Alpha Warranty Services, Inc.

Complaint: ***
I am rejecting this response because:
Sincerely,
*** ***

* * Automotive contacted our claims department on Monday
December 7th at 12:17pm and informed us the tear down is complete
and they are ready for the vehicle to be inspectedThe inspection was
requested on 12/7/We also requested they send us an estimate of the repairs,
which was received on 12/7/The inspection can take to business days
to be completed

Complaint: ***
I am rejecting this response because:
My repair shop specifically told Alpha Warranty this was not caused by continual useThe symptoms never changed from my original claim
Sincerely,
*** ***

*** ***, In as much as we completely understand your frustration with this situation we must implore you to take a moment and look at the information we are providingThe coverage on your contract is based specifically on the part that has failed, not on what part is replaced by your repair facilityAs per the information provided by your repair facility the failure was not the caliper itself, it was the electric motor for the parking brake. The parking brake is not listed for coverage on this contract. Your repair facility even recognizes the differences in the caliper vs the motor. The receipt specifies that they replaced a “caliper (with electric motor)”, showing the need to distinguish that repair from a caliper “(without electric motor)”Additionally, these motors are available as separate components from the caliper. The fact that your repair facility chose not to investigate that option and replaced the entire caliper, unfortunately; does not change the coverage under this contract. Had your repair facility simply requested the parking brake motor, perhaps the reason for denial would have been clearer to you. This was an option available to them however for reasons unknown to us they did not pursue it. Ultimately, the failed part was the parking brake motor which is not is not listed for coverage in your contractTherefore, we are unable to provide coverage for this failure

Complaint: ***
I am rejecting this response because: I was charged dollars for the deductible and fluids please handle this or us this has been such an inconvenience for meI have a receipt and debit card payment showing the deductible payment plus fluids charge
Sincerely,
*** ***

Your company is composed of criminalsI fully intend to sue you if this turns out to be the scam this it looks likeI do not understand you can sleep at night knowing that you commit fraud against people who buy used carsI am going see if I can find a mechanic who will charge less than $to tear down the enginePlease state precisely what part of the engine you need "torn down" in order for you to "investigate" whether the engine failure is "covered" by your fraudulent warrantyPlease send me this information so I can search for a less expensive mechanic
Complaint: ***
I am rejecting this response because:
Sincerely,
*** ***

Thank you for contacting us about your concernI apologize if there was any misunderstanding about your coverageThe service contact is an itemized contact that cover items specifically listed, unfortunately it does not cover everything that occurs to the vehicleThe denial decision made on this
claim was determined by the information provided to us by your repair facilityThe repair facility did inform us that the cause of the failure to these components was due to the bolts that fasten to the engine mount breaking and that caused the engine to misalign and caused damage to the water pumpUnfortunately this was denied because, in your Vehicle Service Contract under "What Is Not Covered" it states: Covered components that are damaged by non-covered components are not coveredThe contract also excludes any bolts, nuts and washers for coverage, due to the damages being caused by the bolt this claims was deniedRental reimbursement is only on an approved claim, unfortunately because the repairs are not covered under the terms of your service contract there would be no rental coverage We sincerely apologize for any inconvenience this may have caused you

Thank you for contacting us about your concernUnder the definitions section on page of your service contact it defines a pre-existing condition as; A condition that may reasonably be assumed to have existed prior to the sale date of this CONTRACTPRE-EXISTING includes but is not limited to
any part that was broken, worn beyond serviceable limits, or making noise at the time of purchaseAny part or system that was not functioning properly upon the first attempt to operate or upon first inspection is also considered PRE-EXISTINGAll covered parts must be in good working order prior to sale for the VEHICLE to qualify for this CONTRACTFailures or breakdowns resulting from PRE-EXISTING conditions are YOUR responsibilityUnfortunately the degree of damage to the engine reported to us by your repair facility could not have occurred in the day or miles you had the vehicleWe do apologize for any inconvenience this might have caused you

Complaint: ***
I am rejecting this response because: I use my truck exactly as I said I would, mixed useI did not fill out the application the dealership where I bought it didIn my first conversation with the Alpha representative however it was acknowledged that I have a small remodeling business and that I use it for thatThere is probably a recorded messageMy policy is not about to expire, I purchased a 6year, 100,mile extended warrantyI never received the proper paperwork on it and the dealership closedBut I sure paid for itMy truck is registered as commercialWhy? Because I have no choiceA Dodge Ram Cummins heavy duty IS A COMMERCIAL VEHICLEAlpha just wants to accept payment for warranty policies, not honor themIf they aren't going to do their job, they don't deserve to be paidIf they return all of my money I will gladly take it to an honest company
Sincerely,
*** ***

