The Penn Warranty Corporation

Dear [redacted],     In response to [redacted]'s rejection our position remains the same as stated earlier.  Also, the contract does have a provision for emergency repairs as I stated in our response.                                                                                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:
Regards,
[redacted] I never said the car was taking and fixed and  still had issues ..I was driving the car when the car stop driving front or reverse ..the truck towed pick up the car and Took it to the mechanic. And you guys don't want to even pay the full amount for a used transmission..that's ridiculous ..I'm paying $405 for this car monthly plus insurance .. I been without my car for a month .. You guys taking a long time to approve and let the mechanic fix my car . It's costing me a lot of money paying for a rental car and cabs to commute to work . It's very difficult for me .. I need you guys to pay the full amount the mechanic is asking ..I have already spend a lot of money this whole month without my car and paying monthly .. Otherwise I'm going to take legal actions against your company . If you are a company that you said on you are on website ..I don't have the money to pay for anything you guys should be covering ,

Dear [redacted],                 In response [redacted]'s complaint, as I stated in my response to his earlier complaint # [redacted] the contract was canceled and our portion of the refund was sent to the lien...

holder [redacted] Credit Union and not directly to him.  The contract states any refund would go to the lien holder if one if provided on the contract.  This was done on September 28, 2015 when a check was sent to [redacted] Credit Union.                                     ...⇄ Gale *. M[redacted]

Dear [redacted],    The check was mailed to [redacted] on July 29, 2016 to her mailing address on the complaint.  If she does not receive by the end of next week, 8/12, please let me know and another check will be issued.                                                                                Gale *. M[redacted]

July 28, 2014
Dear [redacted]:I have received the above referenced complaint. Upon review of our file a claim was called in on June 12, 2014 by [redacted] pertaining to the transmission of [redacted]’s 2007 Ford [redacted]. Upon receiving the mileage we were instructed that the...

odometer was working intermittingly. Although this would cancel the contract and there would have been no coverage, we requested that it please be repaired and the claim reopened. Once this was done we were contacted on June 23, 2014 by [redacted] to reopen the claims. On that date, the adjuster spoke to the repair center and went over the claims procedures and teardown requirements for the repair. After several conversations of the proper tear down, we finally received the detailed estimate on July 14, 2014 and after review we authorized $1,147.50 on July 16, 2014 for a used transmission down as follows:$730.00 Used transmission/shipping $517.50 Labor as per the Mitchell Labor Guide of 6.9 hours@Contract rate of $75.00/hour. -$100.00 Per occurrence fee $1,147.50 Total Authorization (2140716012A)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.” As the owner of the vehicle [redacted] has the final decision as to how to have it repaired and the amount authorized could be used as an allowance toward any repair she may have chosen. She agreed to use the transmission we found and although it came with a 30 day warranty from the supplier, it is still covered through out the duration to the [redacted] contract. Further any delay in this matter was that of the owner supplying the necessary tear down and estimate that were requested the same day the claim was called in.The additional monies paid by [redacted] are not covered under the [redacted] contract. This would include the instrument cluster (odometer), fluid, exhaust gasket and additional labor charged. Upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATIONGale ** M[redacted] Corporate Attorney

September 26, 2014
Dear [redacted],I have received the above referenced complaint. From review of our file a claim was called in by ** Transmission Rebuilders pertaining to the transmission in [redacted]’s 2007 [redacted]. An adjuster was assigned to this matter at which time...

verified with the center customer/vehicle information, claims procedures, and tear down requirements. The vehicle was then inspected by an independent inspector to verify the shop’s diagnosis.The inspector noted all component damage is consistent with an internal failure of the 3-5-R wave plate, with subsequent damage to the 3-5-R clutches, steels and drum. Degree of damage and amount of debris indicates long term failure, and would be pre-existing based on contract sale date and mileage.Based on these findings the claim was then denied as to the failures being prior to contract since the vehicle was sold in this condition. The vehicle traveled only 778 miles and the transmission would not shift after only one week since its purchased. The Contract states under the heading WHAT IS NOT COVERED?, “Component failures which occur prior to the acceptance of the contract are not covered by this agreement.” Due to the unfortunate circumstance of the vehicle being purchased in this condition we will offer a refund of the contract price of $199.00. If acceptable please have [redacted] confirm in writing and the contract will be canceled and payment sent directly to his attention.Sincerely,THE PENN WARRANTY CORPORATIONGale M

