Alpha Warranty Services, Inc.

Due to the modifications (previously listed) to the vehicle it is not eligible for service under the terms of the Alpha Vehicle Service Contact, regardless if the vehicle was purchased with the modifications. Alpha is not stating you have done anything wrong, only that we are unable to cover a vehicle with these modifications as per the terms of the contract. The Alpha contract is not insurance policy it is a Vehicle Service Contact, as stated on the on the first page of the contact “THIS IS NOT AN INSURANCE POLICY.” And again mentioned on the 2nd page under GENERAL PROVISIONS “1. This CONTRACT is not an insurance policy. Unless otherwise regulated under state law, the contents of this CONTRACT should be interpreted and understood within the meaning of a "service contract" in Public Law #93-637”. This Vehicle Service Contact has been canceled because it is not eligible for service, and a refund was issued to the dealer [redacted], Inc.

Thank you for contacting us in regards to your concern. I apologize if it was explained the lift kit was the only reason we are unable to honor this contact. Your 5 year, 100,000 mile A+ VSC was submitted to Alpha on 6/21/2014, the lift kit surcharge was selected. On page 2 of the contract under...

definitions its states “LIFT KIT/TIRE MODIFICATION SURCHARGE: A surcharge that, when applied, extends eligibility to VEHICLES with a maximum of six (6) inches (both height and width) larger than the manufacturer specifications of professionally installed suspension lifts and oversized tires (does not cover the lift kit).” An inspection of the vehicle by a third party found a 6” suspension lift and 37” oversized tires, totaling 8.7” over manufacturer specifications, this exceeds the lift kit/tire modification allowance by 2.7”. In addition to exceeding allowance for the lift kit/tire modification the inspector found several other modifications, including: Catalytic Convertor is removed, which violates federal law, it prevents the engine from knowing the proper parameters under which it should perform, Muffler is removed , this in conjunction with the catalytic convertor being removed allows for a free flowing exhaust system which allows the engine to put out higher power levels which in turn could lead to damage of the transmission and engine, EGR system is removed, this also violates federal law, this modification requires specific tuning in order for this kit to be installed, and a Cold Air Intake. These medications cause undue stress on the vehicle and are not permitted under the terms of the contact. On page 4 of your contact under INELIGIBLE VEHICLES it list “any modified vehicle”. In the WHAT IS NOT COVERED section. Item 13 it states “No COVERAGE will be granted under this contract for any damage caused by failure to maintain the VEHICLE to the standards of the manufacturer. This includes, but is not limited to: failures resulting from aftermarket modifications. Examples include, but are not limited to: suspension LIFT KITS (unless applicable surcharge is applied), superchargers, nitrous oxide kits, GPS systems, lighting accessories, stereo systems, headers, altered ignition system, altered engine management systems, and free flow exhaust system, regardless if VEHICLE was purchased with such.”. Once Alpha was made aware of the modification to your vehicle rendering it ineligible for services under the terms of your contact it was canceled. On page 4 on the contact under CANCELLATION it states “Alpha Warranty Services, Inc. may cancel this CONTRACT based on one or more of the following reasons: (A) nonpayment of the CONTRACT purchase price by YOU; (B) a material misrepresentation made by YOU; or (C) a substantial breach of duties by YOU relating to the VEHICLE or its use. If this CONTRACT is cancelled by Alpha Warranty Services, Inc., the refund will be the unearned wholesale purchase price to YOU calculated on a pro rata basis. 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 cancellation, less a cancellation fee of fifty dollars ($50).” Even though the contact was in effect for almost 2 years, Alpha agreed to not prorate the refund and only deduct paid claims. We apologize for any inconvenience this may have caused and thank you for your understanding.

Rental coverage is based off the approved labor hours to complete the covered repair. Your service contact states “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).”. It is unfortunate the repair facility had the vehicle for over 36 hours to complete a 3.1 hour repair, however rental coverage is determined by approved labor hours (as listed in ALLDATA), down time is not covered. Thank you for your understanding.