Thank you for contacting usWe apologize for the delay in shipping the transmission to your repair facilityWe have waived your $deductible for this claimRegarding issuing payment to the repair facility, we reached out to them yesterday (January 3rd) and requested they fax us the final
invoice for the repair, they stated they would send it the following morningWhen we had not received the invoice today we reached out to them again for the invoice so we could issue paymentWe received the invoice today at 12:24pm and have paid them by credit card

Mr. [redacted],   Customer has rejected the response: I am rejecting this response because: My repair shop specifically told Alpha Warranty this was not caused by continual use. The symptoms never changed from my original claim.              We understand that your repair facility may have stated that the damage found inside the transmission is not from long term use; However, the evidence does not agree with them.    The type of metal fatigue found at the band anchor inside the transmission is not sudden or catastrophic.  The round hole in the metal has been stretched and pulled severely into an oval.  When aluminum fails catastrophically, it breaks and cracks.  Only long term pushing and pounding can cause it to stretch and roll sideways, which is the condition present inside your transmission.                 The drum shows various shades of discoloration and the band shows multiple gouges in the friction material.  These are evidence of the drum and band having been overheated severely, or overheated repeatedly.  Either way, the transmission would have given fair indications that it needed repair before it got anywhere near as severe as it has.                 The continued use also allowed debris to build up in greater and greater amounts inside the transmission.  This increased debris flows the through the transmission, everywhere that fluid goes, meaning that parts that likely could have been reused with a basic rebuild of your trans, such as the valve body, now will require replacement as well.  We no longer have the option of a reasonable rebuild, as the buildup inside the trans means we are required to replace every single component, or replace the complete unit.                 You mentioned that “The symptoms never changed from my original claim.” The fact that the transmission failed in the manner listed above indicates that continuing to run the transmission for over a year after you first noticed the issues caused further damage and ultimately the catastrophic failure. Please see page 3 of your contract under what is not covered #9: Repairs required due to lack of proper and responsible maintenance, abuse through improper towing, and abuse through continued operation of an impaired VEHICLE that shows signs of a clear mechanical problem.                Unfortunately, due to the evidence above we are unable to assist with this repair, we do apologize for this; however, we are bound by the terms of your contract.  Tell us why here...

[redacted], Thank you for contacting Alpha Warranty. We have reviewed your claim and all the information gathered while researching the failure of your vehicle. An inspector was sent out to verify the information provided by your repair facility, pictures were taken of the areas of concern and...

a detailed report was created based on this inspection. Upon review of these pictures it was noticed that there is an extreme amount of sludge build up in your tension passage, timing components, oil pump and head. As per the terms of your contract, on page 4 #8 under what is not covered it states: 8. Repairs required due to lack of proper and responsible maintenance, abuse through improper towing, and abuse through continued operation of an impaired VEHICLE that shows signs of a clear mechanical problem. Repairs required due to overheating, regardless of the cause of overheating, or repairs required due to improper quantity or quality of fluids, regardless of the cause of the improper quantity or quality of fluids. These include, but are not limited to, loss of engine oil, coolant, transmission fluid, freon, power steering fluid, or axle grease. Repairs resulting from rust, sludge, corrosion or water intrusion. At this point we asked if you could provide maintenance records (proof of the oil changes to the vehicle). As per the terms of your contract Page 3 under “Contract Holder Obligations” In order for this CONTRACT to remain in force, and to avoid denial of a CLAIM because of improper maintenance, YOU are required to follow the VEHICLE manufacturer’s required maintenance schedule. Some VEHICLE manufacturers require that the timing belt be changed at a specific interval (See MAINTENANCE section for details).  YOU must keep and make available verifiable, signed service/purchase receipts (no handwritten receipts) which show that all maintenance has been performed within the time and mileage limit requirements. The maintenance records you provided are not usable for the following reasons. They are hand written They do not list a name, phone number or address of the repair facility. No signature is provided as proof of work being completed. The documents you provided are printed “vehicle maintenance” records not receipts of completed service. The maintenance records you provided are not “verifiable “therefore they cannot be considered as proof of maintenance completed. The combination of the above information is why the determination was made that this is not a warrantable issue based on the terms of the contract. Therefore, we are unable to offer any assistance in this case and the claim will remain denied.  Tell us why here...

