CNA National Warranty Corporation

Dear Dispute Resolution Consultant:

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CNA National Warranty Corporation (“CNAN”) appreciates the opportunity to respond to the above referenced Complaint. CNAN has looked into the concerns raised by Frank Fortner (“Customer”) regarding denial of coverage of the Customer’s damaged wheel under Extended Service Plan (“ESP”) #[redacted]
 
Coverage was initially denied because the damage was not due to a “road hazard”, as defined in the ESP. However, in its continued dedication to provide excellent customer service, upon receipt of the paid invoice, CNAN will authorize reimbursement of the wheel repair as if it were covered under the ESP.
 
If you have any questions, please contact me at [redacted]
 
 
Sincerely,
 
 
Kathy J[redacted]

Thank you for the opportunity to reply to the above-referenced complaint.

[redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) handling of her vehicle service contract. CNAN is the administrator of the vehicle service contract and recounts...

the information below in regard to Ms. [redacted] vehicle service contract.

When Ms. [redacted] purchased the X Series Vehicle Service Contract ([redacted]) (hereafter “VSC”), the selling dealership, [redacted], input the incorrect Expiration Mileage number on the VSC. When CNAN was remitted a copy of the VSC, CNAN corrected the error and sent Ms. [redacted] an endorsement notifying Ms. [redacted] of the correction.

Under Section 12, Contract Term, the VSC states: “The time  and mileage of Part I determines YOUR contract term. Coverages for NEW and NEAR-NEW VEHICLES begins on the CONTRACT SALE DATE and at zero (0) miles. The time YOU have selected is added to the CONTRACT SALE DATE.” A new/near new vehicle is defined under Section 11 as “[A]ny eligible VEHICLE  that, at the CONTRACT SALE DATE and CONTRACT SALE MILEAGE, has the FULL FACTORY WARRANTY and manufacturer’s extended warranty in force - including manufacturer’s extended warranties that must be properly transferred – and fits the following criteria:

Vehicle Type Minimum Full Factory Warranty

Domestic/Asian 3 Years/36,000 Miles European 2 years/24,000 Miles

Ms. [redacted] purchased a domestic vehicle that had the full factory warranty in force, a 2007 [redacted] with 30,926 miles, qualifying the vehicle as a Near-New Vehicle. Because Ms. [redacted] vehicle was a Near-New Vehicle, the Expiration Date of the VSC was 5 years from the Contract Sale Date, or at 85,000 miles whichever occurs first.

Lastly, under Section 12, Contract Changes, the VSC states “If any of the information provided in Part I is  omitted or does not conform to the  program guidelines, OUR ADMINISTRATOR may correct YOUR contract as necessary and in the course of business send to YOU at your address of record by first-class mail an endorsement with the necessary changes”

CNAN sent an endorsement correcting the error in regard to the expiration of mileage to Ms. [redacted] on December 7th 2009. A copy of the endorsement is included as a separate attachment to this response.

Should you have any questions or concerns, please do not hesitate to contact me at ([redacted]) [redacted] Ext. [redacted].

Sincerely,

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

Good morning,

 

I did not want my case closed.  I sent a copy of my warranty as requested so that you could contact CNA again.  When the contract was sold to me the mileage and time frame for the warranty discussed with the seller were the one shown on the contract.  The program pamphlet was given to me in an envelope and we did not go over its terms.  I don't think that any business should have the right to change the terms of a contract after it is in effect without written consent from the purchaser.  If the contract terms were not agreeable to CNA they should have refused payment until a new agreement was in place.  Or they should had issued me a partial reimbursement due to the coverage being reduced.  Please reopen my case and follow up with CNA.  Thanks.

Regards,

February 4th, 2014 

 

Ms. [redacted] 

Revdex.com [redacted] 

[redacted]  [redacted] 

 

Re: Complaint #[redacted] 

 

Dear Ms. [redacted]: 

 

Thank you for the...

opportunity to reply to the above-referenced complaint. 

 

Mr. [redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) disposition of his claim.  Specifically, Mr. [redacted] has requested that his claims be authorized by CNAN.  

 

Mr. [redacted] has stated that multiple repairs are required of his vehicle and these repairs have been denied by CNAN.  Upon our investigation, there were two repairs noted in our records: 

 

• Control head repair 

• Rear differential repair 

 

 The control head repair claim has been approved by CNAN.  The rear differential repair claim has been denied by CNAN because the vehicle was equipped with oversized tires.  By virtue of his contract numbered [redacted], under the section titled “What this service contract does not cover”, it states: 

 

“We will not pay for or cover the following: modifications (unless performed by the manufacturer of your vehicle or its representative and resulting in all covered parts remaining within normal, operating specifications: (8) breakdown that could be affected by, but not limited to, tires two or more sizes larger or smaller than manufacturer specifications, lift kits, aftermarket performance parts or systems.” 

