The Penn Warranty Corporation

November 2, 2017Dear [redacted]:I have received the above referenced complaint. From review of our file a claim was called in on September 28, 2017, by [redacted] pertaining to the fuel injectors of [redacted]‘s 2007 [redacted]. The adjuster spoke to the repair center verifying...

vehicle information, claims procedures and tear down requirements. Upon completion of tear down, an inspection was then ordered and completed by an independent inspector to verify the shop’s diagnosis of the repair. The inspector found that the vehicle had modifications of a 3” lift kit, oversized tires that are .9” taller and 1.7" wider than factory size and plates in the bed for a bed hitch. Based on these findings the contract was then canceled due to these alterations.The contract agreement states under V. GENERAL PROVISIONS, Number 7, "Cancellation By Us - We may cancel this Service Contract for any reason within ninety (90)days of the Service Contract Purchase Date or any time with just cause (unless otherwise as indicated by Your state, within the State Amendment section), including:- If there has been a material misrepresentation...; - If You have failed to maintain Your Vehicle as prescribed by the manufacturer....."A refund in the amount of $100.00 was processed and sent directly to [redacted]. Thank you for your time and attention and upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,Gale *. M[redacted]Corporate Attorney

[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 original expense to repair the ball joints is $752.52.  Attached is a copy of the original receipt ($618.72 + $9.30 +  $124.70) from [redacted].  To resolve the issue I will accept payment for the original claim expense of $752.52.  
Regards,
[redacted]

November 20, 2015Dear [redacted]:I have received the above referenced complaint. A claim was called in on November 2, 2015 by [redacted] Cookeville pertaining to the engine of [redacted]‘s 2010 [redacted]. We instructed the service center to obtain the owner’s permission to have it torn down and...

diagnosed to show the complete and necessary repair. We then received an estimate for replacement of the cylinder head and an inspection was then made by an independent inspector to verify the shop’s diagnosis.The inspector verified the driver’s side cam shaft is scored and seized in the cam bearings breaking all of the cam caps from lake of lube. The cam lobes are dry and show delimitation and scoring with the front and rear journals dry and have heavy metal transfer from lack of lubrication and continued operation. The cause of failure was a lake of lubrication to the left bank cylinder head with damage to the head and cam shaft and all cam bearing caps from continued operation.Based on these findings the claim was then denied as per the terms of the contract agreement. The contract specifically states under section III WHAT THIS SERVICE CONTRACT DOES NOT COVER, Paragraph #7, FOR ANY BREAKDOWN CAUSED BY CONTAMINATION, OVERHEATING, LACK OF COOLANT OR LUBRICANTS. It further states under number 15 of said section, “FOR ADDITIONAL LOSS OR DAMAGE WITH IS OCCASIONED BY YOU 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.”In addition, the service contract also states a responsibility of the service contract holder is to prevent further damage. This is noted under section IV. Your Responsibilities, number 1., Prevent Further, Damage, “You are responsible for observing Your Vehicle warning lights and gauges, and taking appropriate action immediately to prevent further damage. Failure to do so may result in the denial of the limitation of coverage.“Upon review we will offer $2,007.98 for this repair. This would consist of a used cylinder head for $200.00 and [redacted] gaskets & bolts for $257.98. The labor would take 22 hours as pursuant to the [redacted] Labor Guide, at the contract rate of $75/hour for a total labor of $1,650.00. These amounts minus the $100.00 per occurrence fee is the amount that we would have authorized had the failures to these parts were verified. Please not we are not accepting liability for this repair but making this offer to see if it can be amicably resolved through tour agency. .Thank you for your time and attention and if you have any questions or comments please do not hesitate to contact me.Sincerely,                                 �...⇄ Gale *. M[redacted]Corporate Attorney

July 22, 2016Dear [redacted],I have received the complaint captioned above and have reviewed the file. On February 16, 2016, a claim was called in by Stamper Auto Repair pertaining to the transmission of [redacted]'s 2005 [redacted]. On that date, the adjuster spoke to the repair center and...