Complaint: [redacted]
I am rejecting this response because:  AWA and Alpha Warranty are telling me the exact opposite scenarios.  They both agree that it was and is not my the consumers issue but they both point the fingers at each other.Seems as though I need to file a complaint against AWA as well and see where in the end the truth really lies.  The FACT is that I personally have incurred $240 worth of rental car charges that I am not responsible for.AWA is an AGENT of Alpha and under AGENCY LAW that AGENT works on behalf of the provider.  The AGENT has said contract to work for provider and both carry insurance for mishaps such as this one.  It is not nor is it ever the liability of the consumer to cover expenses regarding the lack of collaboration or expense coverage between AGENT and provider or vice versa.  Please review federal agency laws.
Sincerely,
[redacted]

Thank you for contacting Alpha Warranty Services. We apologize for the misunderstanding you experienced during the claims process, I have reviewed your specific situation and have found the following information. February 23rd, you called into our customer service department to file a claim....

February 24th, you spoke with a manager, at that time she advised that we are unable to secure a rental vehicle for you for two different reasons. The first being, the benefit is done on a reimbursement bases. Second, it is based on the authorized labor hours of an authorized claim. At that point in the process we did not know if this was going to be a covered component. Therefore, we were unable to determine if there would be a rental benefit available to you. February 27th.  Your repair facility contacted us, they advised us of the preliminary diagnosis. They advised that the engine “may have been damaged by the catalytic convertor coming apart and pieces getting into the cylinder.” (please reference page 3 under What Is Not Covered line 6 of your contract) “Covered components when damaged is caused by non-covered components” (the catalytic convertor is a non-covered component on this contract) therefore damaged cause to covered components by the catalytic convertor would not be eligible.  That same day, we advised your repair facility that we would need them to show the point of failure so we can proceed with the claim, we also requested maintenance records for this vehicle. They advised that you do the maintenance on your own vehicle (please refer to page 3 of your contract under Contract Holder Obligations “You must keep and make available verifiable, signed service/purchase receipts (no handwritten receipts) which show that all maintenance has been performed within the time and mileage limit requirements.” These documents have yet to be provided. March 1st, your son called and advised us that you were going to issue a Revdex.com complaint, at that time we attempted to explain to him that nothing has been approved nor denied. We still had not been provided with an actual point of failure.  On this same day, we received the self-inspection photos from your repair facility. March 3rd, your repair facility advised that they had point of failure and asked us to set up a 3rd party inspector. They once again advised that the catalytic convertor was plugged and he thinks it came apart and caused the damage March 7th, we received the inspection report, the engine was not torn down to point of failure when the inspector arrived. We did receive the estimate for the repairs from the repair facility.  That day we made the decision to (as a show of good faith) provide coverage on this claim. We offered to purchase an engine from our vendor for your vehicle in the amount of $1330.00, we will cover the labor cost for $1475.80 and finally an additional $188.00 towards the reasonable cost of diagnosis. For a total amount of $2993.80. We have advised the repair facility of this decision. Once again we do apologize that the process did not unfold flawlessly as we both would have preferred; however, we do believe that this is a more that reasonable solution. We consider this matter resolved and no further action will be taken on our part regarding this request.

Mr. [redacted],   We have made every attempt possible to get your dealership to provide you with the cancelation refund amount that we sent to them when you canceled your service contract. Because they have been uncooperative with both us and yourself we have made the determination that we...

will provide you with the pro-rated refund amount that should have been provided by the dealership.   Please accept our sincere apology that this issue has taken so long to resolve. We are sending a check in the amount of $583.18 directly to you by regular mail. The check will go out tomorrow, the USPS tracking number will be [redacted]. This amount reflects the pro-rated amount that would have been due back to you.   Once again, we apologize for any inconvenience this has caused.

The repair facility advised Alpha that they thought the rings are worn causing the excessive oil usage. Based on the contract terms, the claim was denied correctly. Normal wear is not a mechanical failure. From the What Is Not Covered section of the contract on page 4, line 11; 11. Repairs to...

correct loss of compression or oil consumption related to worn, burnt, collapsed or carboned piston rings or valve parts.  If you would like to return to the repair facility and authorize tear down of the engine to have these parts inspected by a third-party inspector, that can be done. However, if the condition is verified that the diagnosis is correct with worn piston rings, the claim will not be covered by your vehicle service contract. Catastrophically failure of the engine will not cause an accident or the vehicle to roll over, The engine could fail and stop running if this condition is not corrected and the oil level is not monitored and runs too low. At that time, you can just pull over to the side of the road as the vehicle will maintain some speed for a short distance.

