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Vehicle services inc who sells consumer direct warranty services called me and sent me postcards a dozen times because my original extended warranty was expiring. Represented themselves as working with the dealerships, sold me a warranty that is in fact useless because they will not honor what they claim they cover. Everything is "worn" not broken. My waterpump leaks and it is "worn" regardless of the age. The dealership said that they never cover anything. When called for authorization, they always turn down the claim stating it is worn not broken. When I purchased this warranty I was told that if I did not use it I would get my full refund ($3500) but I may be only able to get $1500 if certain conditions are met.
Their warranty booklet does not differentiate between worn and broken.
The complaint has been investigated and resolved to the customer’s satisfaction.
I had a similar problem too, I bought their warranty service a year ago. I was hoping that my car would not have problems for the next 5 to 10 years. Sadly one year later the transmission takes a dump. I take it to the mechanic and the 3rd gear drum is broken, they fax in the paperwork...and the request is DEINED! Now im furious trying to figure why, they said its not covered in the manual. Now im out 4000 dollars because of the rental and repair. Only to find out a week later the ECU of the car is damaged out another 1000 dollars. I want my money back because Im throwing money down a well of no promise.
You can get your money back (all of it). See our "Cancel Warranty" section. If you have any questions email us, our email address can be found in our "Contact" section and the top right hand corner of the site.
Warranty Investigation Bureau,
www.WarrantyBureau.com
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