 

The denied claim, as stated above, is a claim which is excluded from coverage under Mr.  

[redacted]’s  contract.  The vehicle is equipped with 305/65/R19 tires on 19 inch wheels.  These tires are significantly larger that the next two tires sizes relevant to this vehicle and therefore are excluded from coverage.  CNAN regrets that Mr. [redacted] is dissatisfied but asserts that all procedures and contractual duties were performed to the highest standards. 

 

Should you have any questions or concerns, please do not hesitate to contact our offices at [redacted].   

 

 

Sincerely, 

 

 

Compliance Department

Re:         Complaint #

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Dear Dispute Resolution Consultant:
 
    Thank you for the opportunity to reply to the above-referenced complaint. Ana [redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) determination of the claim made under the GAP Waiver ([redacted]).
 
    After receipt of the above-referenced complaint and review of the claims file, CNA National Warranty reached out directly to Ms. [redacted]. CNAN is providing Ms. [redacted] with an additional authorization of waiver on her loan in the requested amount of $344.58.   
    CNAN is committed to providing excellent customer service and we believe this addresses all Ms. [redacted]s concerns. If you have any additional questions please contact me at (480) 941-1626 or [redacted]
 
 
Sincerely,
 
 
Jessica H[redacted]
Compliance Attorney

Thank you for the opportunity to reply to the above-referenced complaint.[redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) administration of Mr.[redacted] claim made under the Maxcare Service Contract ([redacted]) (“[redacted]”). In...

particular, Mr. [redacted] is seeking clarification on the additional amounts Mr. [redacted] is being asked to pay by [redacted] (“Repairing Dealership”).  Mr. [redacted] first brought his vehicle into the Repairing Dealership upon experiencing a breakdown. Initially, Mr. [redacted] vehicle was brought into a [redacted], however because of the problems Mr. [redacted] was experiencing, [redacted] was unable to perform the teardown required and Mr. [redacted] then brought the vehicle into the Repairing Dealership to assess the breakdown and teardown the engine in order to expose the cause of failure.  When the vehicle arrived to the Repairing Dealership, the Repairing Dealership immediately requested CNAN for an authorization to replace the engine. Prior to authorizing a replacement engine, CNAN requires that the engine be torn down in order to accurately diagnose the cause of failure.   Under Your Responsibilities, the VSC states that Mr. [redacted] agree to “Authorize the Repair facility to perform the necessary diagnostic work and provide ‘teardown authorization’ so that the Repair Facility can provide an accurate diagnosis and estimate of repairs.” Further, that Mr. [redacted] “Allow the Administrator to examine Your Vehicle if the Administrator asks to do so.”  The Repairing Dealership tore down the engine and CNAN obtained an independent inspection on December 4, 2014. The independent inspection confirmed that the cause of failure was a failed water pump and warped heads on the engine caused by overheating. CNAN subsequently authorized a replacement engine to be supplied by the Repairing Dealership on December 8, 2014.  The authorization for the replacement engine included the following costs: towing the vehicle into the Repairing Dealership ($95.00), the engine and its reasonable and necessary costs to replace the engine including necessary labor ($4,883.74), rental charges incurred by Mr. [redacted] ($320.00), Repairing Dealerships diagnoses and testing ($185.00), and associated taxes ($172.60), less the deductible paid by Mr. [redacted] ($300), altogether totaling $5,483.74 that was authorized by CNAN. CNAN’s authorization to the Repairing Dealership included the breakdown of the authorized charges above, and was expressly provided to the Repairing Dealership on December 8, 2014.  The VSC promises “to pay reasonable and customary charges for Parts and Labor necessary to repair or replace the Parts covered. These charges shall not exceed manufacturer’s suggested retail price for Parts and labor allowances derived from the most current national recognized labor time publications.” [emphasis added]. According to the [redacted] Labor Guide, the current national recognized labor time publication, the necessary and reasonable labor time for replacement of the engine in Mr. [redacted] vehicle was a total of 21 hours. The 21 hours can be broken down by applying 17.3 hours for removal and replacement of the long block and 3.7 hours for diagnoses and tear down of the engine for inspection. CNAN authorized 21 hours of labor time for Mr. [redacted] claim, this was also reiterated to the Repairing Dealership on December 8, 2014.  Unfortunately, the Repairing Dealership charged Mr. [redacted] for 29 hours of labor time rather than the 21 hours that CNAN authorized pursuant to the current national recognized labor time publication, [redacted] Labor Guide. As a result, Mr. [redacted] was left with an additional charge of $696.16 by the Repairing Dealership.  Mr. [redacted] should direct the request for adjustments directly to the [redacted]. If you or Mr. [redacted] have any additional questions please do not hesitate to contact me directly at ###-###-####.

