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Attempted Scam. Three days ago another representative of Enterprise Financial Group, Inc (EFG) called me (I'm on the don't call list) with their usual extended warranty scam. He tried to sell me what he claimed was an extended warranty that was every bit as good as the factory warranty for my ten year old vehicle. He wouldn't show it to me and demanded that I pay him $395 down on a total price of $2, 975 after which he said he would send a package in the mail. He said I'm totally protected because if I don't like it, I can just call him to cancel within 30 days for full refund. I get 5 or 6 calls per week from extended warranty scammers such as EFG or their partners in crime. Their contracts are worthless and when you cancel per their procedure, they refuse to give a refund. I ordered one once to look at it and had to file a dispute through y credit card company to recover my money. Don't ever send these scammers money.
I've talked to several service managers at large dealerships and they say it's very rare that EFG authorizes any repairs or services under what EFG misrepresents as "extended warranties." They say customers repair claims are nearly always denied by EFG. EFG falsely claims their contracts are just like the manufacturers' warranties. Consumers are given the hard sell by EFG and their partners in crime (who make huge profits selling these worthless contracts), promising that nearly everything but a few maintenance items are covered. EFG is the kingpin and provides the sales scripts for their partners to use in the hard sell and deception.
At first glance, EFG contracts seem to provide some coverage. But when one carefully reads the fine print, you find that EFG's contracts are packed with specific exclusions and very little if anything is actually covered. To eliminate everything not specifically excluded, EFG's broad pre-existing condition clauses and normal wear clauses are all EFG needs to deny any claim. If a part broke, it must have a had a design or manufacturing defect. Or, it just wore out. By the time consumers realize the contracts are worthless, they may have paid thousands of dollars to EFG.
For Alex Drasil, EFG. None of the complaints about EFG on this board were about how fast you pay invoices to repair shops for the tiny percentage of total claims EFG approves. The issue is that EFG approve so few claims that your contracts are virtually worthless (other than for lining your pockets). Also at issue is that EFGs sells its worthless contracts through deceptive marketing, not to mention the millions of illegal robocalls it sponsors. Last but not least is that EFG refuses to provide refunds required by law and promised by your marketers. Mr. Drasil, your talk of having ethical business practices is ridiculous in view of EFG's blatant scammery.
By law most states require that the likes of EFG provide a refund if customers cancel these worthless "extended warranty" contracts within 30 days. Anyone who buys one and carefully reads it and researches how unhappy people are after trying to get EFG to pay a claim will want to cancel it. EFG sales people and their partners con people into buying these contracts over the phone site unseen by promising that they can get their money back immediately if they cancel within 30 days. But reading all the complaints and legal actions, it's apparent that EFG has no intention of giving refunds.
Here are a few examples of actions being taken against EFG and their scams: "Minnesota Attorney General Lori Swanson today ( Sept 24, 2014) filed a lawsuit against Enterprise Financial Group, Inc. (“EFG”)—a Texas company that issues extended auto warranties—for its delays in issuing refunds owed to Minnesota consumers and its failure to follow Minnesota law.." See http://www.ag.state.mn.us/Consumer/PressRelease/20140923AutoWarranty2.asp
In October 2014, EFG lost its Better Business Bureau accreditation. On 10/07/2014 the accreditation was suspended due to recent government action involving the business's customer relations which indicates a significant failure of the business to meet standards of conduct expected of a BBB Accredited Businesses. - See more at: http://www.bbb.org/dallas/business-reviews/auto-warranty-processing-service/enterprise-financial-group-in-irving-tx-43000255#sthash.QlpWpJiD.dpuf
Mr. Pappanastos of EFG statement that they don't make outbound sales calls is false and misleading. Yesterday, even though I'm on the don't call list and have asked EFG companies and partners numerous times to stop calling me, I received a call from Right Shield Vehicle Protection, 261 Commercial St, Pomona, CA 91768. The caller said they were an EFG company and attempted to sell me an EFG contract named the TechChoice which I later found posted on Right Shield's website http://www.rightshieldvp.com EFG directs its companies and partners who they share revenue with to make these illegal calls. That EFG outsources the making of these illegal calls to people on the do not call register and people who have asked them to stop calling them does not relieve EFG of their culpability. These EFG directed calls though its companies, partners, and subcontractors are violations of the Telephone Consumers Protection Act. Despite repeated request to EFG and their agents to stop calling me, I get several "extended warranty" scam calls from them a week and have gotten them for years. Whether the sales calls are from EFG companies or their revenue sharing partners that sell their contracts, the callers' sales scripts are virtually identical which shows how tightly EFG controls the telemarketing of their worthless "extended warranty" contracts.
