Alpha Warranty Services, Inc.

Thank you for the opportunity to provide you with additional information, it is our hope that this information will help you to understand why we had to deny your claim based on the terms of the service contract. On April 24th 2017 we received a call from All Star Dodge requesting to start a claim...

for your 2004 Jeep Grand Cherokee. They told the claims adjustor that the car was “towed in. It overheated and had a knocking noise”.  At that point we requested the repair facility to provide further diagnosis so we could determine exactly what had failed. Your repair facility advised that” the heads were removed, the #5 valve seat dropped and the coolant temperature sensor got hot enough to melt.” The temperature sensor also known as the heat tab is a small metal tab that is designed with a material in the center that will monitor the engine temperature and will melt if the engine overheats. As you can see in the Attached pictures, the heat tab in your vehicle has clearly been compromised due to the overheating of the engine.  In as much as we understand and sympathize with your frustrations in this situation we must refer to your vehicle service contract on page 4 under the “what is not covered” heading, #9.                 9. Repairs required due to overheating, regardless of the cause of overheating. Because we are bound by the terms of the contract we must stand by our decision to deny this claim.

The Limit of liability as stated on your service contact states: LIMITS OF LIABILITY - A La Car Powertrain: The aggregate total of all pending and paid CLAIMS shall not exceed the NADA trade-in value of the covered VEHICLE at the time of loss. The NADA trade in value of your vehicle is $[redacted]. Alpha authorized the maxim amount allowed under your service contact for this repair. In regards to the delay in processing your claim, you opened the claim on 10/9/2015, as per the terms of your contact you were required to give the repair facility authorization to tear down the engine to the point of failure. We did not receive notification from your repair facility until 12/7/2015 that the tear down had been authorized. I apologize the engine was shipped to the incorrect repair facility. Alpha had the engine picked up and delivered to the correct facility the following day. Due to the one day delay caused by the miss-shipping of the engine we are able to provide you with one additional day of rental reimbursement. I apologize for any incontinence this may have caused.

[redacted], Thank you for the opportunity to address your concerns regarding the claim submitted for the pistons and rings on your 2011 Audi Q5. Please be advised that this specific issue is a well-known breakdown for your vehicle, so much so that Audi offered an extension to the manufacturer’s...

warranty for that failure.  It was determined by your repair facility that the vehicle was losing oil and the reason is due to loss of compression. Please see page 4 under What is Not Covered: 11. Repairs to correct loss of compression or oil consumption related to worn, burnt, collapsed or carboned piston rings or valve parts. Because this is a well-documented failure with your vehicle and because of the above-mentioned items that are not covered we made the decision to deny your claim; however, if you wish to proceed you will need to authorize the repair facility to tear down the engine to point of failure. If as we suspect the cause of the failure is due to the pistons and rings being worn, burnt, collapsed or carboned the claim will be denied and the cost of the breakdown will be your responsibility.

[redacted], Thank you for contacting Alpha Warranty Services. We apologize for the misunderstanding regarding the cancelation of your Vehicle Service Contract.  We researched your concerns, it appears that you purchased the contract on July 9th 2014 with the terms of 3 years or 85,000...

miles (whichever comes first). Throughout the time that this contract has been in force we have had numerous conversations with you regarding the specific coverage provided. You purchased the A La Car policy which specifically covers the internally lubricated parts of your Engine, Turbo/Supercharger, Transmission & Transfer Case. You did select the Air Conditioner, Drive Axle, Electrical and Fuel options, these items have specific parts that are eligible for coverage listed on your contract.  It appears that 3 of the claims you called in were directly related to your suspension (unfortunately you do not have suspension coverage on this contract). You did call in a claim for a fuel delivery pump, that was listed for coverage therefore we paid that claim accordingly. The first time we were advised that you were attempting to cancel this contract was on this Revdex.com complaint.  We show you called in a claim on March 10th 2017, there was no mention of your intention to cancel the contract at that time. As per the terms of your contract on page 4 under the “Cancelation” heading. If this contract is canceled after the first thirty (30) days, Alpha Warranty Service, Inc. Will refund the unearned wholesale purchase price to you on a pro rata biases. The refund will be equal to the lesser amount produced using either the number of days the contract was in force or the number of miles the vehicle was driven prior to cancelation, less any claims paid and an administration fee of fifty dollars ($50). Your contract is set to expire on 8/23/2017 or at the mileage of 250,680. On the last claim dated March 10th 2017 your mileage per your repair facility was 219,937 (this leaves a remainder of less than 31,00 miles and 5 months on this contract).  Based on this information the pro-rated calculation of miles, time and claims paid there would be no refund available on this contract if you decide to cancel. Once again we apologize for the inconvenience this may have caused, we hope the information provided will clear up any confusion you may have had.