June 10, 2016Dear [redacted]:I have received the above referenced complaint. Upon review of our files, on May 26, 2015, [redacted] purchased a 2009 [redacted] and at that time also purchased our 36 month Gold Contract. On May 27, 2016, [redacted] contacted our customer service department pertaining...

to repairs to his vehicle that took place on February 10, 2016 and April 15, 2016. We were never notified for these repairs and they were completed prior to our authorization.The contract agreement states the procedure to open a claim under Section IV. YOUR RESPONSIBILITIES B. Filing a Claim- If your Vehicle incurs a Breakdown, You must take the following steps to file a claim: “2. Take Your Vehicle to any licensed Repair Facility. Your Vehicle must be at a Repair Facility for a claim to be opened. If You need assistance in locating a Repair Facility, contact the Administrator at ###-###-####. 3. Provide Repair Facility with a copy of Your Contract and/or Your Contract Number. 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. “Also under section III WHAT THIS SERVICE CONTRACT DOES NOT COVER, 2. WHEN REPAIRS ARE PERFORMED WITHOUT THE ADMINISTRATOR’S PRIOR AUTORIZAITON.Again [redacted] never contacted us before any repairs took place. This is in violation of the contract agreement. We were denied the right to investigate the repairs to determine if they were necessary and if there would be coverage under the contract agreement. Upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATIONGale *. M[redacted]Corporate Attorney

I have received the above referenced complaint. Upon review of our file a claim was called in on April 29, 2016 by JLR Collision pertaining to Mr. [redacted]’s 2003 [redacted]. The adjuster spoke with the service center verifying vehicle information, claim procedures and tear down...

