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smart choice warranty HELP !

i purchased a smart choice warranty in 09/01 car broke down 05/29/03got repaired also recieved a claim number for the work done.i paid for work out of pocket now am waiting for warranty company to pay me back. i called about my claim and they are not paying claims,because of nwig anybody out there can explain this to me? or email me kstum320@yellowbananas.com i live in pa.
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Comments

  • I have the same thing --- you are basically out of luck. NWIG (the insurer and claims processor is being liquidated). They say you can pay for it yourself and keep the receipts and MAYBE you will get reimbursed. Dont hold your breath!

    Check out the website:
    http://www.sceadmin.com

    I have copied the info below:

    SC&E LAUNCHED THIS WEBSITE TO KEEP SMART CHOICE CUSTOMERS, AUTOMOTIVE DEALERSHIPS AND AGENTS FULLY INFORMED.

    SC&E Administrative Services, Inc. (“SC&E”) launched this website as part of its continuing efforts to keep customers that purchased Smart Choice Vehicle Service Contracts, and the automotive dealerships and agents that sold the Smart Choice program fully informed of significant events affecting the Smart Choice program.

    Unfortunately, SC&E is unable to answer the literally hundreds of phone calls that come in daily given its limited number of employees, and therefore, has set up this website to keep you informed of the situation as it develops.

    We apologize that we cannot take every call personally and answer your questions and concerns. SC&E understands the frustration felt by both customers and automotive dealerships alike. We are also very frustrated with the situation and we are dedicated to ensure that Smart Choice customers’ rights are protected. SC&E has been in the business of marketing vehicle service contracts for many years and has been at the forefront of customer satisfaction in the automotive service industry. We will continue to work hard on your behalf and keep you informed of our efforts.

    QUESTIONS ABOUT YOUR SMART CHOICE SERVICE CONTRACT

    Although we cannot answer every possible customer question, we have listed below a number of questions and answers about your Smart Choice Vehicle Service Contract.

    Who is SC&E Administrative Services?

    SC&E Administrative Services is an automotive service contract marketing company. Among other programs, SC&E marketed the Smart Choice program to automotive dealerships and others, who in turn, marketed and sold the Smart Choice program to consumers like you. SC&E has been in the business of marketing automotive service contracts for more than fifteen years and until National Warranty’s financial collapse, SC&E has always had an excellent customer service satisfaction record.

    Is SC&E Administrative Services still selling the Smart Choice program?

    No. Unfortunately, because of National Warranty’s Liquidation and the damage that the Liquidation has had on SC&E’s financial condition and reputation, SC&E is no longer marketing the Smart Choice program. Nevertheless, we are staying in business to help Smart Choice customers and automotive dealerships.

    Who is National Warranty Insurance Group?

    National Warranty Insurance Group (“National Warranty”) is an insurance company headquartered in Lincoln Nebraska that administered and paid claims in connection with the Smart Choice program and other automotive service contract programs. National Warranty is listed on your Vehicle Service Contract. National Warranty received millions and millions of dollars to administer and pay claims of Smart Choice customers. Until just recently, the A.M. Best Company, the premier insurance rating agency in the United States, gave National Warranty an “A-” Financial Strength Rating, signifying that National Warranty was in “Excellent” financial health.

    Why has National Warranty stopped administering and paying claims?

    Earlier this year, National Warranty filed for “Liquidation.” Insurance companies are unable to file for bankruptcy, and instead, are required to file for Liquidation. National Warranty is in Liquidation proceedings because it is unable to continue paying claims of vehicle service contract holders. After going into Liquidation proceedings, National Warranty stopped paying claims relating to the Smart Choice program and other similar programs.

    Will National Warranty pay claims in the future?

    Two individuals at KPMG, a well-respected accounting firm, were appointed as the “Liquidators” for National Warranty. KPMG is in the process of determining National Warranty’s financial condition and what will be the most reasonable and fair process of paying claims in the future. Once those questions have been answered, the Liquidators will set up a procedure for Smart Choice customers to file repair claims. At this time, it is unclear what percentage of claims will be paid. SC&E will work with the Liquidators to protect your interests. We will keep you fully informed of the ongoing Liquidation process and will post on this website the claim filing procedure once it has been set up.

    What is SC&E doing to help Smart Choice Customers?

    SC&E is working diligently to ensure that Smart Choice customers’ rights are fully protected. Recently, SC&E, along with automotive dealerships and agents that sold the Smart Choice program, successfully argued in the Nebraska Federal Court for the release of millions of dollars to automotive dealerships and agents for the payment of Smart Choice customers’ claims. Unfortunately, not all automotive dealerships received funds to pay claims, and therefore, you will need to contact the dealership or company that sold you the Smart Choice service contract to determine if it has received funds to pay customer claims. SC&E will continue in its efforts to help you.