went over the claims procedures and teardown requirements for the repair. After numerous conversations with the shop as to the proper teardown the vehicle was inspect twice to verify the shop's diagnosis. The only failures shown by the shop were that of the clutches and we then authorized $932.78 for a rebuild kit.Upon further review we will offer the additional amount of $567.22 for the claim limit of $1,500.00 as stated in the contract agreement. This is being offered to see if it can be amicably resolved and we are not accepting liability for the additional repair.Upon review if you have any questions or comments please do not hesitate to Contact me.Sincerely,Gale M.Corporate Attorney

[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]

August 7, 2017Dear [redacted].I have received the complaint captioned above and have reviewed the file. The Contract holders name on the Contract is [redacted]. On June 15, 2106, We were contacted by [redacted] to [redacted] pertaining to the engine of [redacted]'s 2009 [redacted]. On that date, the...

adjuster spoke to the repair center and went over the claims procedures and teardown requirements for the repair. The vehicle was inspected by an independent inspector to verify the shop's diagnosis. The inspector verified a broken timing chain guide. Did not see any witness marks on pistons or valves. Tech stated machine shop said all exhaust valves are bent and 2 intake valves are bent but was not shown at time of inspection. There were no lifters available for inspection. The only failure shown to the inspector was the timing chain guide. We then authorized $346.60 broken down as follows:   $33.60 OEM lower right timing chain guide   $413.00 Labor (5.9 hours as pursuant to All Data G) Shop's rate of $70.00/hour)  -$100.00 Per occurrence fee   $346.60 Total AuthorizationUnder the contract agreement we are responsible for covered components that are defective or worn beyond service limits. Upon inspection the only failure shown was that of the timing chain guide and was then authorized as per the contract terms. If there are additional repairs necessary please have [redacted] instruct the shop contact our claims department for investigation. As to the car rental, Our Corporation authorized 5.9 hours of labor as based upon All Data, which is an industry accepted labor guide. The Contract states "11. RENTAL CAR - Twenty five dollars ($25.00) per eight hours of authorized flat rate time to repair or replace a covered Component with a maximum of two hundred and fifty dollars ($250.00). Any delays caused by unavailability of parts, shipping of parts, repair facility scheduling, or any other delays do not qualify for rental reimbursement." Since the repair was authorized for 5.9 hours there is no car rental reimbursement available.Thank you for your time and attention and if you have any questions or comments please do not hesitate to contact me.Sincerely,                                            Gale *. M[redacted]

July 18, 2014Dear **. [redacted]:I have received the above referenced complaint. Upon review of our file a claim was called in on May 23, 2014 by [redacted] pertaining to the transmission of **. [redacted]’s 2003 [redacted]. On that date, the adjuster spoke to the repair center and...

went over the claims procedures and teardown requirements for the repair. After investigation we then authorized $831.60 for a used transmission repair. We were then contacted on July 7, 2014 by [redacted] again with transmission problems. Since they used the transmission we found the supplier sent in another one and we authorized $331.60 for the labor. The shop then contacted us stating the second transmission supplied has failed. We then contacted the customer on July 16, 2014 and instructed him that the supplier is sending in another transmission and he said ok. We then authorized $431.60 for the labor. Once this repair has taken place please have **. [redacted] send to my attention any out of pocket expense he may have had with this claim and it will be further reviewed.Upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATION

November 24, 2014Dear [redacted]:
I have received the above referenced complaint. Upon review of our file a claim was called in on November 17,2014 by [redacted] pertaining to the rear drive shaft of [redacted]’s 2008 [redacted]. On that date, the adjuster spoke to the repair...