I apologize in the previous response I referred to your repair facility by the incorrect name. We do have Walton's Auto Service at 918 Us Hwy 11 Gouverneur, NY 13642 listed on your claim. The engine that was purchased on 11/16/2016 through one of our trusted vendors was shipped to Walton's Auto Service at 918 Us Hwy 11 Gouverneur, NY 13642. Attached you will find a screen shot of the phone records between Alpha and Walton's Auto Service and 315.287.7277, also the calls between Alpha and the customer 315.816.7025

Thanks you
for contacting us in regards to your concerns.  
I apologize
if you feel the claim was unnecessarily delayed. The service recorded are only
requested when there is evidence that the vehicle has not been properly
maintained. A third party inspector examined the vehicle...

to confirm failure of
the engine and they reported to us; Failures demonstrated are consistent with
lack of lube most likely from a run low condition, Oil filter brand is a Fram
and appears to be old, Oil pan residual has a large amount of bearing debris, Residual
oil in oil pan has pockets of what appears to be fresh oil suggesting oil was
added after engine failure. The service contact states you are required to keep
and make available the vehicle service records. The 3 service records that were
sent stated you provide the oil and filter to be used. [redacted] auto dose have a
business license to perform some vehicle maintainer out of a residential home,
due to the invoice lacking any information about the filter, or type and amount
of oil used, we requested from you the respites for the filter and oil provide to
[redacted] Auto.  Even though you have been
unable to provide our claims department with any respites showing purchase of
filters or oil we have agreed to move forward and approve the engine claim. Our
intention was not to delay the claims process but to receive the necessary
information to proceed. Thank you for your understanding.

Complaint: [redacted]
I am rejecting this response because: Regardless of whether this is a well known problem with these vehicles, your coverage states that it DOES cover pistons and piston rings. The consumption of oil and or compression problems is due to the pistons and rings failing. This is after the fact. How can you state in number 11. of what is not covered that we cover "x" and "y" but when the symptoms of "x" and "y" failing occur, we will not cover the repairs. Oil Consumption and compression loss did not cause the pistons and rings to fail. The pistons and rings failed which lead to oil consumption and compression issues. I paid $3500 for a A+ enhanced warranty that says it covers all internal lubricated parts of the motor only to have 2 claims denied 1 which specifically says it is covered. Pistons and Piston Rings. Completely Unacceptable.
Sincerely,
[redacted]

Mr. [redacted],   Regarding your claim on the 2011 Ford F-150 for the Electric Engine Control Module. As we advised you when we spoke to you on Feb 8th the PCM is not a covered part on your service contract. You stated that it was your belief that it should be covered because it is an...

“ignition module”. The PCM controls the ignition however it is not the “ignition module”. Our contracts are offered on a wide variety of years, makes, and models of vehicles. Because of this, there are some parts listed for coverage that are not present on every car the contract will apply to.   An ignition module is an electronic component used in ignition systems that use a distributor to provide spark to the engine.  On your vehicle, the vehicle computer now does all the controlling to provide spark to the engine.  Ignition control modules are not used, and the PCM does much more than just control the ignition.  Therefore, while part of the PCMs job is to control the ignition, it is not an ignition module, and will not be considered for coverage. The research into this claim has verified that the claim was denied correctly, therefore the claim will remain denied. We hope this helps you to better understand the reason for the denial.

[redacted],   Thank you for contacting Alpha Warranty Services. I have researched your service contract with Alpha Warranty Services and the only open claim I see was started on December 15, 2017 and approved for payment to your repair facility in the amount of $866.14 after your $100...

deductible on December 18, 2017. Please advise if there is another situation that requires our attention and we will be happy to research it for you. Tell us why here...

Complaint: [redacted]
I am rejecting this response because: This part failed, it controls the ignition of the spark plugs. I should be covered if parts fail. You can try to get out of every warranty you want, while we suffer here without money to feed our kids,  pay our mortgage, etc. I paid 2500 dollars for a scam. Clear and simple! 
Sincerely,
[redacted]

This concern was handled by phone with [redacted]. Alpha has agreed to honor this vehicle service contract and is currently processing an engine claim with the repair facility.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Sincerely,
[redacted]

Complaint: [redacted]
I am rejecting this response because:I never received a contract when I purchased the warranty, and I have tried to explain that multiple times. I received a one page pamphlet that is all, with no mention of needing a  prior authorization. There is apparently a breakdown in communication between the dealer selling your warrantee and the requirements of what paperwork the customer needs to receive. If you don't feel responsible for paying for the claim then I would be happy to accept a refund for the entire amount I paid for the warranty. Clearly the dealer who sold me the warranty did not do a good job but I don't feel like I should have to eat the cost of a repair that is covered under the warranty, just because you have found a loop hole.Respectfully,
Matthew P[redacted]