EFG's John Pappanastos' and Alex Drasil's claim that EFG does not make outbound calls to sell vehicle service contracts and doesn't endorse that practice by its partners is false. I have received numerous unwanted calls both from individuals who say they represent EFG and from their partner companies. The callers typically ask me if I still own a particular vehicle and transfer me to an agent of EFG or its partners who commenced the sales pitch.
Regarding federal and state laws on Do Not Call Registries, it makes no difference whether the calls to numbers on them are made directly within EFG and their partner companies or whether EFG had them conducted by third party call centers on their behalf before transferring the calls to EFG or its partners. They are all still illegal calls attributed to EFG under the law.
When I checked caller ID number these callers transmitted, I found that the call centers EFG and its partners use to initiate these calls to me on their behalf hid their real telephone numbers by spoofing other numbers such as an out of service or invalid number. Their elaborate effort to hide their real number by transmitting false caller ID information to prevent identification shows that they know their calls are illegal.
It's preposterous for EFG officials to suggest that they are not fully aware and responsible for the plague of illegal harassing calls to me and other consumers by EFG and its partners trying to sell its worthless "extended warranties" whether they make the calls themselves or have third parties make them on their behalf. Hopefully, the US Attorney General will prosecute EFG for violating the law. I also hope some enterprising law firms will file lawsuits on behalf of the consumers that EFG's call centers, whether internal or third party, have illegally called on their behalf.
I am still waiting for Mr. Pappanastos to make good on his promise in his October 30, 2014, post "to personally address each and every one of your comments in this posting." So far, the only thing he's done is deny that his company makes outbound sales calls to consumers.
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![Enterprise Financial Group [EFG]](/images/business/48-48/131863/enterprise-financial-group-efg-companies.xx%26oh%3Decc263d7fab796af458d35c4ad77a2c7%26oe%3D5db403fd){kind=small}
I’m John Pappanastos, President and CEO of EFG Companies. EFG has served consumers for close to 40 years and we take customer service very seriously. As a matter of fact, we were just designated as a Center of Excellence by Benchmark Portal -- only the top 10% of companies benchmarked receive this ranking. I would like to personally address each and every one of your comments in this posting, starting with the fact that EFG does not make any outbound calls to consumers in an attempt to sell vehicle service contracts. I also want to provide you some insight into our company’s positive record of paying claims. Please email your phone number to me at jpappanastos@efgusa.com so that we might arrange a time to talk. Though it doesn't appear that you have either a contract or a claim with us, I’m happy to talk with you about our company and how we serve our customers. Please reach out to me at your earliest convenience.
Well now...one usually does not see a reply such as this unless it can be backed up. This reply makes a difference.
Mr. John Pappanastos, respect sir.
-Demetrios
Again, I am making myself available to you for a conversation so that I can understand the calls you are receiving as they are not sanctioned, approved nor endorsed by EFG. I will be happy to share with you how swiftly and immediately we deal with any issues wherein employees of authorized sellers do not follow state and federal guidelines and regulations. I am interested in any specific detail you can give me as to the area codes from which the calls are coming, any name (first or last) that the person calling has given you, and your actual phone number to which the calls are coming so we may audit our authorized sellers’ databases to find out if it exists in any of them. Please email me at jpappanastos@efgusa.com so that we may address your situation.