center and went over the claims procedures and teardown requirements for the repair. We then authorized $165.00 broken down as follows:$175.00 Used drive shaft/shipping$90.00 Labor as per the [redacted] Labor Guide of 0.9 hours@Contract rate of $65.00/hou -$100.00 Per occurrence fee$165.00 Total Authorization ([redacted])
Please note at the time of the authorization a break down of parts and labor were given to the service center and they in turn would inform the owner of the vehicle of the information for them to decide how to have it repaired. Only the owner of the vehicle has the final decision as to how to have it repaired and to choose that of the shop’s part prices is certainly their prerogative. However, this decision does not alter the terms of the contract or the amount authorized for the repair and the amount authorized could be used as an allowance toward any repair they choose.
The terms of the Standard Contract regarding the repair of the vehicle states: “At the administrator’s option, replacement parts used in covered repairs may include new, remanufactured, used or non-original equipment manufactured parts. All parts will conform to manufacturer’s specifications.”The adjuster looks for the most cost-effective repair for the vehicle. Only the owner of the vehicle can make the decision as to how their vehicle can be repaired. By choosing parts at a greater cost the owner would then be responsible for the difference in costs charged by the repair center. Please note that we have the right to investigate and authorize the claim for coverage, we do not just pay the service center what they want for parts and labor. The authorization listed above repairs the vehicle as pursuant to the contract terms. The part we authorized has a 30 day warranty from the supplier and would be covered throughout the duration of our contract agreement.
After authorization we were then contacted on this matter in which the supplier request more funds for shipping. We then adjusted the claim for an additional $50.00 for a total authorization of $215.00 for this repair.
Upon review if you have any questions or comments please do not hesitate to contact me.
Sincerely,
THE PENN WARRANTY CORPORATIONGale M. Corporate Attorney

November 20, 2015
Dear [redacted]:
I have received the above referenced complaint. A claim was called in on November 2, 2015 by [redacted] Cookeville pertaining to the engine of [redacted]‘s 2010 [redacted]. We instructed the service center to obtain the owner’s permission to...

have it torn down and diagnosed to show the complete and necessary repair. We then received an estimate for replacement of the cylinder head and an inspection was then made by an independent inspector to verify the shop’s diagnosis.The inspector verified the driver’s side cam shaft is scored and seized in the cam bearings breaking all of the cam caps from lake of lube. The cam lobes are dry and show delimitation and scoring with the front and rear journals dry and have heavy metal transfer from lack of lubrication and continued operation. The cause of failure was a lake of lubrication to the left bank cylinder head with damage to the head and cam shaft and all cam bearing caps from continued operation.
Based on these findings the claim was then denied as per the terms of the contract agreement. The contract specifically states under section III WHAT THIS SERVICE CONTRACT DOES NOT COVER, Paragraph #7, FOR ANY BREAKDOWN CAUSED BY CONTAMINATION, OVERHEATING, LACK OF COOLANT OR LUBRICANTS. It further states under number 15 of said section, “FOR ADDITIONAL LOSS OR DAMAGE WITH IS OCCASIONED BY YOU 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.”
In addition, the service contract also states a responsibility of the service contract holder is to prevent further damage. This is noted under section IV. Your Responsibilities, number 1., Prevent Further, Damage, “You are responsible for observing Your Vehicle warning lights and gauges, and taking appropriate action immediately to prevent further damage. Failure to do so may result in the denial of the limitation of coverage.“
Upon review we will offer $2,007.98 for this repair. This would consist of a used cylinder head for $200.00 and [redacted] gaskets & bolts for $257.98. The labor would take 22 hours as pursuant to the [redacted] Labor Guide, at the contract rate of $75/hour for a total labor of $1,650.00. These amounts minus the $100.00 per occurrence fee is the amount that we would have authorized had the failures to these parts were verified. Please not we are not accepting liability for this repair but making this offer to see if it can be amicably resolved through tour agency. .
Thank you for your time and attention and if you have any questions or comments please do not hesitate to contact me.
Sincerely,
                                        ...⇄ Gale *. M[redacted]
Corporate Attorney

July 2, 2014Dear **. [redacted]:I have received the above referenced complaint. Upon review of our file a claim was called in on June 10, 2014 by [redacted] pertaining to the transmission of **. [redacted]’s 2008 [redacted]. On that date, the adjuster spoke to the repair center...

