The Penn Warranty Corporation

November 25, 2015
Dear [redacted]:I have received the above referenced complaint. Upon review of our files, on January 3, 2015, [redacted] purchased a 2004 [redacted] and at that time also purchased our 3month/4,000 Miles Extended Limit Contract. The only contact we ever had...

pertaining to [redacted]’s vehicle was on April 9, 2015 when he sent a letter to our customer service department pertaining to repairs to his vehicle that already had been completed. He was then advised of our claims procedure and was unable to be reimbursed since the repairs 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.
[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,
Gale *. M[redacted]
Corporate Attorney

Dear **. [redacted],
    In response to **. [redacted]'s rejection our position remains the same a stated earlier.  We did authorize the repair per the contract terms for a used transmission.  It seems the shop want to rebuild the transmissoin at a much grearter price.  Again my earlier correspondence details our position and we do not just pay what the shop wants as requested by **. [redacted]. 
                            [redacted]

March 14, 2016
Dear [redacted],
I have received [redacted]’s complaint and have reviewed her file. The service contract she purchased is owned by [redacted] Insurance Company from the state of Florida. We are the administrator only and not responsible for any payments. We did receive a...

request for a refund due to the vehicle being totaled. Although [redacted] is under not legal obligation to provide a pro rated refund one was sent to the lien holder on the vehicle, [redacted]. This amount was $402.75, which included a 10% cancellation, and was sent on March 2, 2016. The contract was for 36 months and had 20 months remaining when the vehicle became totaled. The contract price was $2,000.00 and [redacted] received $805.50. The remaining balance of $1,194.50 was retained by the selling dealer, Starmax Finance Inc and they are responsible for any additional pro rated refund of $597.25. A correspondence was sent to them detailing the refund and to make payments to the lien holder.As to the authorized claim that has been canceled and had no effect on the amount that was pro rated and paid. 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: I think its a crock of bull that they due not even have a grace period, no  less that they wouldnot even exceptto contnue with our payment. they had no problemtaking the payment every month. for nothing, and of course in 2 years everyones car mileagegoes up. who's does not. we were not asking to write a new policy just conitinue the one we had, I just had to give them the number to the same account the bank change to chip card. nice way . and easy way of ripping off ur consumer. I can imagine how much money u have made off people to which after 2 years there mileage had gone up and according to u ,u just delete there policy. very impressive rip-off. I will be telling every dealership /carsalesman on a blog what this company does, and to either let the customer know what they do . or not sell there insurance!
Regards,
[redacted]

Dear [redacted],
     In response to [redacted]'s rejection,  on September 28, 2015 a check was mailed to [redacted] Credit Union.  It was returned by them since it did not have their account number on it.  We then contacted them, obtained the account number,  and the corrected check was mailed to them a few day ago.
                                        ...⇄ Gale *. M[redacted]

September 4, 2015
Dear [redacted]:
I have received the above referenced complaint. From review of our file a claim was called in on August 20, 2015 by [redacted] Transmission Center pertaining to the transmission of [redacted]’s 2005 [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 vehicle was then inspected by an independent inspector to verify the shop’s diagnosis and to determine a cause of failure. The inspector found no obvious failure to any components. The torque converter appears slightly blued, poured fluid out of it and there was no metal in the fluid. There is no metal found anywhere in the pan or system. The fluid is good and has no metal. There are no leaks and no codes. The clutches are good for miles. There is no metal found on the valve body and there is no intermix in the transmission. He then noted that were no failed parts shown to the transmission.No covered component failure was found to be defective or worn beyond service limits. In order for reimbursement to be made, the terms of this contract must be met. The terms and conditions of the contract regarding reimbursement for a covered component failure states under the definition: ““Breakdown” means the failure of any original or like replacement part covered by this Service Contract to perform it intended function(s) in normal service, including worn beyond service limits, providing it has received all scheduled maintenance as recommended by the manufacturer in the Owners Manual.” There were no such failures found to the transmission.
The inspector also found that the vehicle had modifications of oversized tires, air filter and cold air intake. The tires on the vehicle are size 285x75x16. The manufacturer’s requirements calls for the tire size of 235x75x16. Based on these findings the contract was then canceled due to these alterations and a refund of the contract was forwarded to the lien holder, Navy Federal Credit Union as stated in the contract agreement.
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 or fraud; • If You have failed to maintain Your Vehicle as prescribed by the manufacturer..." Had our corporation been notified of the alterations the contract would have been rejected.
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                                                            Gale *. M[redacted]