Complaint: [redacted]
I am rejecting this response because: I have personally worked in the automotive service industry for over thirty years. I am an ASE certified master technician. I know for a fact that parts DO fail with very little or no warning what so ever. I have personally seen brand new vehicles arrive at the dealership, with less than twenty miles on them, broken and rendered non-drivable. It happens all the time, and is evident by the many, many "Technical Service Bulletins" on all vehicles from every manufacturer!. These are machines they break and parts fail prematurely. These are the reasons people buy service contracts such as the ones you sell. Your company, Alpha Warranty, is merely using this vague clause in the contract to avoid paying and upholding your obligations. My contract states "All INTERNAL LUBRICATED PARTS" are covered. The timing chains, tensioners and guides are all INTERNAL LUBRICATED PARTS! I will not except this decision. Your company is making a lot of money at the expense of innocent, ignorant people. Neither You nor the public have heard the last from me on this matter.
Sincerely,
[redacted]

This concern is being address with [redacted] by phone.

Mr. [redacted],   Thank you for allowing us to clarify the situation with your claim.  Your repair facility provided a list of several items that needed attention, many of those are listed for coverage under your service contract. Here is a listing of the items that are covered,...

Stabilizer Bar Link, Universal Joint, water pump and starter. These items are listed for coverage and therefore have been approved. Regarding your cylinder heads, they are specifically listed in the contract as only covered if damaged by an internally lubricated part of the engine. Essentially, some part of the moving pieces in the motor must fail and cause damage to the cylinder head in order for it to be covered as per the terms of your service contract. Unfortunately, this is not the cause of the damage to your cylinder heads, the contract doesn’t offer coverage for parts simply because failure to them is well known.  We have reviewed your claim and for the above-mentioned reasons the denial on the cylinder heads will stand.  We will be unable to offer any assistance on this repair.

[redacted], Thank you for allowing us the opportunity to address the claim in question.  We are going to focus on two items that as far as we can tell are the items that need further clarification.  The first being the rental coverage, the terms of your rental coverage benefit is laid out specifically in the contract there is no grey area or any mention of “reasonable” costs. Please refer to page ne The Declaration Page under Rental Coverage: “The ADMINISTRATOR will cover one (1) day of rental for the first four (4) hours of covered labor and one (1) day of rental for every 8 hours of covered labor thereafter (as defined in the ALLDATA® software). The VEHICLE must be retained overnight at the REPAIR FACILITY in order to qualify for rental coverage. Rental coverage is not provided for downtime including, but not limited to, waiting for: parts, scheduling for services, inspections or diagnostics. Rental coverage is also not provided for weekends or holidays. YOU will be reimbursed up to thirty-five dollars ($35) per day. The total rental coverage cannot exceed one hundred seventy-five dollars ($175). Receipts will only be accepted from a licensed rental car agency or a REPAIR FACILITY.   The second issue is the use of the term “reasonable” in the cost of the repair. “Parts were available locally. It is not reasonable to wait a week for the delivery of parts available locally when the amount of the repair is covered under warranty” “If their solution is a part that will take a week to reach the repair facility, when parts are readily available locally, the incurred week plus of wait time is their doing and is their responsibility to cover. I am disputing their definition of reasonable.” Please refer to page 4 under “Limits of Liability” The limits of OUR liability will be the lesser of the reasonable cost to repair or replace any part with another of like kind and quality, less DEDUCTIBLE. Reasonable costs are defined as charges for the repair or replacement of parts covered under this CONTRACT at prevailing retail labor rates, using parts of like kind and quality, which may include serviceable used parts, rebuilt parts, aftermarket parts or remanufactured parts, as customarily used in the automobile industry and as determined by the ADMINISTRATOR. It is expressly understood that replacement parts NEED NOT BE NEW. Reasonable costs are also limited to charges necessary to correct the actual cause of a covered MECHANICAL BREAKDOWN.      When discussing this issue, we need to keep in mind the value of the vehicle, the vehicle in question is a 2003 Nissan Frontier with 159,071 miles on it. Retail value is $9125.00, the repair facility wanted to charge $3,122.50 (part and labor) that is 34.21% of the value of the vehicle. We could have sent in your part for a fraction of that cost; however, you refused that offer and decided to go with your repair facilities part.   We understand how frustrating car repairs can be and truly do apologize for the amount of time it took to complete your repair, we feel that we have represented our contract accurately and try to educate our customers regarding the terms and conditions of their contracts.  If we have fallen short of that in this case, we will most certainly use this as a learning opportunity moving forward. Thank you, Tell us why here...