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Took my 2003 dodge truck that had this warranty services to my local dodge dealer to have the noise in the rear end check out and they told me that the penning bearrinng was out so called the C.D.W.S and they turn me down because the services department did not state that the parts was not broken the bearring was turn out so because it was not stated broken it was not cover but the part was warnout but it cost me out of my pockett 801.00 if you get acall from them rember that it must be broken to bo under the warranty not warn out
The complaint has been investigated and resolved to the customer’s satisfaction.
Department of Insurance Slams Consumer Direct Warranty Services for Unlicensed Sale of Insurance
Dilbert taps into consumer frustration with the comic strip posted below. Call it wry humor. But the California Department of Insurance doesn't think consumer fraud is funny. Whether they are referred to as "service contracts, " "extended warranties" or "mechanical breakdown insurance, " vehicle repair agreements are a big profit center for new and used car dealers. Telemarketers or internet schemes may tout them as well. Often such contracts are unnecessary. Even illusory. Some of these products are legal, but many are not. In the midst of a slick sales pitch, almost no one reads the prolix printed warranty form. That is a mistake Dilbert's "confusopoly consultant" wants you to make. Now the Department of Insurance is clamping down.
For many years, car dealers have claimed that these after-market products do not qualify as insurance and they do not have to be licensed to sell them. That may change. On June 17, 2010, the California Department of Insurance issued a Cease and Desist order against Consumer Direct Warranty Services and related entities. You can read the Department's full press release here.
Some dealer service contracts fall within an exception to the insurance rules. However, in order to exploit that loophole, car dealers must follow certain procedures, have back-up insurance, provide cancellation rights and comply with other regulations.
"If you want to sell insurance in California, you must obtain a license, have adequate financial reserves and you must not deceive consumers, " said Commissioner Poizner. "In order to protect California consumers, there are specific requirements for insurance companies seeking to do business in California. If companies do not abide by these requirements, they will not be permitted to sell insurance in our state."
The Insurance commissioner's website goes a step further to promote consumer protection. Check out its "Guide to Auto Service Contracts and Agreements" here. If you have purchased a service contract or extended warranty that does not comply with these rules, contact us even before your car breaks down.
All scam victims
Please contact California Department of Insurance
David Richter
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They are recording this case now