and went over the claims procedures and teardown requirements for the repair. Upon speaking with **. [redacted] he stated that the check engine light went on, took it to dealer ant they fixed it but still having issues with it going in reverse and forward. Based on this information we requested the repair invoices. Once they were received they were reviewed and we then authorized $1435.00 broken down as follows:$900.00 Used transmission/shipping $585.00 Labor as per the Mitchell Labor Guide of 7.8 hours @Contract rate of $75.00/hour.$50.00 Towing -$100.00 Per occurrence fee $1,435.00 Total Authorization ([redacted])Please note at the time of the authorization a break down of parts and labor were given to the service center and they in turn would inform the owner of the vehicle of the information for them to decide how to have it repaired. Only the owner of the vehicle has the final decision as to how to have it repaired and to choose that of the shop’s part prices is certainly their prerogative. However, this decision does not alter the terms of the contract or the amount authorized for the repair and the amount authorized could be used as an allowance toward any repair they choose.The terms of the Gold Contract regarding the repair of the vehicle states: “At the administrator’s option, replacement parts used in covered repairs may include new, remanufactured, used or non-original equipment manufactured parts. All parts will conform to manufacturer’s specifications.”The adjuster looks for the most cost-effective repair for the vehicle. Only the owner of the vehicle can make the decision as to how their vehicle can be repaired. By choosing parts at a greater cost the owner would then be responsible for the difference in costs charged by the repair center. Please note that we have the right to investigate and authorize the claim for coverage, we do not just pay the service center what they want for parts and labor. The authorization listed above repairs the vehicle as pursuant to the contract terms. The parts that were found and could have been shipped in were covered by the supplier as well as the duration of the contract agreement. Further any delay in this matter was that of the owner supplying the necessary invoices that were requested the same day the claim was called in.Upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATION

Dear [redacted],    There was no rejection attached to the response only the original complaint.                                   ...⇄ Gale ** M[redacted]

I have received the above referenced complaint. From review of our file a claim was called in on March 1, 2016, by [redacted] Auto Group pertaining to the engine of Ms. [redacted]’s 2007...

[redacted]. The adjuster spoke to the repair center verifying vehicle information, claims procedures and tear down requirements. Upon completion of tear down, an inspection was then ordered and completed by an independent inspector to verify the shop’s diagnosis of the repair. The inspector found that the vehicle had modifications of oversized tires. The tires on the vehicle are size 255-30-22 front, 335-30-22 rear. The manufacturer’s requirements for the size of tires are 245-45-19 front and 275-30-22 rear. Based on these findings the contract was then canceled due to these alterations. The contract agreement states under V. GENERAL PROVISIONS, Number 7, " Cancellation By Us - We may cancel this Service Contract for any reason within ninety (90)days of the Service Contract Purchase Date or any time with just cause (unless otherwise as indicated by Your state, within the State Amendment section), including :• If there has been a material misrepresentation…; • If You have failed to maintain Your Vehicle as prescribed by the manufacturer....." A refund in the amount of $2,436.87 is being processed and will be sent directly to Ms. [redacted] and the address she state in her complaint. Thank you for your time and attention and upon review if you have any questions or comments please do not hesitate to contact me. Sincerely, THE PENN WARRANTY CORPORATION Gale T. M[redacted] Corporate Attorney

Gale,
At no point will I be accepting your response on the simple fact that the company you represent sells a product that they do not stand by.Attached are the photos of the damage, if some "object" would have made its way into the motor it would not have specifically picked and chose the 2 specific cylinders that it did.
I'm not sure you understand the implication that for an object to make it's way into this motor it would have had to travel through a factory air intake with a brand new motorcraft filter, through the throttle body, through the upper intake manifold, and the down into the cylinder head. This is not an open plenum where something can simply get sucked in and thrown down. Also for it to cause damage to both #7 & #8 but miss every other cylinder makes absolutely no sense.In the picture you can see the damage from the piston that broke and caused the other damages.Let me know if you have any questions.
Regards,
[redacted]