Dear Mr. P[redacted],
 
Thank you for contacting us in
regards to you concern. We have been attempting to contact you by phone to
resolve this concern, but have been unsuccessful. The contract does state under
“What To Do In Case Of a Breakdown”: To assure COVERAGE under the terms
of...

the CONTRACT, an authorization code must be obtained from the ADMINISTRATOR
prior to any repair. We have reviewed your claim and the situation, and we
would like to offer you $206.45 for the claim. Please contact us at
[redacted] so we can verify your address and information to issue the reimbursement.
We can also mail you a copy of your complete contact or you download one from
the coverage look up tool on alphawarranty.com Thank you for your understanding
and we appreciate our business.

Dear [redacted] or [redacted] [redacted],                 Thank you for the opportunity to address your concerns.  We would like to first off address the comment that “I have had my car repaired on 2 different occasions,...

both of which I thought would be covered after looking through my contract. They have paid a total of $26.38 on $1200 worth of repairs.” We have only ever had one opened claim for your contract. Your repair facility advised that there were 2 items that needed to be repaired, an ignition coil (which was eligible for coverage) and a power steering pressure hose (which is considered a maintenance item and is not eligible). This is the only claim ever call into us. The reason we paid $26.38 was because your contract has a $100 deductible, the parts and labor for the covered repair (the ignition coil) was $126.16. After the $100 deductible the remainder due was the $26.38 that we paid. If you would like to cancel your contract you can complete that process through your dealership where the car and contract were purchased.

Thank you for contacting Alpha Warranty.   At this point we have provided more than sufficient documentation to show that you were advised on two separate occasions that the cancelation would need to go through the dealership. In addition to that, you never did and still have not actually completed any cancelation paperwork (as per the guidelines of your contract). You did however continue to call requesting services and in fact went as far as to open a claim. Please reference the first response letter sent to you and the Revdex.com stating: “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. “ Had you made any actual attempt to move forward with the cancelation process we would be willing to take another look at this situation. Given the fact that you were advised on two occasions that the cancelation process (also as it is stated in the contract) needed to be completed through the dealer and no effort was made we are considering this matter resolved. No further action will be taken on the part of Alpha Warranty.

Thank you for contacting us in regards to your concern. When a vehicle service contact is included in the vehicle financing, the lienholder, Capital Auto Finance, provides the entire financed amount to the dealership, Roswell Mitsubishi, the dealer would then send Alpha the portion for the service...

contact. Unfortunately your contact was canceled at your request prior to Roswell Mitsubishi providing Alpha with the funding to activate your contact. Roswell Mitsubishi never provide Alpha with the funding for your contract, because we never received the funding we have no funds to refund to Capital Auto Finance. Roswell Mitsubishi will need to refund Capital Auto Finance the amount they received for the service contact included in your vehicle financing. We apologize for any inconvenience this may have caused and thank you for your understanding.