Complaint: [redacted]
I am rejecting this response because:
This company and dealer has been going back and fourth they aa of 12:50pm still hhasn't paid any part of claim and the amount they claim to have paid is not the amount stated by dealer as payment amount. I am on my way to dealer and will forward a copy of my billing and payment.
Sincerely,
[redacted]

Dear, Mr. [redacted]: Thank you for contacting us about your concern. We do apologize for the delay you had experienced during the claim process. We did however review the contact history on this claim and we found that you had initially started the claim with us directly on 11/20/2015 and you had...

called again on 12/21/15 to check on the claim and we informed you we were waiting to hear from your repair facility at that time. We did not hear from your repair facility for the first time until 12/22/15 which was 32days after you called us to start the claim originally and at that time we advised the repair facility to get your authorization for the tear down on the engine and for them to call back when they were ready to order the inspection. 6 days later on 12/28/15 you had called in again to check status of the claim, we advised you that we were still waiting to hear from the repair facility for tear down and to order inspection. On 1/13/16 your repair facility called in to order the inspection and we requested for them to send the estimate again. The timeframe for inspections to take place is 24-48hrs after it is ordered. On 1/15/16 we reviewed the inspection report and contacted the repair facility again for the estimate to be sent to us, two separate times on this day. On 2/15/16 you had called in to check status of the claim and we informed you that we were still waiting for the estimate to be sent to us. On 2/26/16, 42days after the first time we had requested the estimate originally, you called in again to check status of the claim and we explained that we had called the repair facility multiple times and have still not received the estimate for the repairs they would like to perform. Later that day we received the estimate at 9:45am and claim was authorized in the amount of $[redacted] for parts and labor, after your $100.00 deductible, 2 hours after receiving the estimate.  Unfortunately these gaps in between the contact your repair facility made with us caused the claim to take longer then necessary to process. Thank you for your understanding and have a great day.

That still doesn't fix my head stud issue.
Complaint: [redacted]
I am rejecting this response because:
Sincerely,
[redacted]

Thank you
for contacting us in regards to your concerns with how your claims have been
handled. In regards to the transmission repairs, on 5/27/2014 a Nissan Dealer
called in a claim on the CTV transmission, we requested they disassemble the transmission
so we can verify there had been an...