April 4, 2014
Dear **. [redacted]:I have received the above referenced complaint. A claim was called in on February 14, 2014 by [redacted] pertaining to the timing belt cracked, water pump, timing belt tensioner and cam of **. [redacted]’s 2006 [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 had an inspection to verify the shop’s diagnosis by an independent inspector.The inspector verified an oil leak from the exhaust cam seal area, vvt plastic backing plate has oil residue behind exhaust vvt gear. Timing belt cracking and has oil saturation. Tech states timing belt tersioner weak but no failures were shown. Water pump has slight residue. The cause of failure was wear and tear to cam seals resulting in the noted leaks and damage to the timing belt. Failure of the water pump seal resulting in the noted leak. Based on these findings we then authorized $177.51 for the water pump only. As to the cam seals the contract states it does not cover fluid leaks and seals and gaskets are covered only in conjunction with a covered repair. The timing belt was damaged due to the oil leaks. The terms and conditions of the contract regarding reimbursement for a covered component failure clearly states: "Under this used vehicle service contract, THE PeNn WARRANTY CORPORATION will reimburse you, or your repair center, the amount authorized for the repair or replacement of any component covered by this agreement (excluding sales tax) that is found to be defective or worn beyond service limits, including through normal wear and tear.” There were no such failures found. The failures were not due to "wear or defect” but due to an oil leak damaging the timing belt. Also there was not failure shown to the inspector to the timing belt tensioner. All repairs covered under the contract were authorized.After our investigation and authorization of the water pump only **. [redacted] then requested a refund of the contract. . The terms of the Gold Contract states: “...there is no credit for early terminations.”Therefore, I must respectfully deny any refund of this contract. This was also addressed in a letter to **. [redacted] from our Refund Department. All repairs covered under the contract were authorized. Upon review if you have any questions or comments please do not hesitate to contact me.Sincerely,THE PENN WARRANTY CORPORATION

Dear [redacted],
In response to [redacted]'s complaint, the window regulator needed replacement and that is not a covered component under the contract. It covers the window motor which is a separate part but not the window regulator. As to the door latch that is what the shop stated was wrong...

when the claim was called in. This is not covered under the contract. If it was a different part please have [redacted]'s provide the invoice for this repair and it will be further reviewed. [redacted]

Dear Ms. [redacted],
Upon review, this complaint was also submitted to our Dispute Settlement Department and they agreed to send the requested refund of the contract price of $950.00 to Ms. [redacted]. This payment was mailed to Ms. [redacted] on 2/18/15.
Thank you for your time.
Gale T....

M[redacted]

April 22, 2014Dear **. [redacted]:I have received the above referenced complaint. Upon review of our file, on June 19, 2012 **. [redacted] purchased a 2009 [redacted] along with our 36 month/unlimited mileage Gold Contract.On March 18, 2014 [redacted] called in a claim for...

the check engine light on and knocking noise to the vehicle. We spoke with the service center and went over the claims procedure of tear down and possible inspection. The shop needs to have the vehicle torn down to show the necessary and proper repair.This procedure is specifically stated in the Gold 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 matter now stands. The vehicle has not been torn down nor did we receive any proper diagnostic information showing all steps to verify exactly what has failed. All we are requesting is to have the vehicle torn down to show the complete and necessary repair and why this failure did occur to determine if there is coverage under the contract agreement. Please note to the shop wants to replace the engine and to do so it must be removed and it could then be torn down to show the exact repair necessary. Until such time this the proper tear down and/or diagnostic information takes place there is nothing further we can do for this claim.Sincerely,THE PENN WARRANTY CORPORATION

June 17, 2014 
Dear **. [redacted]:I have received the complaint captioned above. Upon review of our file, on June 13, 2014, [redacted]'s husband contacted our claims department pertaining to the transmission of their 2006 [redacted]. Upon discussion he stated that the vehicle had...

already been repaired on June 9, 2014. Based on this information the claim was denied due no authorization.The Contract clearly states under TO OPEN A CLAIM : "Your vehicle must be at a repair center in order for a claim to be opened....Once the vehicle is at the repair center, supply them a copy of your contract. You are responsible to have the repair center call us at ###-###-#### to open a claim (M-F from 9:00AM-5:00PM EST) and with the estimate of repairs before any work begins.” Further, "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 us for the repair.” Additionally, this contract states: "No repairs are to be made on your vehicle until an authorization number is issued by THE PENN WARRANTY COPRORATION” and "Any claims for repairs without prior authorization will not be covered.”Again this is stated in the contract agreement. We were denied the right to investigate the repairs they are claiming and since they were completed without our authorization as per the contract terms, no payment will be made.Sincerely,THE PENN WARRANTY CORPORATION