requirements from the owner. Upon completion to the tear down an inspection was then done by an independent inspector to verify the shop’s diagnosis. The inspector found that the vehicle had modifications of cold air intake tube, mass airflow sensor and oversized tires. The tires on the vehicle are front, 235-45-17 and rear, 315-35-17. The manufacturer’s requirements for the size of tires are 245-45-17. 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....." Had our corporation been notified of the alterations the contract would have been rejected. The contract was then cancelled and a refund is being forwarded to your attention. Further the inspector found that the damage to the #6 and #8 pistons are consistent with a foreign object entering the engine and continued operation. The damage to the timing chain guide occurred during teardown. Had the contract not been canceled due to the alterations, the claim would not have been covered under the contract agreement. As listed on service contract, to remedy any breakdown of the parts listed as covered, “the failures of any original or like replacement part covered by this Service Contract to perform its intended function(s) in normal service, including worn beyond service limits…” Failures as such did not occur. Thank you for you time and attention and if you have any questions please contact me. Sincerely, THE PENN WARRANTY CORPORATION Gale T. 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: I would have never purchased a used car without a warranty. I purchased warranty in good faith. What happened to car is something covered under our agreement. Your argument for not paying is not a valid one. Your resolution to this complaint is not acceptable.  I want a warranty on this car. I purchased the most expensive and comprehensive policy that was offered. When purchasing a used car, you can never be sure, how it has been taken care of and what will go wrong. Well. it happened to me. The car I purchased was not well taken care of by it's previous owners. Something terrible went wrong and it needed a new engine. Thank goodness I have a warranty in case something like this happens. Now please pay. I don't know how to explain it any different. 
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 Administratively Resolved]
 Complaint: [redacted]
I am rejecting this response because:
Once the water pump went out on the truck, the vehicle was stopped immediately and the vehicle was towed to my home.  I have pictures of my truck that are dated sitting on the side of the road.  I also have the individual who towed the vehicle home who is willing to testify or provide a statement that he in fact towed the vehicle to my home.  The truck was inoperable upon the water pump failure-at the first indication that the truck was not working properly(the power steering/brakes went out), I stopped the truck and turned off the engine. At that point, the hood was opened and I observed a broken water pump, belt, as well as a hole in the radiator.  It is common knowledge that you are unable to operate a vehicle when a water pump has went out as it will cause damage to your engine ( over heating ) etc.  
Per the contract, it also states that as the consumer, we are able to speak to the adjuster, customer service manager, etc-we have tried numerous  times to have this contact, but with no response.  We filed a dispute 9 days ago with this company and have a letter from a certified mechanic stating all damage that occurred was due to the water pump going out and that extended use WAS NOT POSSIBLE-we have not received a response from Penn Warranty Company.  There's no magic light on the dash of my truck ( or any car ) that tells you the water pump is going to fail. It just happens.  Please find attached a letter from [redacted] regarding their inspection from a CERTIFIED FACTORY TRAINED TECHNICIAN.  Per this technician, it states, "there is absolutely no evidence to warrant a statement that the customer had excessive usage of the vehicle after the time of failure."
We also received a phone call on June 13, 2014 at 3:00 a.m. from the [redacted] police department stating it looked like our vehicle had been broken into as the hood of the truck was up-[redacted] had not touched our vehicle after the Penn Warranty company adjuster came out to "inspect" our vehicle-the adjuster that Penn Warranty sent out failed to secure the hood on our pickup-during this time, storms came through the area with strong wind and rain therefore causing the un latched hood to pop open and exposed the motor of our vehicle as well as the air intake(which had been removed for the adjuster to inspect the vehicle.) At this time, we are unsure as to the possible damage caused by the negligence of the Penn Warranty adjuster.  I have the vm's from the [redacted] Police Department as well as I can get a report from the officer on duty.  
We purchased a warranty through this company that covers water pump, radiator, and fan clutch-we are expecting for this warranty company to honor this warranty and pay for these items.
Please keep in mind, we have been renting a vehicle for the last 2 1/2 weeks, this warranty issue has also resulted in lost wages for myself and my wife.
Regards,
[redacted]

December 2, 2014
Dear [redacted]:
I have received the complaint captioned above and have reviewed the file. On November 25, 2014, [redacted] called in a claim for [redacted]'s 2004 [redacted] stating that the rack and pinion (power steering gear), needed replacement. On that...

date, the adjuster spoke to the repair center and went over the claims procedures and teardown requirements for the repair and authorized $493.99 for the rack broken down as follows:$294.99 [redacted] rack and pinion $357.50 Labor (4.6 hours as pursuant to the [redacted] Labor Guide@ contract rate of $75.00/hour) -$100.00 Per occurrence fee$493.99 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 information for him to decide how to repair his vehicle. The owner of the vehicle has the final decision as to how to have it repaired and to choose different types of parts is certainly his 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 the owner may choose. As per supplying parts, the adjuster merely locates a supplier with available parts and in turn relays the information to the repair center who is the party responsible for making arrangements for shipment and availability of said part.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 he 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 parts we authorized are remanufactured could have been supplied and covered throughout the duration of the contract. Also, the vehicle was purchased used with over 107,700 miles on it at the time of failure and for us to authorize new parts when remanufactured are available would give the owner of the vehicle a greater benefit than originally purchased.Thank you for your time and attention and if you have any questions of comments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATION
                                        ...⇄ Gale *. M[redacted] Corporate Attorney

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

Dear Ms. [redacted],   In response to Mr. Billig's complaint please see the attached correspondence.                                                    Gale...