internal mechanical failure.  The Dealership was unable to disassemble the
unit so we requested it be moved to a repair facility that could. 5/29/2014 our
claims department received a call from Aamco that they were going to disassemble
the transmission so we could have a third party inspector verify the failure. The
purpose in disassembling the transmission is not to rebuild it but to verify
that the failure is covered under you service contact. Aamco contact the claims
department on 6/10/2014 in inform us they had the transmission apart and we
could order an inspection. The inspection was completed the following day
6/11/2014, we requested Aamco send us an estimate for the repairs they wanted
to perform. Aamco faxed us the estimate on 6/13/2014 stating they wanted to use
a remanufactured transmission, the cost for the unit itself through their vendor
was $[redacted]. We were able to find a used transmission with 69,000 miles on it,
which was almost 100,000 less than the current mileage on your vehicle, for
$[redacted]. Aamco refused to allow us to supply the transmission, because we were capable
of purchasing the unit for $[redacted] that became the maximum amount we could pay towards
the part. On 6/16/2014 the amount of $[redacted] less your $[redacted] was authorized
to Aamco. Aamco contact us 6/24/2014 to notify repair had been completed. The
service contract is to assist with the cost of mechanical issue, some rental consideration
is allotted to lessen the inconvenience of being without a vehicle while authorized
repairs are being performed. The rental coverage is outlined on the first page
or the contract, “ The OBLIGOR will cover one (1) day of rental for the
first four (4) hours of covered labor and one (1) day of rental for every eight
(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. Downtime waiting for parts or scheduling
for service is not included. The OBLIGOR will reimburse YOU up to
[thirty-five dollars ($35)] per day. The total rental coverage cannot exceed
five (5) days, or [one hundred seventy-five dollars ($175)]. Receipts will only
be accepted from licensed rental car agencies.”. The labor hours required to
remove, disassemble, and replace your transmission were 8.8 hours. Even though
your claim was only eligible for one day of rental we reimbursed you for two. In
addition we reimbursed you the diagnoses charges accrued at the Nissan Dealer
in the amount of $[redacted].
The Service
contact is itemized, it specifically list all parts covered under the contact. On
9/23/2015 Landers Mc Larty Nissan reported to us that the Ignition switch was
failing and the radio has an internal failure. The 2nd page of the contact
goes over all plan coverage. Under the electrical section it list; Alternator,
starter motor, voltage regulator, horns, neutral safety switch, reverse
indicator switch, turn signal switch, distributor, cruise control transducer. Unfortunately
the items requested by the repair facility are not listed for coverage under
your contact.  I apologize for any frustration
or inconvenience, however we only cover items listed for coverage on your
contact.

[redacted], Thank you for allowing us to opportunity to clarify the denial of this specific claim for the valve cover gasket. I will address you concerns in the order they were presented to us. “I've have two repairs on my BMW at roughly $2300 and none of it was covered underneath the...

warranty.” On Oct 26th, 2017 you submitted a claim which was approved in the amount of $1023.55, as per the terms of your vehicle service contract we approved the failures that were listed and eligible for coverage based on your specific contract. “I gave the repair shop all of my warranty information and they had to call for two days, wait on hold for over an hour on most calls, and did not receive any call back until I called several times forcing them to contact my repair shop.” Fortunately, we record and document all the calls that are received, we pulled the phone number for your repair facility and show that they did call in two times. First call was on 4/20/2018 at 10:31 am, they waited 18 seconds before the call was answered. Second call was on 4/20/2018 at 3:29 pm, they waited 15 seconds before the call was answered. This request came in on 4/20/2018, your repair facility was advised that same day that this was not a covered repair, any delay on this claim was not on our end. “I would like a supervisor to contact my mechanic and go over the repairs needed” As per your request your repair facility has been contacted, the reason for the denial has been explained and they confirmed that the failure was a cracked gasket. Finally, regarding the denial of the valve cover gasket. The first claim regarding this item was submitted to us on 12/8/2017. At that time your repair facility was advised that this is not a covered component unless damaged by an internally lubricated part. There was no indication at that time or on the next claim that was submitted 4/20/2018 for the same issue that this was anything more than a failed/cracked gasket. No evidence that it was damaged by an internally lubricated part (as per the terms of your service contract) when the claims supervisor spoke with your repair facility they confirmed that the failure was indeed a crack and not caused by an internally lubricated part. Please keep in mind that all our service contracts are parts specific, if it is eligible for coverage it will be listed on your paperwork. If the part is not specifically listed by name it will not be considered for coverage. Once again, we apologize for any miscommunications or delays that we may have caused and hope this information provides you with some insight as to the reason this claim was denied.

Dear, Ladarian D[redacted],
 
Thank you for notifying us of your concern.
The reason for the claim being denied was for the following reasons: The Safety
Restraint System and...

Timing Cover Seal are not covered components under this
warranty contract, also the Valve Seals have not failed yet and your repair
facility was unfortunately not able to demonstrate the failure on the tie
rod's. According to your Warranty Service Contract we are unable to cover any
component that is still performing the function for which it was designed any
gradual reduction in operating performance is not considered to be a mechanical
breakdown. We do apologize for any inconvenience this may have caused and we
appreciate your understanding.