Thank you for the opportunity to reply to the above-referenced communication. CNA National Warranty Corporation (“CNAN”) is committed to customer satisfaction and looks forward to reviewing this file with your assistance. Ms. [redacted] purchased a CNAN vehicle service contract from [redacted]...

[redacted] in 2011. [redacted] was sold to [redacted] in 2013. Ms. [redacted] contacted CNAN to cancel her contract on 6/27/2014. On 7/3/2014 CNAN forwarded the proceeds of the cancellation to the [redacted] administrator, [redacted], for finalization of the cancellation and vehicle service contract proceeds inclusion of the dealership portion of the cancellation refund. [redacted] proceeded to cash this check on 7/22/2014. We have verified with Mr. [redacted], on 10/30/2014, upon our receipt of your letter, that he has forwarded the refund to [redacted], Ms. [redacted] lender. Under section 10 “Your Right to Cancel”, the following terms are part of Ms. [redacted] vehicle service contract: Refund Distribution: “If this contract is financed, the lienholder may be named as an additional or sole payee for any refund due.” “The SELLING DEALER, US or OUR ADMINISTRATOR will make a pro rata refund to YOU based upon the elapsed time or mileage, whichever is greater, from the CONTRACT SALE DATE and the CONTRACT SALE MILEAGE, less a twenty-five ($25) dollar processing fee.” By virtue of the terms of the contract, as stated above, Ms. [redacted] refund was delivered to [redacted] and the refund amount was calculated from 7/3/2014, less than three business days from the date of her request. The calculation amount was derived as follows: Payment amount of $3402.0075% refund due calculated by elapsed time = $2552.00 Addition of $25 processing fee Total refund amount = $2577.00 Please accept the above information as confirmation of the cancellation and the method by which the amount was derived. Should you have any questions or concerns, please do not hesitate to contact our office on ###-###-#### or [redacted]

Thank you for the opportunity to reply to the above-referenced complaint. CNA National Warranty Corporation ("CNAN") is dedicated to providing quality customer service and committed to customer satisfaction. CNAN resolves claims in accordance with the contract terms and...

provisions. [redacted] has expressed dissatisfaction with adjudication of the June 22, 2015 claim made under the Z-Series Vehicle Service Contract (Contract No. [redacted]) ("VSC") associated with the 2003 [redacted] 3S0Z ("Vehicle"). In particular, [redacted] is requesting that CNAN reconsider the determination made on his claim under the VSC and reimburse [redacted] the repair costs. In addition, [redacted] states that [redacted] provided the incorrect mileage to CNAN and requests that the mileage be corrected.For the reasons stated below, CNAN has determined [redacted]'s claim was processed correctly under the terms of the VSC and no additional reimbursement will be made. On June 22, 201S, the repair technician notified CNAN that the Vehicle was overheating due to incorrect coolant being placed into the Vehicle which caused the clogged radiator. At this time, CNAN denied the claim in accordance with the VSC, Section 7, Non-Covered Conditions, Paragraph 10:"10. Any BREAKDOWN caused by sludge buildup, contaminants, foreign objects; improper amount or type of fluids, lubricants, coolants or refrigerants; or lack of required maintenance as set forth in Section 8, "Your Responsibilities for Service and Maintenance."On June 23, 2015, [redacted] spoke with CNAN and in an effort to ease [redacted]'s concerns, CNAN authorized a third-party inspection of the Vehicle to verify the cause of the failure and to confirm the Vehicle's mileage. Per the inspection report provided on June 25, 201S, there was a red coolant liquid located within the cooling system and [redacted] indicates that only a green coolant should be used in this Vehicle. The red coolant mixed with the green coolant results in the sludge which clogs the radiator. The information provided in the inspection report coincides with the information provided by the repair technician and the VSC, Section 7, Non-Covered Conditions, Paragraph 10 (referenced above). Therefore, [redacted]'s claim was processed correctly under the VSC terms.With regard to the Vehicle's mileage provided by [redacted], the inspection report identified that the technician provided the trip odometer mileage rather than the Vehicle mileage. CNAN updated the claims record to reflect 46,049 miles. CNAN regrets that [redacted] is not satisfied with the adjudication of the June 22, 2015 claim. However, if he or you have any additional questions please do not hesitate to contact me directly at [redacted] or ###-###-####.