* M[redacted]  Dear Ms. [redacted]:I have received the complaint captioned above and have reviewed the file. OnNovember 27, 2017, [redacted] called in a claim for Mr. [redacted]'s 2008[redacted] pertaining to the transmission. On that date, the adjuster spoketo the repair center and went over the claims procedures and teardownrequirements for the repair and after investigation authorized $572.00 brokendown as follows:$330.00 Used transmission/shipping$342.00 Labor as per the All Data of 5.7 hours@Contract rate of $70.00/hour.-$100.00 Deductible$572.00 Total AuthorizationPlease note at the time of the authorization a break down of parts and laborwere given to the service center and they in turn would inform the owner of theinformation for them to decide how to repair their vehicle. As per supplying parts,the adjuster merely locates a supplier with available parts and in turn relays theinformation to the repair center that is the party responsible for makingarrangements for shipment and availability of said part. The owner of the vehiclehas the final decision as to how to have it repaired and to choose that of a rebuilttransmission is certainly their prerogative. However, this decision does not alterthe terms of the contract or the amount authorized for the repair and the amountauthorized could be used as an allowance toward any repair they choose. Theterms of the Contract regarding the repair of the vehicle states at the bottom ofpage 2: “At the administrator’s option, replacement parts used in coveredrepairs may include new, remanufactured, used or non-original equipmentmanufactured parts. All parts will conform to manufacturer’sspecifications.”Page 2The adjuster looks for the most cost effective repair for the vehicle. Only theowner of the vehicle can make the decision as to how their vehicle can berepaired. By choosing parts at a greater cost the owner would then beresponsible for the difference in costs charged by the repair center. Please notethat we have the right to investigate and authorize the claim for coverage, we donot just pay the service center what they want for parts and labor. Theauthorization listed above repairs the vehicle as pursuant to the contract terms.The used transmission found had 96,000 miles and the vehicle at the time ofrepair had over 126,000 miles. Also, the supplier had a 90 day warranty on thepart and it would have been covered throughout the duration of the servicecontract. Further the vehicle was purchased used and for us to authorize andpay for a rebuilt transmission would give you a greater benefit than originallypurchased.Thank you for your time and attention and if you have any questions ofcomments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATIONGale *. M[redacted]Corporate Attorney

Dear **. [redacted],
In response to [redacted]'s rejection, the claim is being reopened and authorized per the contract terms. Our position has been detailed in this matter and has not changed, however the claim is being authorized as a goodwill effort through your office. [redacted]

I have received the above referenced complaint. From review of our file a claim was called in on December 4, 2014 by [redacted] pertaining to noise and check engine light of Ms....

[redacted]’s 2009 [redacted]. On that date an adjuster was assigned to this matter, and verified with center vehicle/customer information, claims procedures, and tear down requirements. The shop stated that the engine needed to be replaced and the vehicle was then inspected by an independent inspector to verify the shop’s diagnosis and to determine a cause of failure. The inspector stated that the oil pan and valve cover are removed and the engine is still in the vehicle. At that level of teardown he could not confirm that any failures existed to the vehicle. The vehicle was then moved to Wayne Auto Repair and the claim was reopened on the January 6, 2015. The vehicle was inspected again in which the cylinder head and oil pan was removed. The inspector could not verify the full extent of the repair necessary. It was requested to be torn down further and this is where the claim now stands. Due to the unfortunate circumstance of the shop’s failure to proper diagnose the failure, we will offer the amount of $1,317.50. This would consist used engine for $550.00. The labor would take 9.5 hours as pursuant to the [redacted] 
[redacted] Guide, at the contract rate of $65/hour for a total labor of $617.50. 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. This would also include the car rental of $250.00 as per the maximum car rental stated in the contract agreement. Please not we are not accepting liability for this repair but making this offer to see if it can be amicably resolved through your agency. Thank you for your time and attention and if you have any questions or comments please do not hesitate to contact me. Sincerely, THE PENN WARRANTY CORPORATION

August 7, 2015 
Dear [redacted]:
 