Complaint: [redacted]
I am rejecting this response because: I've already authorized it now you people won't even return the mechanic's call to come look at it! Respond to his phone calls please!!!
Sincerely,
[redacted]

Complaint: [redacted]I returned Delicia's call and spoke to Carlos. I do not need to hear this again. There is no reason the repair shouldn't be covered. You all are causing me a great deal of distress. You have my email address. If you have something new to say email me. I will try to reach Delicia one more time.
I am rejecting this response because:its the same rhetoric.
Sincerely,
[redacted]

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that Roswell Mitsubishi has to send the refund  to Capital Finance, and it is subject to Roswell Mitsubishi accepting that they have not sent funding to Alpha Warranty Services. If they dispute I want to get back once again and may lodge complaint with Federal Trade Commission and also seek help from attorney the possible resolution to get the money back with costs and interest paid because of the delay caused.
Sincerely,
[redacted]

Thank you for contacting us regarding your concern. I apologize if you felt like it was a fight to have you claim approved. Your repair facility contact us on 10/27/2016 at 4:30pm to start the claims process, our claims department authorized $1,075.50 less the $100 deductible to your repair...

facility on 10/28/2016 at 9:52am. The approval of the claim took less than one day. Your repair facility opted to have Alpha Warranty purchase the differential from one of our trusted part vendors and have it shipped to them. The vehicle service contact is meant to assist with the cost of covered mechanical repairs so there is limited rental reimbursement included. On the first page of your contact it explains the terms of the rental coverage: “The OBLIGOR will cover one (1) day of rental for the first four (4) hours of covered labor and one (1) day of rental for every eight (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. Downtime waiting for parts or scheduling for service is not included. The OBLIGOR will reimburse YOU up to [thirty-five dollars ($35)] per day. The total rental coverage cannot exceed five (5) days, or [one hundred seventy-five dollars ($175)]. Receipts will only be accepted from licensed rental car agencies.” We apologize for any inconvenience this may have caused and thank you for your understanding.

Thank you for contacting us in
regards to your concerns with the claims process. Tear down is necessary to determine
the cause of failure I understand there is some risk involved in authoring...

the
tear down to the repair facility. If the failure to your engine is listed for
coverage then you have nothing to worry about and we’ll pay for all of the tear
down, as long as ALLDATA supports it. If the failure is not covered by your
service contract you will be responsible for the cost of the tear down. As
stated in the service contact you purchased and agreed to, under the CONTRACT
HOLDER OBLIGATIONS: YOU are responsible for authorizing and paying for any tear
down or diagnosis time needed to determine if the VEHICLE has a covered
breakdown. If it is subsequently determined that the repair is needed due to a
covered breakdown, the OBLIGOR will cover such diagnostic and/or teardown
charges per approved CLAIM, not to exceed diagnostic times listed in the
ALLDATA® software (if not listed, up to sixty-five dollars $65). If the failure
is not a covered breakdown, YOU are responsible for payment of such tear down
or diagnosis. I apologize for any inconvenience and thank you for your
understanding.

Complaint: [redacted]
I am rejecting this response because:
I was told to fax in my bill to be reimbursed and that is what I did. After a week I called back and was then told I would not be paid. I never received a copy of any contract from the dealership who sold me the warrantee. Furthermore when I took the vehicle in for diagnosis I was told the repair would not be covered under the warrantee which is why I didn't bother  calling, come to find out something different was wrong with the vehicle and it is covered. I feel that because the repair was covered I should be reimbursed the full amount I paid for the repair. Especially since I know the repair shop I used was less expensive than the dealership for the repair.
Sincerely,
Matthew P[redacted]

[redacted],   Thank you for allowing us to address your concerns. You had the A+ Enhanced vehicle service contract, this is a part specific contract. The parts that were eligible on your contract were listed under numbers 1 – 16 under “The following parts are covered. Parts not...