Just today I received a phone call from a number [protected] and the lady on the phone told me she was representing Enterprise Financial Group. I was also told that I would have to make a decision during the phone call, that the company does not accept call backs and if I say no, they will close my file and my car will be left out without a warranty. I don't know about most people, maybe that's ok for them to be bullied into paying hundreds of dollars and signing themselves up for a payment plan up front for something they have not seen, could not verify and discuss with their household members, but I just can't do that. If I'm signing up for something this serious I am not going to do it over the phone without reading the fine print and checking all the paperwork. When I explained that to the agent she seemed to be displeased and said that I will have 30 days for that and if there's something I don't like I can cancel. Maybe. I've heard numerous stories when it's easier to walk to China backwards than to get a refund for a "no questions asked trial period". And even though I can always file a complaint with my credit card company I have better things to do in life. So if EFG wants my money, they should allow their potential customers to be able to read through what is being offered, assess the risk and only then decide instead of scaring them into buying over the phone.
Chesla petterson
[protected] just called me in after questions ask by me I got the name and enterprise finacial group. Which lead me here Mr. Like I told the guy I do large construction for a living I risk my life everyday for my money.
Hello, my name is Alex Drasil and I’m the director of claims here at Enterprise Financial Group. We have been investigating the phone call you received since you left this report and I wanted to contact you directly to thank you for the feedback. EFG does not make outbound calls to customers to sell vehicle service contracts, we do not endorse this behavior by our partners, and we take direct action if it does happen. If you could contact me directly so that I can get more information from you about the phone call, then it will give us what we need to investigate this immediately. My number is [protected], Ext 8337. Thank you!
Once again, the calls you are receiving are not initiated, sanctioned, approved nor endorsed by EFG. This now is the fourth time that we have responded in an attempt to understand the details of this situation and ask the questions we need in order to help you. As EFG’s President and CEO, I have made myself directly available to you because I consider you, and all aspects of EFG’s customer service, important. This is evidenced by the customer service awards that we have achieved this year alone. I am now providing you with my personal cell phone number in another attempt to help you: [protected]. If you do not contact me, I have to assume at this point that you are not interested in EFG engaging with you to help resolve your issue. Thank you for your time, and I’m sorry that you had a frustrating experience regardless of the fact that EFG was not involved.
Gosh this consumer guy sure is thick. And gullible. Definitely not the sharpest tool available in the shed. Well DUH! The telemarketers are saying they are representing EFG so that must be true, right? Wrong sir, these telemarketers are saying they are EFG because you probably asked them harshly "what company are you with? " So knowing that if they say the name of their little fly by night operation with a terrible BBB rating the chances of them selling a contract is much lower than if they say EFG, which is a reputable company in the industry, despite whatever it is that you say. I only know this because I had to get a second job to make ends meet a few years back, and I ended up screening calls for a vehicle service contract company that sold EFG policies along with other company's policies as well, and some of the people working there would represent themselves as the administrator because its actually aname that a customer can quickly look up and verify is real. Now they were definitely not supposed to be doing that, and would often get into trouble with the management for doing that.
I am very upset at the deceptive practices from EFG. As with any other customer who purchases an extended warranty/contract with anyone they make their decision based on what is promised in the list of covered items… Attached is a copy of the inside(s) of your pamphlet that displays ALL parts/components covered under all levels of coverage and I chose the Platinum level in order to be protected for as much of the car as possible. Your warranty/contract DOES NOT state anywhere in it / on it that it includes the use from a previous owner as a part that I may be punished for if any of those parts go out and will be refused coverage. I purchased this warranty to be covered from my point of taking ownership until my warranty/contract term ends. As with time ANY vehicle will have parts to go out because the minute the wheels turn on a car that’s normal for any vehicle; however, a Customer is offered and given the option to purchase an extended warranty/contract to cover them for a certain number of miles and/or number of years so that if ANY of this happens, they will be covered for the repair less any deductible.
