After several phone calls from telemarketers, on December 13, 2007, I purchased an extended warranty from National Dealers Warranty Inc. The deposit over the phone was $195 and then there were monthly payments of $149.89 for 18 months.
Then, on August 23rd, I brought my car to the local Firestone Auto Care Center for an oil change. At that time, they told me that my two front CV joints were going bad and needed to be replaced. I went home to retrieve the warranty paperwork and returned to Firestone. Firestone contacted the Claims phone number for the authorization to do the repairs and National Dealers Warranty Inc refused to authorize or pay for the repairs.
I called them many times after this and they continually refused to pay for the "covered" repairs. Many times when I called, no one would even answer the phone. Other times when I called, they would say that their department couldn't help me and they gave me other phone numbers to call. Then, when I would call the next phone number, either no one would answer or they would continue to deny that they could help me or simply refused to pay for the needed and "covered" repairs.
In October, I contacted my credit card company to dispute the charges and the credit card company was able to reverse the four last charges by that company, but they couldn't go back further.
On October 27, 2009, National Dealers Warranty Inc then sent me a "past due" statement for $157.38 that was originally due on 3/13/09, but was now due on 11/21/09. When they realized that I was successfully able to retrieve four payments, they sent me a combination "Cancellation Notification/payment due" statement, with a due amount of $629.52, with a payment due date of 3/13/09.
I filed a complaint with the Better Business Bureau. They were given until December 17th to respond, but they responded today, December 9th. Their response to the complaint is as follows:
According to the Administrator of this contract, Gold Key, Ms. [Surname Hidden] had her vehicle at Firestone for repairs on 10-1-2009 and needed a right front axle, timing belt and the service engine light was on. The service advisor at the shop told their adjuster that the customer was in their shop in August and the shop had advised Ms. [Surname Hidden] that the axle boot was cracked and losing grease. Ms. [Surname Hidden] was told by her shop that this needed to be replaced. Ms. [Surname Hidden] continued to drive the vehicle until all the grease that surroundsd the constant velocity join was lost through the split boot. This is what caused the damage to the c/v joint. This is why the claim was denied...due to continued use after Ms. [Surname Hidden] repair facility had let her know there was damage and she did not have it repaired.
The shop had also advised Ms. [Surname Hidden] to replace the timing belt. The contract does not cover routine maintenance items like the timing belt. The shop was not able to give Gold Key a diagnosis for why the serice engine light was on. Ms. [Surname Hidden] has already received a refund of her last for payments totalling 599.56. I would be happy to send Ms. [Surname Hidden] an additional pro-rated refund of 821.82. This contract has been in effect for 2 years. Ms. [Surname Hidden] should be receiving the 821.82 in approximately 10 business days.
They have lied and the facts are:
Firestone Auto Care
WORK ORDER #076416
Half Shaft (Front-Both)60-3265 L REMN CV COMPL ASSY $140.9060-3266 R REMN CV COMPL ASSY $140.90REMOVE & INSPECT F AXLE SHAFT ASSEMBLY - BOTH $170.00REPLACE AXLE SHAFT EACH SIDE $25.50 x 2TOTAL THIS SECTION $502.80
ENGINE DIAGNOSTIC SERVICESymptom: Eng:Dash Light On-COMPUTERIZED ENGINE ANALYSIS $79.99TIMING BELT95284 TIMING BELT $46.99REMOVE & REPLACE TIMING BELT $226.207027871 FAN BELT $21.99335K4 POLY RIB BELT $21.99345K4 POLY RIB BELT $18.99TOTAL THIS SECTION $416.15. TOTAL $918.95
This work order, dated August 23, 2009, disputes their claim that Firestone Auto Care told National Dealers Warranty Inc that the "axle boot was cracked and was losing grease" and also National Dealers Warranty Inc's statement that the car was first brought in to repair the axles on 10/1/09. It clearly shows that on August 23rd, National Dealers Warranty Inc was told that the needed repairs were for both front axles and also for the timing belt. National Dealers Warranty also states that "The contract does not cover routine maintenance items like the timing belt."
Per page 3 of the Gold Key contract:
The following is a list of Covered Parts under this Contract (Taxes and fluids needed for authorized repairs are also included): (1) Engine - Engine head(s); engine block; cylinder barrels; timing cover; valve covers(s); oil pain (SIC); dip stick & tube, ONLY if damaged by the failure of an internal, lubricated part. The following internal, lubricated parts: pistons, pins & rings; connecting rods & bearings; crankshaft & main bearings; camshaft, followers & cam bearing; push rods, valves, springs, replaceable guides, seats & lifts; rocker arms, shafts & bushings; TIMING GEAR, chain, tensioners & retainers; eccentric shaft; oil pump. Also covered are the following: TIMING BELT; water pump; intake & exhaust manifolds; turbo charger; engine mounts & cushions; engine torque strut; harmonic balancer; flexplate; idler pulley bearings.
