Preferred Warranties Inc

Preferred Warranties Inc. (PWI) would like to respond to [redacted]’s complaint #[redacted].
[redacted] purchased the Plus coverage Vehicle Service Contract (VSC). When PLUS Coverage is selected on the front of this Agreement, only the parts listed in 1-21 are covered. Parts not listed are not...

covered.
Please see #5 in the VSG regarding diagnostic charges:
5) Fluids & filters required for covered repairs according to OEM specifi cations, excluding air conditioning refrigerant & FILTERS/ Reasonable diagnostic charges are covered up to $75.00 if it is determined to be a covered repair.
The diagnosis for [redacted]’s vehicle was failure of both solenoid valves and damaged vacuum hoses. Under the Plus coverage parts not listed are not covered. Therefore, solenoid valves and vacuum hoses are not listed items for coverage. According to the contract, diagnostic charges are not covered if the failed part is not a covered item.
Should [redacted] have any questions regarding this claim, please do not hesitate to contact our office at ###-###-####.

[A...

default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
Revdex.com:the dealer has contacted me with a resolution to this complaint which I have accepted
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. 
Regards,
[redacted]

Preferred Warranties Inc. (PWI) and the selling dealer, [redacted],  have been in contact with Mr. [redacted] about working together to find a resolution.

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]
 Complaint: [redacted]
I am rejecting this response because:As stated in my initial complaint this company was well aware of this type of failure and a misrepresentation was made to me that any type of failure would be covered. Claiming to cover all parts and then slipping in fine print covenants like this is a deceptive business practice and has cost me a lot of money. The company does not seem to care that not only did I pay them $1,500 for coverage that didn't cover my failure, but I also had to pay an additional $5,500 on TOP of that cost. So all in all I shelled out $7,000 for a $11,000 truck that I haven't even had for a year. It is clear this organization does not care for customer retention or reputation as they have made ZERO effort to work with me even though I was entirely lied to about my coverage.. 
Regards,
[redacted]

Preferred Warranties Inc. (PWI) would like to respond to **.
[redacted]’ complaint #[redacted].
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On 07/03/2014, PWI authorized $2300 for a used transmission for
**. [redacted]’ vehicle.  **. [redacted] was given
the option to ship in a used transmission or apply the $2300 to rebuild the
transmission.
 
On 07/07/2014, PWI offered a few shops where **. [redacted] could
take the vehicle but he elected to take it to the shop of his choice, [redacted]
[redacted]. The shop estimated $3100 to rebuild the transmission. **. [redacted] asked if
PWI would increase the amount we are applying to the transmission. The claims adjuster
explained to **. [redacted] that the cost to replace the engine would be $2300 and
that if wanted to have the transmission rebuilt, he would be responsible for the
difference.
 
On 07/10/14, **. [redacted] opted not to replace the engine and decided
to apply the $2300 towards repairing the transmission and paying the
difference.  
 
On 07/14/14, **. [redacted] called stating that his shop ran into
complications rebuilding the transmission and asked for more money to rebuild.
The adjuster explained to **. [redacted] that the $2300 was all PWI could authorize
for the repair.
.
Please refer to the contract, under WHAT IS COVERED BY THIS
AGREEMENT:
 
When making repairs, the repair center authorized by PWI
will use components of the same type and quality as those removed, which may
include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts
at the sole discretion of PWI.  The labor
required to repair or replace all parts covered under this Agreement will be
paid at the industry accepted flat rate as indicated in a current edition of
[redacted] or [redacted] labor guides, multiplied by the fair market hourly labor
rate.
 
The $2300 that PWI approved was
calculated on terms of replacing the transmission. PWI was able to find a
transmission at $1500 from a reputable supplier with a 30 day warranty with
fewer miles than **. [redacted]’ vehicle, 
$569.60 for labor according to the shop, $200 for fluids/filters/seals
and $75 for diagnostic time. This amount less the $100 deductible is how the
$2300 was calculated. **. [redacted] was given several options to repair his vehicle
he choose to rebuild the transmission. $2300 remains the most we are
contractually responsible for paying.
 