It is my unsatisfied experience with EFG that you pick and choose which repairs you are willing to cover and which of those you choose to deny. I have had past repairs covered under the warranty that you paid and those too from normal wear and tear but from the previous owner. I have barely had the vehicle in my possession 2 years and it is barely driven so the repairs that have come to be needed is NOT from my use or neglect. They are simply failures that happened at an in-opportuned time and that is the reason I or anyone purchase an extended warranty/contract to be covered for these costly mishaps. EFG is contradicting itself and fraudulently promoting the purchase of its warranty to customers leading them to believe the components listed in the brochure are covered when in actual reality you attempt to put in the contract that it doesn’t cover any of this if its normal wear and tear. I don’t know of anyone who would or are capable of intentionally tearing or breaking any of these parts on their own so they can have them repaired and covered by a warranty/contract.
Both repairs that were covered by EFG were due to normal wear and tear and it was time for these items to be replaced. Those parts (fuel injectors and a/c cooling fans) were either a failure or a breakdown but either way it was from normal use of the vehicle. If the normal wear and tear clause was to be honored, then ALL PARTS THAT BREAK ON A CAR is normal wear and tear in some sort of way as long as the vehicle is in use and NO part should be covered by any warranty/contract entity; and there is NO REASON a customer should be offered to purchase ANY extended warranty/contract because it is useless and will not cover ANYTHING. So basically EFG is and has ripped off a lot of customers with false promises of warranty/contract coverage on parts that are not actually covered. EFG is using a double edge sward to its customers by stating in one way they are covered but then in fine print you’re really not covered if you are driving/using the car basically.
I'll say i am just getting to know EFG. From their behavior and all comments on this and other complaint boards they will pay a few small claims, but even then will have an excuse to not pay full claim. I think when most if not all people sign up for these warranties or service contracts, they are expecting and lead to believe this is major coverage for major break downs. This is not true, they will pay a few small claims that literally anyone can afford, a few hundred dollars. From my research they will pay an attorney more than they were going to pay out on the claim. This is not a nice group of folks. Remember when you purchase a service contract you might pay lets just say 3000 dollars, so you think wow i should have great coverage for that amount.. well not true, this is how it breaks down, the car dealer you bought warranty from gets about 2000 dollars, the company name on the warranty gets about 500 dollars and the people who actually administrate or pay your claim EFG get about 500 dollars. So spread that over 4 or 5 years. you are in effect paying 100 dollars a year for what could be thousands and thousands for even a miner breakdown . These folks can not afford to pay out anything with that business model, it's that simple. It is a scam, and its misleading anyway you want to frame it.
Hi, my name is Alex Drasil, and I am the Director of Client Management Services here at EFG Companies. I can assure you that we are in the business of honoring our contracts, not denying claims. If a claim is within the scope of a customer’s contract coverage, the claim is approved. All coverage is clearly stated in the contract, and we pay millions of dollars in claims every year. That is why we have an A+ rating with the BBB, and why we have received more national awards and certifications for customer service than any other product provider in the industry. If you are a contract holder and have questions about your contract coverage, we are always happy to walk through what is and is not covered – both before and after contract purchase. As a matter of fact, we have published an easy guide to buying a VSC on our website, to make sure customers know what they are buying when investing in a vehicle service contract: http://efgcompanies.com/contract-holders/vsc-your-easy-guide-to-buy.aspx. Again, if you have any questions, we’d love to speak with you directly. My number is [protected].
Boy you have been sued so many times in multiple states by State attorneys and others. How do you stay in business? As we all know, an A+ rating from the BBB is NOT based on customers satisfaction, merely on how quickly you respond to complaints, whether or not they are resolved. A+ rating is a total marketing scam. You don't get one unless you pay the BBB money first. And then you have the audacity to put "Fortune 500" on your website. Very misleading for a company that desperately needs credibility. Same for your vague reference for a "relationship" with insurance companies. What does that mean, you do lunch from time to time with them? They insure your building.