National Dealers Warranty Inc has lied about what parts it does or does not cover. It has lied about what they were told by the Firestone repair shop, and it also lied when it stated that they refunded the last four payments for a total of $599.56. I expect that they are also lying when they state that a refund of $821.82 will be mailed to me.
On December 2nd, I met with an attorney. I brought the contract, all of my phone records, credit card statements, and the Firestone repair paperwork. He is in the process of contacting them for a full refund. I also met with John Matarese of Channel 9 (Cincinnati) and he does the "Don't Waste Your Money" segment and today I met with Howard Ain of Channel 12 who airs his "Trouble Shooter" segment. I did an interview with both gentlemen, gave them both copies of pertinent documents, and both channels will be airing the interviews within the next few days. They will also contact National Dealers Warranty Inc for a response to my complaint.
From the Better Business Bureau's website regarding National Dealers Warranty Inc:
Based on BBB files, this business has a BBB Rating of F on a scale from A+ to F.Reasons for this rating include:
* Length of time business has been operating.* 333 complaints filed against business* Government action(s) against business.* Advertising issue(s) found by BBB.* Business has failed to resolve underlying cause(s) of a pattern of complaints.
Additional DBA Names: Canadian Auto Warranty ServicesNational Dealer Warranty, IncStop Repair Bills.com
"On Nov. 12, 2009, Attorney General Koster filed lawsuits against six vehicle extended warranty companies, including Extended Warranty Corp.
According to Koster, the businesses marketed what appeared to be "extended auto warranties" to consumers, but actually were "service contracts" or "automotive additives." Many consumers did not realize they were not receiving auto warranties until they received the package in the mail. The companies sold the products as service contracts and auto additives with the effect of avoiding Missouri's service contract laws, which provide some minimal protection for consumers.
Customers who purchased "service contracts" often later realized the significant limits to coverage. Many contracts contain a 30 to 90 day, 1,000 mile period during which consumers cannot make claims, because that is considered a "pre-existing condition" of the vehicle. However, the extended service contract is only fully refundable within the first 30 days. Customers asked for a cancellation or refund when they discovered the provider would not pay a claim after that initial period, but were refused refunds because they were not within the 30-day cancellation timeframe. Many of the contracts have also been promoted as extending a warranty for 7 years and 100,000 miles. These companies do not tell the consumer that the coverage may be limited to the actual cash value of the vehicle. For an older, high-mileage vehicle, the coverage may soon be less than the price paid by the consumer for the contract.
For companies using the auto additive scam, customers were sent a bottle of fluid for their car's transmission, engine, or cooling system, with instructions to immediately add it to the vehicle. Customers were instructed to install the additive in order for the warranty to be valid. But they later were denied a refund and told the purchase is non-refundable if the product has been used. In effect, the companies encouraged consumers to use the fluids immediately, knowing that would nullify their opportunity for a refund. Many consumers did not request the additive and did not realize they would be sent this additive until they received the packet.
Koster said the companies marketed these products using misleading letters, postcards, and telemarketing techniques, some also in violation of Missouri's No-Call law. He said the businesses would lead consumers to mistakenly believe their current vehicle warranties were about to expire and that they would not have another opportunity to purchase an extended warranty unless they acted immediately. Many potential customers were not informed that the businesses were not affiliated with the dealership or manufacturer from whom the customers bought their vehicles.
In addition, some of the businesses sought to illegally obtain the consumer's bank account or credit card information by misrepresenting the purpose of the information. The businesses would then cause automatic charges to consumers' bank accounts or monthly charges to their credit cards without the consumers' permission or knowledge.
Koster's suits charge the businesses with unfair and deceptive practices violations. Some were also charged with violations of Missouri's No-Call law. In addition, he charged National Dealers Warranty with violation of a prior Consent Judgment and Permanent Injunction issued by the Circuit Court of St. Charles County in 2008.
Koster is asking the court to issue preliminary and permanent injunctions requiring the companies to comply with Missouri's Merchandising Practices Act; provide full restitution to victims and to the state; and pay civil penalties and court costs."___________________________________________________________
I found the second to last paragraph particularly interesting. "In addition, he charged National Dealers Warranty with violation of a prior Consent Judgment and Permanent Injunction issued by the Circuit Court of St. Charles County in 2008." In other words, they have no respect for the law whatsoever or even court orders!
So, after all this, I have attracted negative attention to this company through the BBB, my attorney, and two TV stations, and everywhere I can publish my personal dealings with this company. And, in the end, I won't stop, even after I receive all of my money back from National Dealers Warranty Inc. I will continue to speak evil about this scam company and their evil practices.
Review about: Gold Key.