[redacted] Revdex.com [redacted] 

[redacted] Re: Complaint #[redacted] Dear [redacted]: Thank you for the opportunity to reply to the above-referenced complaint. [redacted] has...

requested, on 11/7/2014, that she be refunded certain rental car expenses directly to her debit card since she is no longer in a relationship with the co-owner of her vehicle/service contract. The reimbursement expenses must first be paid to the rental car facility, [redacted], and then the consumer will have their card refunded. We have called [redacted] and confirmed that they have received our check payment, for the relevant fees, on 11/10/2014 and [redacted] can now refund the consumer’s card accordingly. If [redacted] contacts her rental car facility the refund can now take place. Our contact at [redacted] is [redacted] and our check number for the refund is: 2621749. Should you have any questions or concerns, please do not hesitate to contact our offices at ([redacted] 

[redacted] Sincerely, Compliance Department

Terrible experience with this company and will do anything to not accept a claim. I bought an extended warranty with my 2013 Equinox. I took it to the shop recently for an ABS light, trac control light, and brake light. The shop called and said the hub ring was bad and could replace it for $800. I said it should be covered under my extended warranty. They call me back and said the warranty company wont cover the work. So I call CNA and the represenative told me that the dealership told them that there was rust on the hub and it directly led to the hub ring failure. So I called the dealership and the tech told me he absoluteley didnt say that it caused the failure all he said was there was minor surface rust. So I called the warranty company back and they said have the dealership call back and say that it wasnt rust and we will call a third party "investigator" and have them go take pictures and look at it then we will make a determination and it could take between 2-5days. I needed my car back this was the most ridiculous thing ive ever heard. First to lie and say the dealership told them something they didnt, the tech and his manager both said they would attest the rust wasnt the reason for failure. Then to recommend to have a third party investigate a wheel hub failure. This is a con of a warranty company. Absolutely looking to take your money and to lie and make up excuses so the dont have to pay for repairs. Sickening

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
We purchased the warranty; contract number [redacted], at the time of vehicle purchase on March 20, 2012 with 37,210 miles.  We paid over $1,500.00 for the warranty.  The warranty states it covers the radiator.  The radiator had to be replaced at 46,000 miles.  The warranty states that they expect us to have the vehicle serviced according to the service and maintenance schedule; which we did through the [redacted] dealership.  The warranty states we need to keep repair receipts and service receipts by the repair facility that serviced the vehicle, which we did through the [redacted] dealership.
The issue is [redacted] is stating "contaminated coolant type" was used which caused damaged to the radiator.  We did not put any fluids in the vehicle; we only took it to the [redacted] dealership since we owed the vehicle.  Either [redacted] put the incorrect fluid in and caused this damage or we purchased the vehicle with the incorrect fluid already in it.  Either way it should be covered; we kept to the agreement with scheduled services at a "professional" mechanic place ([redacted]) and kept receipts.  It sounds like a "scam" to say the radiator is covered but not if the wrong fluid is found when the only people who controlled the fluid was the dealership or prior to when we owned the vehicle and therefore it should be covered.  Why else do you buy a warranty?
We have all the receipts if necessary that show regular scheduled maintenance done by [redacted] on the vehicle.  

Regards,

Thank you for the opportunity to reply to the above-referenced complaint.[redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) administration of Ms. [redacted]’s claim made under the Maxcare Service Contract ([redacted]) (“VSC”) on May 26, 2015. In...