Should **. [redacted] have any questions regarding this claim,
please do not hesitate to contact our office at ###-###-####.

Preferred Warranties Inc. (PWI) would like to respond to [redacted]’s complaint #[redacted].
[redacted] purchased the Plus coverage Vehicle Service Contract (VSC). When PLUS Coverage is selected on the front of this...

Agreement, only the parts listed in 1-21 are covered. Parts not listed are not covered.
Please see #5 in the VSG regarding diagnostic charges:
5) Fluids & filters required for covered repairs according to OEM specifi cations, excluding air conditioning refrigerant & FILTERS/ Reasonable diagnostic charges are covered up to $75.00 if it is determined to be a covered repair.
The diagnosis for [redacted]’s vehicle was failure of both solenoid valves and damaged vacuum hoses. Under the Plus coverage parts not listed are not covered. Therefore, solenoid valves and vacuum hoses are not listed items for coverage. According to the contract, diagnostic charges are not covered if the failed part is not a covered item.
Should [redacted] have any questions regarding this claim, please do not hesitate to contact our office at ###-###-####.

[A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
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. 
Regards,
[redacted]

We are unable to provide the amount sent to Metro Auto Sales as each dealership charges different amounts for vehicle service contracts.Please know that the refund for [redacted] was sent to Metro on April 24th. If [redacted] has any questions or has not received the refund from the dealership, he may call us at [redacted].

Preferred Warranties Inc. has reviewed [redacted]’ complaint and contacted the repair facility, [redacted], that previously installed the engine in March of 2017. [redacted] from [redacted] indicated that they would have checked the PCV system for proper operation. If there was a blockage they would...

have cleaned the system.  [redacted]’ vehicle ran smoothly for several miles indicating the failure was not present at time of installation. The failure to [redacted]’ engine was not the faulty crankshaft.  The inspection report indicates water buildup within the PCV system – extreme cold temperatures caused the moisture to freeze blocking the PCV system resulting in excess pressure buildup forcing the seal out of the back of the engine.      Please know that Paragraph 8 on page four of the Service Contract states that the Service Contract does not cover any breakdown caused by lack of coolant or lubricant. In addition, the PCV system is an emissions component. Based on Paragraph 25 on page four of the Service Contract any repairs to emissions components are not covered. We appreciate your consideration and hope this clarifies the situation. Attached is a copy of the contract purchased for reference. Should [redacted] have any questions regarding this claim, please do not hesitate to contact our office at [redacted].

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]
 Complaint: [redacted]
I am rejecting this response because:The shops PWI has offered were presented after half of the work was already processed. Changing shops with still cause myself to incure additional cost. Also in the contract it does not state they can use a used part from a junk yard. It states rebuilt, remanufactured, or recycle. Recycle is another way of putting rebuilt. For a product to be recycled it must be taken from old and processed to create new. Therefore their offer for a used transmission with 3,000 miles less than mine is unacceptable. I refuse to have to deal with this issue again in 2 months when the transmission fails again at the same mileage. PWI is simple temporarily fixing the issue to get me through the warranty until it is out of warranty and tell me it is no longer covered. They are a warranty company and should honor their contract and their commitment. I have now been without my vehicle for what is going on 4 weeks. That is an entire month. I have paid my monthly loan amount for a vehicle I have not been able to drive. I also have been having to pay for a rental vehicle because their contract only covers rental cars for 3 days. I have gone above and beyond as well as the shops to work within my power to keep this transmission fix within their budget but there is no transmission shop that will be able to honor that low of a budget for this transmission. I have had a vehicle with a bad transmission before and it too was fixed at shops the PWI asked me to take it to. The transmission was rebuilt a total of 9 times while I owned that car and I had to pay for 3 full out of pocket. I am not going through this again. I ensured the transmission was being fixed properly to have a reliable car which is what I paid for and still am paying for. If I wanted this type of hassle I would have bought a cheaper car for cash and not dealt with PWI. They are simply trying to make money by altering their contracts to customers who do not know any better. I am even having them pay the shops directly so they can get the invoices of the actual work being performed and verify the amounts.If PWI wants to have the ability to use used parts in a vehicle without rebuilding them, they should state that in their contract when customers purchase the warranty. PWI could be having a transmission installed that is used and was damaged from a wreck, or had a failure just as mine did. They don't seem to care. Well this is my vehicle that I am pouring hard earned money into. Without this vehicle I am losing money. They need to just honor their contract and contact the shops I am dealing with and pay for the repairs and get the job completed.
Regards,
[redacted]