specifically listed are not covered”   For instance: 6. ELECTRICAL: Alternator, starter motor, starter motor solenoid, voltage regulator, power window motors and regulators, horn, neutral safety switch, reverse indicator switch, turn signal switch, distributor, cruise control transducer, wiper motors and washer pumps, ignition igniter, ignition module, coil packs, power seat motors, crankshaft position sensor, EVP sensor, headlamp switch, heater/AC blower motor speed switch, ignition switch, ignition switch lock cylinder, knock sensor, stop lamp switch. 7. FUEL SYSTEM: Electric fuel pump, fuel delivery pump, fuel injection pump, metal fuel delivery lines.   The above mentioned items would have been eligible for coverage under your contract, it is unfortunate that the specific repairs your vehicle needed were not listed for coverage; however we do have to facilitate the service contract as it is written. Your contract has run the full term of 4 years or 100,000 miles and is now expired, we have honored the contract as per the terms set forth by the contract.   Due to the fact that the service contract went full term and is now expired, you no longer have an active contract and we will be unable to offer any further assistance.

I understand how
frustrating this must be. On the Declaration Page of the contact it states “This VEHICLE SERVICE CONTRACT becomes effective
on the date purchased unless rejected due to nonpayment,
misrepresentation/fraud, or the Administrator's determination of VEHICLE/PLAN ineligibility within the first sixty (60) days following purchase. Payment by
financing, cash, credit card, or check must be postmarked within five (5)
days of the purchase date". Your service contact was entered on 5/20/2015, and
was rejected for non-payment on 8/18/2015, and letter was sent to you explaining
the contact was rejected for non-payment. You contact Alpha on 9/14/2015 to
inquire about the status of your contact on 9/14/2015 at which time we refereed
you to AWA. AWA then contact us on 9/15/2015 to make payment on your service
contact. We understand it was not your fault the service contact had not been
funded and was not in effect, however until the service had been paid for the
contact is not in effect nor will we be able to reimburse you for the rental
charges you accrued while waiting for your contact to be funded. We are in compliance
with all applicable agency law. I apologize for any inconvenience this may have
caused and thank you for your understanding.

Thank you for contacting us about your issue.  The denial of your claim was determined based off of the information provided to us by your repair facility. The repair facility did advise us that the damage caused to the axle shaft was due to the protective boot being torn and loosing axle...

grease. Unfortunately due to the failure being caused by the boot being torn, this failure is specifically excluded for coverage under "What Is Not Covered" under number 10, in your Service Contract; “Damage caused by torn constant velocity joint boots, or any other protective-type boot on any part is not covered”. The wheel hub and struts unfortunately are not listed for coverage under your A+ program (1-12) so these items were denied accordingly. We are unable to reimburse you for repairs not covered under your service contact. If you choose to cancel your Vehicle Service Contract, you may do so by contacting your selling Dealership to submit that request. Cancelations are prorated based off of the mileage driven and time the contract has been in effect for, from purchase date to cancel date, however this Service Contract does provide coverage to major high dollar repairs such as your engine, transmission and many other components, that could potentially be quite useful for future repairs. We apologize for the inconvenience of this claim being denied for coverage and thank you for your understanding.

Thank you
for contacting us in regards to your concern with the rental coverage. A Vehicle
Service Contract is meant to assist you with the cost...

of machine issue that may
occur, we have added some rental consideration to the contract to help ease the
burden of being without a vehicle while covered repairs are being performed. The
rental coverage as stated on the first page of your service contract is; “Rental COVERAGE: The OBLIGOR will cover one (1) day of
rental for the first four (4) hours of covered labor and one (1) day of rental
for every eight (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. Downtime waiting for
parts or scheduling for service is not included. The OBLIGOR will
reimburse YOU up to [thirty-five dollars ($35)] per day. The total
rental coverage cannot exceed five (5) days, or [one hundred seventy-five
dollars ($175)]. Receipts will only be accepted from licensed rental car
agencies”. Alpha has authorized the claim to replace the alternator with your repair
facility, unfortunately the repair takes 3.1 hours so the claim is not eligible
for rental coverage. I apologize for any inconvenience this may have caused and
thank you for your understanding.