Ultimate Warranty Company Complaint - Out Of Business, Ripping Customers Off
RALEIGH, NORTH CAROLINA -- In May, 2006, I purchased a new car from David O'Neal Automotive Group in Raleigh, NC. The car came with the standard 3 year/36,000 mile warranty, but I put a lot of miles on my car so I opted to purchase a WRAP warranty on the car that covered everything for 7 years/100,000 miles. I recently found out I have to have over $900 worth of repairs done to the car, and since the mileage is over 36,000, I went to the service department and asked them if they would file a claim for me using the WRAP warranty. I was informed by the service manager that the warranty company was out of business and they were not working with them any more. I confirmed that by calling the number for the warranty company and finding out that a risk management company was now in charge handling all their calls. They said the company had used all their funding and they were no longer paying claims.
Needless to say, this came as a very unpleasant surprise to me. I paid $1565 for this warranty and now found out when I needed a repair that they were no longer around. I contacted David O'Neal Automotive Group to find out what they were going to do about this situation since I bought the product from them and they no doubt made a nice commission on the sale. I was told by the finance manager that there was nothing they could do except cancel the warranty and put me on the class action suit against the company. That basically means that the chances of me getting any money back for this warranty are slim to none. I explained to the manager at David O'Neal that I have a very expensive car repair that has to get done, and I was counting on the product I bought from them to take care of it. They could not have cared less.
I was never made aware that my warranty was now worthless, no notice was sent and no one ever contacted me. It was up to me to find out when I took my car in for repair. Finding out you have to come up with over $900 less than a month before Christmas is not a nice surprise, and I am sure there are many other customers who bought these warranties who have no idea they are now worthless. That, in my opinion, is not something the warranty company or the car dealership should be able to get away with.