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
 Complaint: [redacted]
I am rejecting this response because: Can the warranty tell me the amount sent to [redacted] for the prorated refund from November 2016 until July 2017 minus the  $35 processing fee?
Regards,
[redacted]

Preferred
Warranties, Inc. (PWI) would like to respond to [redacted]’s complaint # [redacted]
on 2/3/15.
face="Times New Roman" size="3">
PWI sent an
independent inspector to inspect [redacted]’ vehicle. The inspector determined
that the low reverse clutches in [redacted]’s transmission were burnt and worn
due to the age of the vehicle.  There
were no other transmission component failures.
The independent inspector also determined that the right
front axle showed evidence of previous attempted removal. The bearing for the
axle that goes into the transfer case was rusted and seized to the axle and
output shaft of the transfer case and could not be separated. The inner CV
housing had deep hammer marks from attempted removal. There were no internal
failures in the transfer case.
Based on the inspection report, these findings were
determined pre-existing conditions.
Please refer to the contract under THIS
SERVICE CONTRACT DOES NOT COVER
#10.
Benefits for a breakdown which
existed prior to or was caused by a condition which existed prior to the
service contract purchase date.
I hope I have satisfactorily explained the reason why [redacted]’s claim is not covered.  I have
also attached a copy of the contract for further review. Should [redacted] need
any assistance in the future, please do not hesitate to contact us.

Preferred Warranties, Inc. (PWI) would like to respond to [redacted]’s complaint # [redacted] on 10/7/16. On 9/29/16, a claim was started for [redacted]’s vehicle for a complaint of a noise coming from the engine. [redacted] took the vehicle to [redacted]. The shop has not reported any findings...

other than a noise. No diagnostic trouble codes were found, no standard mechanical tests were preformed & no physical (tear down) evidence was provided by [redacted] to support that the vehicle required an engine replacement. Engine noises can be normal for time & miles, an indication of needing a repair of a single part or even complete replacement. Verification of failure is needed to make a proper diagnosis & a proper repair in order to correct a vehicle’s problem. In order for PWI to cover a listed component, the part needs to be worn beyond serviceable limits and listed for coverage. Please refer to the bottom of page two of the vehicle service contract (VSC). WHAT IS COVERED BY THIS AGREEMENTThis Agreement is not an insurance policy and, to be valid, must be purchased at the same time as the vehicle covered by this Agreement. Except as explained below, Administrator agrees to replace or repair parts listed in the Coverage described below if those parts are worn beyond serviceable limits. The diagnosis is determined by tear down authorized by the owner of the vehicle. If the diagnosis is a covered part, the tear down is covered under the contract. However, if the repair is not covered under the VSC, the tear down charges are the customer’s responsibility. Please refer to item # 32 on page four. THIS SERVICE CONTRACT DOES NOT COVER 32. For diagnosis charges, cost of disassembly or assembly if your repair is not covered or has been denied.   We understand [redacted]’s hesitation for further tear down but PWI needs to know the root cause of problem in order to correctly diagnose the issue.  PWI can not proceed further with this claim unless authorization is given by the customer for further tear down. [redacted] mentioned that PWI would not give him a refund. Based on the state disclosure in NC, He is eligible for a pro rated refund. Please see page nine of the VSC. North Carolina: The section called “REFUNDS” is deleted and replaced by the following: YOU may return this Agreement at any time after purchase and this Agreement will be void. If YOU return the Agreement, PWI shall refund to YOU or credit to YOUR account a pro rata refund less any claims paid on the Agreement and an administrative fee not to exceed ten percent (10%) of the amount of the pro rata refund. In the event of a refund, the lienholder if any will be named on the refund check as its interests appear. If [redacted] would like a refund, he should contact our office at ###-###-####.