Dear [redacted],    In response to [redacted]'s rejection our position remains the same as stated earlier.  I did reference the MD law however the vehicle and contract were purchased in PA and their state laws apply and there is no provision for coverage of diagnosis.  We do honor the contract in all states, however, we are not licensed to do business in every state.  The laws of the state where the contract is entered into apply and not those of the repair center.  [redacted] choose to purchase the vehicle and contract in PA and those laws will apply.  There is no coverage for diagnosis and no payments for these charges will be made by us.                                                                             Gale *. M[redacted]

July 14, 2016Dear [redacted]I have received the above referenced complaint date. From review of our file a claim was called in on September 16, 2014 by [redacted] pertaining to an oil change, serpentine belt & tensioner, hood latch lubricant, water pump and a/c control head of [redacted]...

[redacted]'s 2004 [redacted]. The only components covered under the contract agreement were the water pump and asc control head. We then authorized the amount the amount of $724.87 broken down as follows:$420.79 **Parts.Com a/c control head $616.67 Rock Auto water pump$19.20 Coolant $370.00 Labor of 3.7 hours as pursuant to the Mitchell Labor Guide at the Contract rate of $100/hour $100.00 Per occurrence fee $724.87 Total authorization The other items are non covered components under the contract agreement. The contract covers specific component listed as stated under Section :"WHAT THIS SERVICE CONTRACT COVERS Coverage - During the Service Contract Period We will pay a Repair Facility, or at Our option, reimburse You the Cost to remedy any Breakdown of the parts listed below, less Per Occurrence. Parts not listed are not covered by this Service Contract." It further states, “Only components listed in the above systems are covered by this Service Contract. No other components, other than those listed above under the “What This Service Contract Covers', are covered by this Service Contract.”The oil change, serpentine belt & tensioner, hood latch lubricant are not listed; therefore, they are non-covered components under the contract agreement.When we received the invoice the only repair that took place was the water pump and the above authorization was adjusted to $250.82 for the water pump repair only and this was sent to the service center. We were then contacted on September 23, 2014 again by [redacted] pertaining to the harmonic balancer, thermostat and housing. These are non covered components under the contract agreement and the claim was then closed. These are the only claims called in for this vehicle. We did pay for the water pump and we never received an invoice for the a/c control head repair.[redacted] did contact us in September 2014 pertaining to a refund. The contract was purchased on June 18, 2014 for 24 months. A pro rated refund was offered however it would be issued to the lien holder, [redacted] Bank as stated in the contract agreement. We were never contacted by the lien holder for a refund and the contract remained active until it expired on June 17, 2016. Therefore no refund will be offered. We have abided by the contract terms and did pay for a water pump repair. As to the a/c control head payment will be made for that item once an invoice has been received.Sincerely Gale *. M[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: Attached is a print out from the [redacted] Dealership showing the wheels that are on my vehicle.  The tires that are on my vehicle are an option for the wheels that are on my vehicle. As well as the 21' wheels are an option for my vehicle year, make and model from the [redacted] Dealership. I don't see how anyone can have tires on a rim that aren't the correct size, for that rim.  If that were the case, then my tires would not fit on the rim itself.  As for the rims/wheels; there are different size options available which means that one does not have to have one and only 'size' tire for that rim/wheel.  Regards,[redacted]

December 20, 2017Dear [redacted]:I have received the complaint captioned above and have reviewed the file. On November 22, 2017, we were contacted European Service of Washington pertaining to the ABS system of [redacted]’s 2006 [redacted]. On that date, the adjuster spoke to the repair center and went...