I have received the complaint captioned above and have reviewed the file. In March of 2013 we authorized the repair for the steering rack on [redacted]’s, 2007 [redacted]. We were then contacted on July 21, 2015...

again pertaining to the steering rack and discovered that the earlier repair did not take place. The vehicle was not at the repair center and we requested it to be returned and the claim reopened for us to investigate the repairs. We were then contacted on July 29, 2015 by [redacted] of Merrillville and the vehicle was inspected by an independent inspector. After investigation we then authorized $504.15 for the steering rack broken down as follows:
 
$469.15 Rock Auto steering rack $135.00 Labor (1.8 hours as pursuant to the [redacted] Labor Guide@ contract rate of $75.00/hour) -$100.00 Per occurrence fee
$504.15 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 information for him to decide how to repair his vehicle. The owner of the vehicle has the final decision as to how to have it repaired and to choose different types of parts is certainly his 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 the owner may choose. As per supplying parts, the adjuster merely locates a supplier with available parts and in turn relays the information to the repair center that is the party responsible for making arrangements for shipment and availability of said part. 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. 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 parts we authorized are remanufactured could have been supplied and covered throughout the duration of the contract.
 
Thank you for your time and attention and if you have any questions of comments please do not hesitate to contact me.
 
Sincerely,
THE PENN WARRANTY CORPORATION
Gale M.
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:They told me that it was not covered and it is already fixed so I just either reemberest for the money I paid to get it fixed or the full amount that I paid for the warrenty
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 Administratively Resolved] Complaint: [redacted]I am rejecting this response because: f these current loopholes in your contractual agreements with no wiggle room that no one should ever nor should I sign up for you services period . Just because you paid a claim doesnt make it right nor when someone takes out a policy they should be held to never getting a refund should they wreck or sell a vehcle . ust a info there were other items we coild of claimed for service repairsbt felt that all you would do is reject them for whatever reason possible . This is in my opinion consumer fraud at the hghest level . If you look at the internet and blogs of your company I am surprised you still write policies with all the negative info out there on your company . Live and learn but never again ! Your company is very unethical period
 
[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: We would not ask for refund in the first place if they fix our car. When we bought the warranty they told us its full coverage for 2 years on engine of the car. But with in 2 months now we need to fix the car engine and they tell us they will not cover full cost. We DONT need any refund. And we know if any refund issue that will go to [redacted] because they will hold the lien.
So they should pay now to fix our car engine.
Regards,
[redacted]

February 12, 2014
Dear [redacted];
This letter is in response to your request for information regarding your vehicle ID# [redacted]. Unfortunately, all documentation is the property of The Penn Warranty Corporation. However, a summary of the claim is as...

follows:
A claim was called in on January 16, 2014 at 12:04 P.M.by [redacted] for “coolant level going down, fluid leaking”. After the repair center verified the failed components an independent inspection was ordered. The independent inspector found the following:
Inspection Findings
“Tech demonstrated the bottom head bolt between cylinder 5 and 6 is broken off in the block. The threads in the block for the top head bolt between cylinder 6 and 7 are pulled and coming loose from the block. There is visible residual thread material on the head bolt threads.
There is no sign of rust or corrosion. The head gaskets show slight discoloration between cylinders. The tops of the pistons are slightly coolant washed. There are no signs of external coolant leaks. No failure was demonstrated to the water pump.
Shop declined to clean heads to measure for warpage and tech states that he has no straight edge and the heads have to be sent out to be checked.
No other failure seen or demonstrated.
Cause Of Failure
What was verified at this time is that there is a broken head bolt and thread material pulling out of the block. The cause is not known, as the shop cannot demonstrate warpage to the cylinder heads. The head gaskets are breeched due to the broken bolt and pulled threads”.
At your request, I have enclosed all paperwork The Penn Warranty Corporation has received from [redacted] regarding this claim. Please note each document is date stamped upon receipt.
If you should have any further questions, please do not hesitate to contact me at ###-###-####.
Sincerely,
The Penn Warranty Corporation