*Dec. 19, 2014 – My 2005 Mazda Tribute (truck) began to show signs of a problem.
*Dec. 20, 2014 – I called Preferred Warranties Inc. (800-548-1121) and they referred me to Quality Auto, 150 Bloomfield Ave., Bloomfield, NJ (973-743-7400)
*Dec. 20, 2014 - Preferred Warranties Inc. had my truck towed to Quality Auto. Called Quality Auto and was told they would look at the truck and call me Monday (Dec. 22, 2014)
*Dec. 26, 2014 – Quality Auto called to say the transmission is “gone” and that I need new tires. I was told the reason the transmission died was because the truck had the wrong size tires and they would call Preferred Warranties Inc. to get approval for the repair.
*Dec. 29, 2014 – Per Quality Auto, Preferred Warranties Inc. finally approved the repair. Quality Auto then informed me that it wasn’t the transmission that needed replacement but instead a part called the transponder and that they could charge Preferred Warranties Inc. for the transmission and give me the new transponder and 4 new tires. I declined to be part of fraud and insisted the transaction be processed properly.
At least 15 phone calls were made to Quality Auto between 1/3/2015 and 1/9/2015 for information on the repair and when it would be ready and problems that occurred.
*Quality Auto insisted I needed new tires or my warranty would be void. New tires were purchase for this reason.
* Went to pick up the truck on 1/7/2015 after speaking with Quality Auto and being told the truck was ready (I was told they would do a test drive to be sure it was ok). When I arrived the truck wasn’t ready and an hour later was told the security system crashed because the battery was disconnected in order for them to work on the truck. They charged me an additional $350 to get new keys and reprogram the security system. The keyless entry does not work the same as before. The distance between the truck and the module is now about 25 feet shorter. On 2/10/2015 I spoke with Dave at Mazda, Lodi, in the repairs department, and he told me that first the security system would have cost $285 if no other repairs were being made and second that it doesn’t sound legitimate that the system crashed for the reason given.
*On Thursday, 1/8/2015 we picked up the truck after 5 pm and it immediately started to ‘chug’ when we were driving home and the engine light came on. Quality Auto said the truck had been taken for a test drive and was running great.
*Saturday, 1/10/2015 I brought the truck to a different mechanic because I didn’t trust Quality Auto with it again. They had held it for 20 days and it still wasn’t running right. I was told the tire size had nothing to do with the transponder, the air hose was disconnected and the plug to hold it in place broken. This was fixed and an appointment was made to check the truck for the next Saturday.
*Saturday, 1/17/2015 I was told the purge valve was broken and there was glue residue showing someone tried to glue it back together. I had the repair done without contacting Preferred Warrantys Inc. because of my experience with Quality Auto whom they had referred me to.
*Friday, 7/24/15 I contacted Preferred Warranties for another auto repair and was informed that the warranty only covered $189 of over $1,300 in repairs.
I would NEVER recomend this company to anyone.
I realize that Quality Auto did the damage, but I was referred to them by Preferred Warranties and when I was in contact with them this was something they wouldn't admit.

Preferred Warranties Inc. (PWI) has
been in contact with [redacted]’s selling dealer and we are working together to
resolve the issue.