Penn Warranty Is a Scam comp. They never pay what there sapose to and always say they found the part cheeper somewhere else but never do anything for the customer or shop to expedite TOTAL RIP OFF. NEVER BUY ANYTHING FROM THEM

Dear **. [redacted],
In response to **. [redacted]'s rejection our position remains the same. The contract is in effect and a claim was called in on **. [redacted]'s vehicle for coverage that was then denied. The contract provided is the contract between the parties with the terms and conditions. The reason it has an electronic signature is because it was purchased over the internet through the selling dealer. **. [redacted] knew there was a contact since there was a claim called in. As to the Attorney General we will respond the any complaint received.  [redacted]

June 23, 2014
Dear [redacted],I have received the rejection and our position remains the same as stated earlier. The water pump bearing failed and eventually seized as stated in the shop’s letter. This confirms the inspector’s report of the shaft bearing failure then causing the additional damage. It is not our position that the damage occurred after the time of failure by "excessive usage” as the shop claims, but the continued operation with a water pump having a bearing failure which, with continued operation, caused it to seize and then damage the remaining components. The water pump should have been replaced before the bearing had seized. However, upon review we will offer the total amount of $1,116.88, which is the amount we would have covered for the entire repair including the water pump, fan and radiator. Please note that we are not accepting liability for the refund but making this offer through your office to see if it can be amicably resolved. As to the claim of the independent inspector not latching the vehicle we are not responsible for any additional damage. The inspector is sent to verify the shop’s diagnosis and does not adjust or move the vehicle in any way. Further it is the shop’s responsibility and fiduciary obligation to make sure any property of their customer that is located at their facility is safe and secureSincerely,THE PENN WARRANTY CORPORATION

[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.  Just hope that they send the 199.00 out to me and I am not waiting
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: My bank has received no funds from Penn Warranty. All I've gotten is a voicemail stating the money has been sent with absolutely zero proof. To date I am still owed the entire amount from PWC cancelling my contract. 
Regards,[redacted]

Dear [redacted]
    In response to [redacted]'s rejection our position remains the same as stated earlier.  The damage to the vehicle was due to overheating and continued operation.  This is specifically stated as not covered under the contract agreement.  Therefore not payment will be made on this claim.
                                                                               Gale *. M[redacted]

May 1, 2014
Dear [redacted]:I have received the above referenced complaint. Upon review of our file a claim was called in on April 11, 2014 by [redacted]'s Automotive pertaining to the transmission of [redacted]'s 1999 [redacted]. We instructed the service center to obtain the...

owners permission to have it torn down and diagnosed to show the complete and necessary repair. An estimate was then received for replacement of the transmission and an inspection was order by an independent inspector to verify the shop's diagnosis.The inspector verified that the transmission shows signs of long term heavy leaks from the pan gasket and the transfer case adapter seal. There is heavy long term fluid on the under carriage to the rear of the vehicle and the gas tank is covered in wet fluid and grime build up. The muffler has trans fluid burnt on the side from long term transmission leak. All clutches and bands seen are burnt and black and the steels are burnt from loss of pressure and long term continued operation due to loss of fluid. The torque converter has failed internally from loss of fluid and sent fine metal through out the unit. The fluid is burnt and black and all internal bushings seen are worn to the copper from continued operation and loss of fluid. The cause of failure was long term transmission leaks from pan and transfer case adapter resulted in loss of fluid with long term continued operation that resulted in heat damage to the clutches, steels, bands and converter.Based on this report the claim was then denied. The contract specifically states under section III WHAT THIS SERVICE CONTRACT DOES NOT COVER, #6, FOR FLUID LEAKS OR DAMAGE THAT RESULTS FROM FLUID LEAKS. 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."As to the request of a refund for the unused portion of your contract, we will offer a pro rated refund of $112.50. This is based on the amount of $450.00 received for the 12 month contract that has 3 months of remaining coverage.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

Love this company and have a Penn Warranty on every car I own!! I have never had an issue with the claims process. I own a Gold contract and bought the sensor package add on which made sense and am thrilled to know that I have the piece of mind in my glove box when something does happen to my truck.

January 9, 2015Dear [redacted],I have received [redacted]’s complaint and have reviewed his file. As to any refund request the contract agreement states under V. General Provisions number 7., a 100 percent refund of the Service Contract will be made less any claims paid within 30...

days of the Service Contract Purchase Date. The service contract was purchased on April 13, 2012 thus exceeding the allotted 30 days of provision V. and denying a refund. The procedure of requesting a refund within the 30 days is specifically stated in Provision number 7 “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. Further any refund that may have been granted would have been paid to the lien holder, [redacted] Credit Union as stated in 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 Corporate Attorney