Mr. [redacted],   Our warranty does cover rings and pistons.  However, it only does so under certain conditions.  You are correct in stating that when a ring or piston fail, you will see oil consumption and/or loss of compression.  These are not the reasons for denying a claim.   They are symptoms of the failure.   We did not deny your claim because you had oil consumption and compression loss.  We denied it because the repair facility told us that the rings and pistons no longer sealed properly and should be replaced.  The statement in section 11 of “What is not covered” does not exclude all ring and piston failures.  Nor does section 11 deny all claims that have oil consumption or loss of compression.  It excludes only piston and ring failures related to wear.   What is covered by the contract is often termed “catastrophic failure”.  Pistons and rings can both break.  This is the type of failure that is covered by our contract. For example, if a ring were to break in half, or the ring land, which holds the ring in place on the piston, were to break off, you would see the same oil consumption and compression loss symptoms as when rings have worn out.  If the failure is a broken piece, we can see that the failure was spontaneous and catastrophic to the engine.  This type of failure is what the contract could cover.    When the pistons and rings have simply worn out and no longer seal well, this is not sudden.  It is a slow decent, where motor efficiency is slowly lost until it reaches a point that the ECU detects a problem with the motor and notifies the driver.  This type of wear can be caused by many things.  In the case of this type of Audi engine, most of these cases appear to be caused by the original engineering of the engine and it’s internal components.  Audi themselves recognized the inherent problem and extended their warranty.   As this failure is not catastrophic, but is instead a long slow loss of engine efficiency, this type of failure is not covered by our contracts.   When a repair facility calls us and describes a potential ring/piston failure, we have them get the customer’s authorization to take apart the motor and remove the pistons to show us how those rings and pistons failed.  It appears that this is not the process that was followed in your case. We apologize for our lack of thoroughness and it is something we are going rectify.  We have already contacted the repair facility who has your car.  We asked them to tell us what state of disassembly the motor is currently in.  The gentleman we spoke with informed us that he did not know.  He stated he would look in to it and call us back with that information.  If you will grant your authorization to the repair facility to do teardown, then, when your motor is disassembled far enough (meaning pistons have been removed), we will send out a 3rd party inspector to review the failure with your repair facility.   These inspectors are not employees of Alpha Warranty.  They are employed by a completely unassociated company and do these inspections for many warranty and service contract companies.  They have no vested interest in our company, and we rely on them to give us the exact truth of what they find so that we can accurately process claims and provide coverage when and where we have promised to do so.  The inspector will also provide us with a written report of the findings, and with numerous photos cataloging everything he reviews.   If it is shown to us that the failure was catastrophic or sudden, then your claim will be reviewed under that new light.  If the inspection only shows us that the engine was worn out, as the repair facility had previously told us it was, then the claim would continue to be denied because wear and tear is not a covered type of failure.  If the claim were to be denied, then you would be responsible to the repair facility to pay for the labor for that teardown time.   We apologize for any confusion about how the contract functions.  We strive to make them as clear as possible and understand that we are not always successful.   If you would like to pursue this claim, please give authorization to the repair facility to take the pistons out of your motor.  From there, we will gladly take another look at this.

Complaint: [redacted]
I am rejecting this response because:
Sincerely,
Ladarian D[redacted] If thats not a failure then what is when the tire fall off from bad rods or when the engine blows from leaking oil? Dont understand just a waste of money

[redacted],                 Thank you for contacting Alpha Warranty and providing us the opportunity to address your concerns. Below is a summary of the documentation we have regarding your claim. On April 5th 2017 you...

called in a claim indicating that there was a “ticking noise when starting”. On 4/6/2017 Larry Roesch Chrysler Dodge contacted us to provide the diagnosis.  They had made the determination that the issue was “broken bolts on both sides of the manifold” we let them know at that time that the bolts are not covered under the terms of this contract. On that same day, we spoke with you and provided the same information, that bolts are not listed for coverage under the terms of you contract, we also let you know that your contract is part specific.  if it is not specifically listed for coverage it will not be eligible.  Bolts are not listed for coverage; therefore, the claim was denied. On 4/17/2017 we received a request from the dealership that we readdress the claim; as a courtesy to the dealership we made the determination that we would aid you with this claim based on the diagnosis from your repair facility.  Attached is a copy of the exact diagnosis we received from the repair facility. As you can see there is no indication of failures with either the manifold itself or for the cylinder head, we were never given the opportunity to approve or deny these items as we were never told they were an issue. Specifically, what we were told needed repaired were the bolts and we were prepared to offer a payment in the amount of $879.66 after your $100.00 deductible to complete that repair. If the manifold and cylinder head are in fact damaged and in need of repair, we will need to start a new claim and address these failures accordingly. We are unable to address these issues because they did not go through the process needed to make the determination as to if they are eligible for coverage or not. The only way we can address these items is to have your repair facility contact us directly, start a claim and proceed with the claims process as per the terms of your contract.

Complaint: [redacted]
I am rejecting this response because:I have phone records that indicate my husband called your company on 9-26-2016 @ 3:23pm EST that lasted for 3 minutes and 37 seconds. In this phone call my husband informed Alpha Warranty Co of the blown motor, where the vehicle was towed to ( Walton's Auto Service) and that the vehicle was under warranty and you (Alpha Warranty Co.) gave the information to my husband to relay to the owner of Walton's Auto Service. 
Sincerely,
[redacted]