We are responding to [redacted]'s follow-up regarding his
Vehicle Service Contract (VSC).  
 
By
**. [redacted] signing the Vehicle Service Contract, he accepted the terms of the
agreement on the contract and acknowledged that he has read the agreement.
 
Please
see the attached copy of the VSC signed by [redacted].
 
Respectfully,
 
Preferred Warranties, Inc.

[A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
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. 
Regards,
[redacted]

[A default letter is provided here which indicates your acceptance of the business's...

response.  If you wish, you may update it before sending it.]
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. 
Regards,
[redacted]

Review: A warranty was purchased on 3-23-2012 through [redacted] in [redacted], NC for the amount of $2,245. The warranty contract is J03502760. The warranty was not used and cancelled on 6-7-13. A check in the amount of $1,027 was sent to [redacted]'s. This amount was minus a $35 cancellation fee and the prorated amount for the months of warranty. The Preferred Warranty representatives [redacted] and [redacted] stated that the remaining amount of $1,218 would be refunded from the dealership. This action was in breach of my warranty contract. All refund amounts are required to be sent to the Lien Holder.Desired Settlement: Send $1,027 to the Lien Holder. Send additional amount of refund to the Lien Holder. $2,245 prorated for 5 years minus $35 does not equal $1,027. The Lien Holder is [redacted] Loan# [redacted]

Business

Response:

This is in response to the complaint filed by **. & **s. [redacted] received by Preferred Warranties, Inc. (PWI) on 06/21/2013. **. [redacted] purchased a 36 month/45,000 mile contract on 3/23/2012 for $2245.00 which he terminated 06/04/2013.

Review: On July 3 2013 I purchased a used car, 2007 Mitsubishi Endeavor from a used car dealership [redacted] . At the time of purchase I also purchased a Warranty from Preferred Warranties, Inc. for $1500.00. On Aug 27 the car began to hesitate while making right turns only. I contacted the warranty co Aug 27 at 5:15 pm. and they said to contact my garage and have them contact the warranty co prior to any repairs. On Aug 30 the vehicle began severely hesitating while driving. I took it immediately to the mechanic. He reported it was a transmission failure. The Warranty co was notified on Tues Sept 3. The warranty company contacted me stating that I would have to authorize my mechanic to open the transmission to see if the failure was due to an internal lubricated part failure. they informed me that if the failure was caused by a seal failure it would not be covered. On Sept 4. My mechanic contacted me and said it was definitely not a seal failure and was an internal failure. The warranty co. sent an inspector to look at the transmission on Friday Sept 6 2013. The final report stated there was a rock hard converter seal and a grove worn into the convertor hub which appears to be source of the leak and all clutches are burnt. The cause of failure was the failure of the convertor seal due to time and miles resulting in rapid fluid loss and internal trans damage. I immediately contacted my mechanic who again stood by his statement that it was not a seal failure. I again spoke with [redacted] from The warranty co who said he would contact my mechanic first thing Monday morning, Monday, Sept. 9. However what happened was [redacted] called me at 10:30 Monday morning and said his supervisor reviewed the report and states it is not covered and they will not be contacting my mechanic. I had them fax me the report which I then forwarded to my mechanic.

The Warranty co is stating this is a non covered item since it was a seal failure.... I had the car for less than 2 months when the failure occurred. My mechanic said it was not due to any fault of my own. The cost of this repair will be approx. $2000.00. I then contacted the dealer [redacted], [redacted] PA [redacted]. Who said they would contact the Warranty company because they believe it was mishandled by Preferred Warranties, Inc.Desired Settlement: I would like for this repair to be covered. My mechanic has stated this is not a failure that was caused by anything I could have done or prevented. I had possession of this vehicle for less than 60 days and drove less than 3000 miles.

Business

Response:

Preferred Warranties Inc. (PWI) would like to respond to Revdex.com Complaint #[redacted] of Kelly Ann Brady.