particular, Ms. [redacted] is requesting CNAN to reconsider the determination it made on her claim under the VSC and reimburse Ms. [redacted] for additional repairs. For the reasons stated hereafter, CNAN has determined Ms. [redacted]’s claim was processed correctly under the terms of the VSC and no additional reimbursement will be made.On March 30, 2015 CNAN received a call from Ms. [redacted] inquiring whether a hub bearing was a covered component under the VSC. During the call, Ms. [redacted] stated that the front right wheel bearing had gone out and it was causing additional problems such as shaking and grinding the rotor. CNAN informed Ms. [redacted] that she needed to have repair shop complete a diagnostic and report the results to CNAN. Later, on April 29, 2015 CNAN received another call from Ms. [redacted] asking about coverage for towing under the VSC. CNAN answered Ms. [redacted]’s question by indicating towing coverage is available for covered breakdowns under the VSC up to $100. CNAN did not receive any additional communication from Ms. [redacted] or a repair shop until the phone call on May 26, 2015.On May 26, 2015, CNAN received a call from R&S Complete Auto Repair (“Repairer”) and the Repairer indicated that Ms. [redacted]’s 2006 Lexus needed numerous repairs to the front right wheel, axle and braking system due to a failure to the front right wheel bearing. As stated in the VSC, under Your Responsibilities, the VSC states that you must “Allow the Administrator to examine Your Vehicle if the Administrator asks to do so.” At this time, CNAN ordered an independent inspection to determine the cause of failure of Ms. [redacted]’s vehicle. The independent inspector determined that the initial cause of failure was a failure to the front right wheel bearing. However, the independent inspector concluded that the continued operation of the vehicle, after the initial failure of the front right wheel bearing, resulted in subsequent damage to the front axle shaft, spindles, metal brake lines, and brake calipers.  Under What This Service Contract Does Not Cover, provision 21, the VSC states it does not cover any    “Loss or damage which is caused by Your or operator’s failure to use all reasonable precautions to protect the Vehicle from any further loss or damage after a Breakdown or failure has occurred or been indicated.” Ms. [redacted] continued to drive the vehicle after the initial failure of the wheel bearing which resulted in subsequent damage to the vehicle.  On May 29, 2015, CNAN authorized payment for replacement parts and labor necessary to replace the front right wheel bearing totaling $449.19, less the deductible due on the VSC of $300.00. CNAN has not provided any other authorization to Ms. [redacted] or the Repairer for any additional repairs made to Ms. [redacted]’s vehicle under the claim made on May 26, 2015 for the reasons stated above.  CNAN apologizes that Ms. [redacted] is not completely satisfied with the outcome, but if she, or you, have any additional questions please do not hesitate to contact me directly at ###-###-####.

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

I do not dispute the existence of the contract term limiting liability. I do, however, contend that the company and its sales agent, [redacted] of [redacted], materially misrepresented the terms of the contract,  to wit:
[redacted], as authorized sales agent for CNA National Warranty Inc. made representations that the contract was limited: (1) to the covered items listed in the marketing material; (2) to the duration of the contract as measured by (a) elapsed time, in this case 36 months; and (b) elapsed mileage, in this case 30,000  miles. No mention was made of a dollar limitation on the contract.

The first page of the contract is where the signatures are located. Within  1 1/2 inches above where the signatures are placed, the contract specifically states "Expiration of coverage is determined by the Expiration Date or Expiration Mileage shown above, whichever occurs first." No mention of a dollar limitation on the contract occurs until the very final page.

The marketing and sales support materials which CNA National Warranty Inc. produced or caused to be produced on its behalf and distributed to its authorized sales agents, of which [redacted] of [redacted] is included, either (a) makes no mention of the dollar limitation or (b) any such mention if  included is not conspicuous enough to prevent misleading consumers.
CNA National Warranty Inc. has attempted to disclaim statements made by [redacted] of [redacted] by suggesting that the dealership is not actually an agent working on behalf of CNA National Warranty. This is disingenuous as the contract is signed by the Dealership Salesperson, which clearly indicates that CNA National Warranty Inc has authorized [redacted] of [redacted] to act as its agent and bind CNA National Warranty under contract.

 

I further contend that because the language of the contract is internally inconsistent and self-contradictory, established rules of contract interpretation should apply. When a contract term conflicts with other contract terms, in deciding which term should govern, the term least favorable to the NON-DRAFTING PARTY is striken.  Thus, the attempted limitation of liability on behalf of CNA National Warranty Inc. should be  removed.

 

Lastly, I contend that under the totality of the circumstances, the contract drafted by CNA National Warranty Inc. is procedurally unconsciounable, due in no small part to CNA National Warranty's decision to place the language attempting to limit its dollar liability physically removed from the signature area and purposefully omitted conspicuous language alerting consumers to the existence of a dollar cap on their liability from the statement located above the signature line by which the Company purports to notify consumers of the manner in which the contract may expire. Regarding this notice, the Company has chosen language which presents to consumers an exclusive list of two ways in which the contract may expire. 

Regards,

Thank you for the opportunity to reply to the above referenced complaint. CNA National Warranty Corporation ("CNAN"), as the Administrator of the [redacted] Service Contract (Contract No. [redacted]), received your letter on July 21, 2014. This letter discusses the status of [redacted]'s...

pending claim with CNAN. Please note that upon our careful review, CNAN's Claims Department contacted [redacted] earlier today and authorized the engine repair associated with the pending claim.

Should you have any questions or concerns, please do not hesitate to contact us at ([redacted].

It was not possible for us to operate the vehicle once there was something wrong with regular operations.  It literally stopped being driveable.  There was no way possible for us to drive it!  We believe CNA is doing all it can to stonewall us to not pay for the operable repairs....