over the claims procedures and teardown requirements for the repair. The shop was stating the ABS accumulator was the necessary repair however could not provide a detailed diagnosis as to this particular failure. After several conversations we then had the shop agree that we will authorize the replacement of the accumulator however if this does not repair the vehicle we will void the claim and the shop will be responsible for the repair. We then authorized $926.74 for this repair.As for the refund request, the contract under III. General Provisions number 7., specifically states “How This Service Contract May Be Cancelled – including Refunds And Charges Cancellation By You – You may cancel this Service Contract at any time. However, You may not be eligible for a refund after thirty days (30) depending on state regulations. To cancel, You must submit a written request and return the Service Contract to the Administrator. If You cancel this Service Contract within thirty days (30) of the Service Contract Purchase Date, a 100% refund of the Service Contract Price will be made, less any claims paid. All refunds will be paid to the Lien holder, if any, otherwise to You.” The service contract was purchase on April 24, 2017, thus exceeding the allotted 30 days of provision III and denying a refund. The procedure of requesting a refund within the 30 days is specifically stated in the Provision, “To cancel, You must submit a written request and return the Service Contract to the Administrator.” This was not done within the first 30 days and therefore no refund would be granted. There are no general provisions providing a pro rated refund in the contract agreement.Thank you for your time and attention and if you have any questions or comments please do not hesitate to contact me.Sincerely,Gale M[redacted]Corporate Attoreny

[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 received the settlement offer from  the Penn warranty Corp and I have signed that I agree to their offer  and sent back a copy via email and fax and I do believe the offer
 satisfies my complaint thank you for your help.
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]

March 27, 2017Dear [redacted],I have received the above captioned complaint and have reviewed the filed. On March 7, 2017. [redacted] called in a claim for the transmission on [redacted]'s vehicle. We spoke with the service center and went over the claims procedure of tear down and...

possible inspection. The shop needs the customer's permission to have the vehicle torn down to show the necessary and proper repair.We then heard from [redacted] as to this procedure and it was repeated to her. This procedure is specifically stated in the Standard Contract, page 2, Section IV. YOUR RESPONSIBILITIES B. Filing a Claim- if your Vehicle incurs a Breakdown, You must take the following steps to file a claim: " 4. Prior Approval - Prior to any repair being made, have the Repair Facility to contact the Administrator with the estimate of repairs containing both parts and labor, and to obtain an authorization for the claim. The Administrator can be Contacted Monday through Friday, 9:00 a.m. to 5:00 p.m. at ###-###-####. Emergency repairs, done outside of working hours, may be submitted to Customer Service with a letter of explanation for payment consideration. If it is determined that a covered component has failed and the estimate for the repair is agreed upon by our adjuster, an authorization number will be issued by the Administrator. The amount authorized by the Administrator is the maximum amount that will be paid for repairs covered under the terms of this Contract. No repairs are to be made on Your Vehicle until an authorization number is issued by the Administrator. Any claim for repairs without prior authorization will not be covered. 5. Authorize Tear-Down - Authorize the Repair Facility to perform necessary diagnostic work and provide "teardown" authorization so that the Repair Facility can provide accurate diagnosis and estimate of repairs. 6. Allow the Administrator to inspect Your Vehicle prior to any repairs being made."This is where the claim now stands. The vehicle needs to be torn down to determine the necessary repair and if there is coverage under the contract agreement. This was repeated to [redacted] by our claims department. When the tear down takes place and an estimate is received by the service center the claim will then precede.Thank you for your time and attention.Sincerely, THE PENN WARRANTY CORPORATIONGale M.Corporate Attorney

February 24, 2017Dear [redacted],Dear [redacted],I have received and reviewed [redacted]’s rejection to our response. The documentation she provided was that of our sales brochure of our Elite Contract. This is clearly not a contract but sales materials. Although the Elite Contract covers the power steering pump, the contract that was purchased by [redacted] and sent to our corporation was that of our Standard Contract and this does not cover the power steering pump. I have attached to this correspondence a copy of the first page of [redacted]’s Standard Contract and a copy of the entire contract. We have authorized her claim as stated in my earlier reply as pursuant to the Standard Contract and, again, this contract doe not cover the power steering pump.As to the rack and pinion, the service center never told us it needed repairs and there was no “stall tactic” on our part. Please have [redacted] open a claim for this item and it will be investigated as per the contract.Upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,Gale M. Corporate Attorney