation and recharge of A/C system are not covered.)  ABS Option—(Not available with Powertrain Coverage. If YOU purchased Base or Plus Coverage, the following optional coverage is in effect ONL.Y.

On 03/18/13 the customer complained of a rattle in the engine compartment and Robert from Fitzgerald Auto determined that the alternator had bearing failure.  PWI paid for the alternator to be replaced in the amount of $320.88 on 03/29/13.

PWI has acted in compliance with all obligations listed in the contract purchased by the customer.

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

 Complaint: *******

I am rejecting this response because:
  This is not a case of my word against someone elses' who has notes from a phone call.  I have a credible witness who heard the entire conversation.  The attempt to resolve this so called dispute was just a courtesy.  If not resolved by means of the BBB,  PWI will be served lawsuit paperwork.  I will be suing for the cost of a new engine installed which is around $6000x3 for punitive damages, plus cost I have already paid, time off work, and lawyer fees.  If PWI wants to suport a liar like ***** ******, thats fine.  The fact that I never recieved a phone call from his supervisor tells me that he already knows the truth and is thinking this will just go away.  But like I said before, I don't like being lied to. As for the engine being of the same quality, how is it the same if it already needs repairs.  The fact that PWI does not check the vin on recycled components and relies solely on supplier information says a lot about their customer service commitment. It says, "we don't care enough to do that.  Which to me is realy stupid because YOU'RE PAYING FOR IT."  In any case, it's not what the PWI supplier told them, it's what PWI told me, which was 50k miles.

Regards,

****** *******







Business Response:

In response to *** *******’s rejection and desired settlement of a brand new engine installed with all cost covered by Preferred Warranties Inc. (PWI), I have outlined PWI’s contract policy for covered/non-covered parts.

WHAT IS COVERED BY THIS AGREEMENT

This Agreement is not an insurance policy and, to be valid, must be purchased at the same time as the vehicle covered by this Agreement. Except as explained below, Administrator agrees to replace or repair parts listed in the Coverage described below if those parts are worn beyond serviceable limits. When making repairs, the repair center authorized by PWI will use components of the same type and quality as those removed, which may include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts. The coverage you selected is shown on the front of this Agreement. Coverage applies only to the parts listed under the coverage YOU selected, and to related labor.

According to the claim notes for *** *******, the customer was informed that the recycled engine had 103,000 miles. The recycled engine was of the same type and quality as the engine that was removed, which had 116,497 miles. *** ******* indicated, based on his research, that the recycled engine had 50,000 miles. PWI does not research VIN#’s on recycled components as we rely solely on the supplier’s information, which was 103,000 miles.

We are sorry for any misunderstanding you may have had regarding the recycled engine. As stated in the Vehicle Service Contract, please see the arbitration clause for the option to seek arbitration.

DISPUTES ABOUT THIS AGREEMENT

YOU agree that any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association (“AAA”). Matters involving claims of less than $10,000 shall be settled pursuant to the AAA’s Arbitration Rules for the Resolution of Consumer-Related Disputes and matters involving damages of $10,000 or more shall be settled by a single arbitrator pursuant to the AAA’s Commercial Arbitration Rules. For a copy of procedures to ?? le a claim or other information regarding arbitration, contact AAA, 335 Madison Ave., NY, NY, 10017 or online at www.adr.org. All disputes regarding this Agreement shall be subject to the laws of the Commonwealth of Pennsylvania without regard to choice of laws.

We feel that PWI has honored its contractual obligations and hope this satisfactory explains our position as outlined in the Vehicle Service Contract purchased by the ****** ********

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