 We did not buy this vehicle expecting to, after two months, have to have a new engine.  We obviously would not have bought it, and we certainly would not have purchased a warranty with a company that has had nothing but complaints.  All we desire is for them to do the right thing.  There is no way their inspector could make such a finding that it was driven after it was damaged.  We believe the warranty company is making excuses to adapt to policies under their stated warranty and do not want to fix the vehicle.  What are we supposed to do with an undriveable vehicle??  You have stuck us for over 3 months now without a vehicle.  You really do not care and do not want to satisfy customers.

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

They are covering only a fraction of the labor and work that there is over $1800 in charges which they are not covering. Since they refused to put the engine in two times previously after I had paid $600 in total for the deductibles. If they had approved for the engine in the first place I wouldn't be in this position. On top of everything the approved the last claim and when the engine seized they decided to deny it since the car wasn't fixed. Which was their fault for not approving the engine replacement. How can you expect to fix a broken arm with a bandaid. Your not going to fix the problem with the engine when you just fix the symptom not the engine.  So since they denied the last claim and the approval for the engine they are leaving me a huge cost in which the warranty said they would cover in the first place. They keep changing what they decided to cover and how much they are willing to pay. They are in breach of the contract in which I paid so much for before when I purchased the car. They continuously lie to me and is a horrible misrepresentation great customer service. 

Regards,

Re:         Complaint #[redacted]
 
Dear Dispute Resolution Consultant:
 
Thank you for the opportunity to reply to the above-referenced complaint. [redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) processing of a claim made under a GAP Waiver Addendum.
 
After speaking directly with Ms. [redacted] via phone, it was discovered that Ms. [redacted] had not yet initiated her claim with CNAN. We immediately put Ms. [redacted] in contact with the appropriate CNAN employees to facilitate the initiation and processing of her GAP Waiver. Ms. [redacted]’s claim has been initiated (Claim No. [redacted]) and will be processed once all remaining required documents have been received.
 
We believe this addresses Ms. [redacted]’s concerns at this time, and should she or you have any questions, please contact me at [redacted] or ###-###-####.  
Sincerely,
 
 
Jessica H[redacted]
Compliance Attorney

Review: tried to get some warranty work done back in December 2013. A mechanic from dealership said there was a crack in radiator cause by a rock....got denied, But I was not told about this crack because the original work I was trying to get done was transmission work which was approved.,...fast forward 2 months I notice alot of water leaking, so I called CNA to get a claim going they said "oh we are well aware of this hole in your radiator. It was called in by the mechanic back in December and we declined it.". The very next day it breaks down and overheats I tow it to MY mechanic and he saids there is no hole or leak from radiator that it is from the housing of water pump, He calls this claim in to CNA....DENIED!..WAS TOLD THAT I DROVE 3000 MILES since the issue was first found in DECEMBER 2013. Remember I was not told nothing back in December so How could I have known?..Then CNA says Well there is no need to even have this conversation ANYWAY, your 600 miles over on your warranty, you dont have a warranty no more. WELL I DID 3000 MILES AGO WHEN MY CAR WAS MISDIAQUNOISED! AND I WAS NOT TOLD ABOUT THIS LEAK. My car is still in shop I have rented a rental car for work and I paid towing. CNA has not done nothing for me. Please get them to reverse their decission.Desired Settlement: reverse their decission , please. The customer is being railroad here!

Business

Response:

Thank you for the opportunity to reply to the above-referenced complaint.

Mr. [redacted] has expressed dissatisfaction with CNA National Warranty Corporation's ("CNAN") disposition of his claims. Mr. [redacted]'s first claim was submitted to CNAN on December 28, 2013. This claim was related to transmission repairs. While speaking with the technician, CNAN was notified that the service technician also found that the radiator was leaking coolant due to physical damage. As indicated in Section 1, Agreement Between You and Us, of Mr. [redacted]'s Vehicle Service Contract (Contract No. [redacted]), the service contract coverage includes repairs or replacements of:

.....Covered Parts that fail due to a Mechanical Breakdown, less Your Deductible."

Based on the information provided by the service technician and the terms provided in the Vehicle Service Contract, CNAN denied the radiator repair claim.

On March 14, 2014, Mr. [redacted] filed a claim related to the vehicle overheating due to the radiator and thermostat housing. At this point, CNAN noted that Mr. [redacted]'s Vehicle Service Contract had expired due to mileage. Pursuant to the information provided to CNAN, the vehicle's mileage at the time of this claim was 77,781. As indicated in the Vehicle Service Contract Expiration Mileage, the Vehicle Service Contract expired at 77,199 miles.

