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Warranty Gold - Still Paying for Nothing

Warranty Gold • Stuck with big repair bills • Still selling policies • Good as gold? • Still paying ... for what? • Other problems --- News • Court Extends Deadline to File Claims Against Warranty Gold • National Warranty Bankrupt

Customers who bought their policies before June 6, 2003 who are still making payments on the policy should consider canceling. Even if the company eventually is able to pay claims, it's not likely it will be able to pay the full amount of any claim. Policyholders need to read their policy carefully to find the cancellation instructions and then follow them to the letter. Written notification, preferably by certified mail, return receipt requested, is a must.

John of Boise ID (8/23/03):
I have three Extended Warranties on automobiles with Warranty Gold. Recently the underwriter for their contracts went into liquidation. On August 4th, 2003 I took my car in for what should have been a covered repair on my Warranty Gold contract. When the dealer called for authorization, they received the recording that NWIC was being liquidated with no futher information. I was forced to pay for the $1100 repair out of my own pocket.

Upon calling a service rep at Warranty Gold, I was told all contracts purchased prior to June 2003 were not being honored at this time. We could not receive a refund on the contracts as stated in the agreement, nor receive payment for any repairs. I was however told if I didn't make the final installment on my last contract of $275.00 that contract would be cancelled by Warranty Gold with no refund. I asked the rep how they could demand payment on a contract they were not honoring, yet still owed me $1100.00 in claims for, and he had no answer. I asked the rep,"If you were me would you send another $275 dollars to Warranty Gold?". His response was, "NO".

I was advised by the rep to fax a copy of the paid charges for repair to Warranty Gold. I faxed that information attaching a request that I be notified either by, e-mail, phone or letter that they had received it. There has been no response. Warranty Gold has made no attempt to notify their thousands of customers holding invalid contracts that those contracts are not being honored at this time. That means that thousands of cutomers are sending in installment payments on worthless contracts everyday. Where is that money going if the underwriter for those contracts has gone into liquidation.

It is obvious that Warranty Gold is not notifying customers, because the money coming in for worthless contracts would stop. You can also note that Warranty Gold has posted so many ads on the internet that any search with their name will only return information posted by Warranty Gold themselves. This basically shuts off internet inforamtion to the consumer regarding their situation. I would think there is some law requiring a Warranty Company to notify customers if their contracts are not being honored. Maybe I am wrong. If so this country is not what I thought it was.

It has been almost a month since Warranty Gold has stopped honoring previous contracts. Not one consumer holding those contracts has been notified unless their vehicle is in the shop with problems.

Damage: Out of pocket expenses of $1100.00 that should have been paid with a $50 deductible by Warranty Gold. I now hold approx. $4,000 worth of contracts on 3 separate vehicles that are not being honored at this time. With no information from Warranty Gold as to the future of those contracts. Warranty Gold is demanding another $275.00 payment or they will cancel the contract which will give me no way to ever recover my loss or get future service from Warranty Gold. They owe me $1100 and want another $275.00 on a contract not in effect at this time. Go figure!

John of Coral Gables FL (8/20/03):
I cancelled my policy back on 7/3/03 and was told to expect a refund in 6 weeks since they were backlogged. I called on 8/18/03 and spoke to Matt in customer service. He asked if I was aware of National Warranty's bankruptcy. I told him no and I was expecting a refund on my policy - not a claims reimbursement. He then put me on hold and came back stating problems with their trust administrator and he didn't have an answer about my refund.

This is absurd considering they are insured TWICE as stated on their sites FAQ. What good is their insurance if I can't have a refund rightfully due to me? To add insult to injury, I received an email from a Louie Tamez on August 12th, asking me to call him to purchase a new policy! I'm ready to send a demand letter for payment before I file a small claims suit for maximum damages.

I was expecting this refund of over $740.00 posted back to my credit card. I don't need this policy since I bought a new car. $740.00 would help pay down a Visa card and now that they are clueless on how to proceed with a refund, I'm stuck with a worthless policy not even worth of lining a bird cage!

Kendrick of Memphis (8/18/03):
I am one of Warranty Gold's customers that are caught in the middle. I purchased my policy on May 9th of this year. However, I am paying for it over 12 months. Warranty Gold deducts from my MasterCard every month and they will continue to do so until I cancel the policy or the card, although I cannot get claims paid. They claim that if I cancel, all that I can get refunded is $92 compared with the $600 that I have already paid. That's with no claims being filed!

I am trying to make the determination whether or not Warranty Gold can recover from this. I've called Warranty Gold 5 times. They were very honest about the situation and adamant about quickly resolving it. My only gripe is that they should have notified all of their customers about NWIG back in June. I only found out about this when I just happen to call just to make sure everything was in order because I was planning to have work done on my car.

I have been billed, but have not used service (filed a claim) since purchase of policy. I want a full refund because I need work done to my car. With the refund, I can pay for it myself.

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