However, in an effort to address Mr. [redacted]'s concerns related to the damage associated with the radiator, CNAN authorized a third party inspection to be completed on the vehicle. The third party inspection found that the radiator component's damage was due to a mechanical breakdown. Based upon this finding, CNAN has approved the radiator and thermostat housing repairs. CNAN has authorized payment for $977.95. Please note that Mr. [redacted] will be responsible for the $100 deductible. Furthermore, as noted above, this Vehicle Service Contract has expired and no further claims can be processed.

Should you have any questions or concerns, please do not hesitate to contact our offices via telephone at ([redacted] or via email at [redacted].

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me. I will wait until for the business to perform this action and, if it does, will consider this complaint resolved.

Regards,

Yes, CNA has reversed there decission on my claim. They have made good on thier customer service failure. The [redacted]c mechanic and CNA had a conversation back in December but nobody failed to tell me about this inquiry or upsale me on this radiator leakage so yes I drove my truck once the work was done. I was not given a reciept explaining what was done to my truck once I picked it up. I WAS NOT EVEN CHARGED THE 100.00 LIKE I WAS SUPPOSE TO PAY EITHER. So I was completley in the dark on this leakage. But note: The issue was not the radiator like first called in , it was a crack in the themostat housing that caused this. I feel if it properly diaqnoised to begin with we would not even be were we are at now. Yes I know my warranty has expired now , but at the time of these issues I did have a warranty and I feel it should have been covered with out all this fusing! CNA has made me happy and I even want to renew my contract with them if they offer me this option. I just feel I was lost in the mix between the dealership , CNA and Chevrolet dealership and everyone forgot about the customer and His concerns. CNA is a good company and I dont to leave a bad empression about them. I recently went back to the [redacted] dealership to pay my 100.00 and get them to redo there work because the Harmonic Balance was not put in right . The truck ate 3 new belts since it was installed and they stripped the bolts. I am Happy now and I hope I can reistablish a working relationship with CNA again in the future if they will have me....re new my contract. I want to Thank the [redacted] for thier assistance as well on this matter.

Review: In Jan. of 2014 I puchached a 2006 ford explorer from [redacted] in [redacted], and purchased a maxcare plan that was executed through CNA I had several issues with the vehicle but most were resolved at the [redacted] location on [redacted] in [redacted]. In October my engine failed and [redacted] sent it to [redacted] for an engine replacement. The dealership and I both repeatedly spoke with CNA about what was cover during the repair process, that took 2 months due to CNA's continuing requests of unnecessary work, I was told multiple times by different CNA reps. that if the claim was approved that all I would have to pay is my deductible of $300. When the work was finally finished I had an extra $700 charge for labor CNA refused to pay. They claimed that only 21 hours of labor was approved not the 29 it actually took. This was never commuincated with me or the dealer ship, in addition to the fact that the extra labor was for additional needed diagnostic testing on an engine that [redacted] and [redacted] said need to be replaced. Also the delays and additonal tear down requested cost an extra $2000, according to the Assistant Service Manager [redacted] at [redacted].Desired Settlement: I would like to be refuned my $700 dollars I paid over my deductible.

Business

Response:

Thank you for the opportunity to reply to the above-referenced complaint.[redacted] has expressed dissatisfaction with CNA National Warranty Corporation’s (“CNAN”) administration of Mr.[redacted] claim made under the Maxcare Service Contract ([redacted]) (“[redacted]”). In particular, Mr. [redacted] is seeking clarification on the additional amounts Mr. [redacted] is being asked to pay by [redacted] (“Repairing Dealership”). Mr. [redacted] first brought his vehicle into the Repairing Dealership upon experiencing a breakdown. Initially, Mr. [redacted] vehicle was brought into a [redacted], however because of the problems Mr. [redacted] was experiencing, [redacted] was unable to perform the teardown required and Mr. [redacted] then brought the vehicle into the Repairing Dealership to assess the breakdown and teardown the engine in order to expose the cause of failure. When the vehicle arrived to the Repairing Dealership, the Repairing Dealership immediately requested CNAN for an authorization to replace the engine. Prior to authorizing a replacement engine, CNAN requires that the engine be torn down in order to accurately diagnose the cause of failure. Under Your Responsibilities, the VSC states that Mr. [redacted] agree to “Authorize the Repair facility to perform the necessary diagnostic work and provide ‘teardown authorization’ so that the Repair Facility can provide an accurate diagnosis and estimate of repairs.” Further, that Mr. [redacted] “Allow the Administrator to examine Your Vehicle if the Administrator asks to do so.” The Repairing Dealership tore down the engine and CNAN obtained an independent inspection on December 4, 2014. The independent inspection confirmed that the cause of failure was a failed water pump and warped heads on the engine caused by overheating. CNAN subsequently authorized a replacement engine to be supplied by the Repairing Dealership on December 8, 2014. The authorization for the replacement engine included the following costs: towing the vehicle into the Repairing Dealership ($95.00), the engine and its reasonable and necessary costs to replace the engine including necessary labor ($4,883.74), rental charges incurred by Mr. [redacted] ($320.00), Repairing Dealerships diagnoses and testing ($185.00), and associated taxes ($172.60), less the deductible paid by Mr. [redacted] ($300), altogether totaling $5,483.74 that was authorized by CNAN. CNAN’s authorization to the Repairing Dealership included the breakdown of the authorized charges above, and was expressly provided to the Repairing Dealership on December 8, 2014. The VSC promises “to pay reasonable and customary charges for Parts and Labor necessary to repair or replace the Parts covered. These charges shall not exceed manufacturer’s suggested retail price for Parts and labor allowances derived from the most current national recognized labor time publications.” [emphasis added]. According to the [redacted] Labor Guide, the current national recognized labor time publication, the necessary and reasonable labor time for replacement of the engine in Mr. [redacted] vehicle was a total of 21 hours. The 21 hours can be broken down by applying 17.3 hours for removal and replacement of the long block and 3.7 hours for diagnoses and tear down of the engine for inspection. CNAN authorized 21 hours of labor time for Mr. [redacted] claim, this was also reiterated to the Repairing Dealership on December 8, 2014. Unfortunately, the Repairing Dealership charged Mr. [redacted] for 29 hours of labor time rather than the 21 hours that CNAN authorized pursuant to the current national recognized labor time publication, [redacted] Labor Guide. As a result, Mr. [redacted] was left with an additional charge of $696.16 by the Repairing Dealership. Mr. [redacted] should direct the request for adjustments directly to the [redacted]. If you or Mr. [redacted] have any additional questions please do not hesitate to contact me directly at ###-###-####.

Review: I purchased A warranty coverage insurance from CNA thru Kingdom Cheverolet in Chicago. I started having Transmission trouble June 29 ,2013. I still had the powertrain warranty on my 2010 Dodge Caliber. When taking it to a dodge dealer here for repairs ,I was told the powertrain warranty could not cover the work because the original transmission was not in the car. So I called CNA for them to pay for the repairs . They told me as long as I had the 100,000 mile warranty they won't cover me for repairs. I feel I have no recourse in getting my car repaired and this company is a sham. I paid $2000 for this warranty with no results.Desired Settlement: Pay for the needed repairs to my transmission.

Business

Response:

July 25, 2013

Re: Complaint ID: [redacted]

Customer: [redacted]

Contract Number: [redacted]

To Whom It May Concern:

Thank you for your letter regarding Revdex.com complaint number [redacted]. CNA National Warranty Corporation, (“CNAN”) is dedicated to customer satisfaction and welcomes the opportunity to address the concerns regarding this matter.

As noted in Ms. [redacted]’ letter, the vehicle is still under the manufacturer’s power train warranty. The Contract purchased by Mr. [redacted]’ clearly defines conditions that are not covered. Pursuant to Section 7 “Non-Covered Conditions,” subsection 7, the Contract does not cover “Any Breakdown covered by any limited warranty, manufacturer’s warranty, recalls, campaigns, repairer’s guarantee, road club or any other guarantee, warranty or insurance policy.” Additionally, as Ms. [redacted] notes, the repair facility stated “the powertrain warranty could not cover the work because the original transmission was not in the car”. By virtue of Section 6 Number 18 “if the manufacturer has voided or rescinded the factory warranty” this is considered a non-covered condition. If the transmission failed and was replaced under the manufacturer’s warranty they would accordingly need to repair a second time since it remains under the warranty. If in the alternative they denied the repair because their warranty was voided or rescinded then the transmission failure would be considered a non-covered condition under the warranty of CNAN as well.

After careful review of the complaint we regret that Ms. [redacted] is dissatisfied but we assert that all procedures and contractual duties were performed to the highest standards by CNAN. A further discussion with the manufacturer regarding their warranty of the transmission may clarify their duties and obligations.

Should you have any questions or concerns, please do not hesitate to contact me at (480) [redacted] extension [redacted].

Sincerely,

[redacted]

Compliance Analyst

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me. I will wait until for the business to perform this action and, if it does, will consider this complaint resolved.

Regards,

I do not like the decision .How ever I feel there is nothing else I can do. I bought this car in good faith from [redacted]. Chicago ,Il. Along with this bogus warranty contract [redacted] dupes you in to buying. I am a senior citizen and feel I have been taken advantage of. This $2000.00 was added to my financing contract. It is worthless.