    If I own a Smart Choice service contract and my vehicle needs repairs, what should I do?

    First, contact the automotive dealership or company that sold you the Smart Choice service contract to determine if it has either received funds to make repairs and pay claims or whether it has set up an independent program to make repairs for those customers that purchased their Smart Choice service contracts through that dealership. Many automotive dealerships have received funds and continue to make repairs for Smart Choice customers. Second, keep copies of your repair bills so that once a procedure for claims filing has been set up you will be able to submit your claim. Third, check this website periodically for new information relating to National Warranty’s Liquidation proceedings and the claims filing procedure.

    How will I know when and where to submit a claim to National Warranty?

    The Liquidators will likely create a claim filing procedure for Smart Choice customers who need to file claims. Once the claim filing procedure has been set up, SC&E will post the process and procedure on this website and assist in the process.
  • i have the warranty financed in my car loan will i be able to not pay the 1500.00 on my loan ?
  • hi kstum320. Unfortunately, you will not be able to ignore the $1,500 that you added to your auto loan for this extended warranty. This money has already been paid to the warranty company by your bank and your bank is going to want all of its money back regardless of whether your extended warranty company is holding up its end of the bargain.

    Car_man
    Host
    Smart Shoppers / FWI Message Boards
  • Apparently, SC&E Administrative Services (who accounted for 40% of NWIG's business) is NOT going out of business, as was once believed. I think the SC&E site was created as a result of NWIG stating that VSC holders should contact their dealers or the company that sold the contract to the dealership with questions. It was a dispute with SC&E that caused NWIG to go into liquidation in the first place, from what I've read. My contract was sold to me by my dealer and it says that "some of the dealers obligations may be assigned to SC&E Administrative Services". I have been following this fiasco from the very beginning and this is the first public action/statement I have seen by SC&E. I think things are getting very interesting. In any case, don't let your dealer off the hook! The language in my contract is very ambiguous and I recommend contacting your state's attorney general if you've been told by your dealer that they won't honor the contract. Keep the pressure on the dealers! *My contract also states that "the contract is between me and the selling dealer."* There are a lot of good, in-depth articles about the NWIG/SC&E situation in the Lincolstar Journal at http://www.journalstar.com. Just type in "NWIG" in the search box at the top of the Lincolnstar homepage and it will bring up all the articles. Thanks to Edmonds.com for hosting these discussions. I think people who bought these contracts really need to educate themselves about the situation and fight back, and not just chalk this up to experience.
  • The web site was set up because they are no longer answering the phones. When you call you get an answering system that directs you to the web site. Keeping pressure on the dealers is the only recourse at this point but its going to come down to which dealers had reserve funds and how far those funds go. Chances are the only dealers out there who have been covering claims are the ones who had reserve funds and hope to recoup that money when the funds are released. I'm sure SC&E will shut down, their reputation is shot, who's going to do business with them? Chances are Deltagroup (the parent company) will also go out of business eventually as well.
  • It's my understanding that the reserve funds are in the name of SC&E, and that individual local dealerships who sold the SC&E Smartchoice contracts don't have individual reserve funds in their name. Is this not the case? In any case, I would encourage people to read their contracts since, they might contain language like mine, which says "the contract is between me and the selling dealer" and "SOME of the dealers obligations may be assigned to SC&E Administrative Services," which means the dealer IS liable, at least to some extent. I was glad to see the latest release by NWIG which stated that VSC holders should contact the issuers of the contracts, and the NWIG only insured the issuers. It's forcing the issuers/sellers to take some responsibility rather than just trying to escape reponsibility by pointing their finger at NWIG. I bought a contract from my dealership, not NWIG. The liabilities of my contract are with SC&E Administrative Services, not NWIG. NWIG just insured the contracts. If SC&E decided to give the money to NWIG, which was domiciled in the Caymen Islands, then that was their poor judgment and they need to take responsibility for that. I feel as though the contract was misrepresented to me anyways since I was never told that SC&E was "selling off" the contracts to some company in the Cayman Islands, which is what their (SC&E and NWIG) whole arrangement seems to amount to anyway.
  • Could it be that since they are just a "part" of DeltaGroup, that they cannot take this easy way out? Does anyone know more about SC&E's relationship to DeltaGroup, and the legalities of the obligations between these two entities?
  • According to the article in the Lincoln Jounal Star on Sept. 7, NWIG requested Prudential to freeze the accounts. Why would Prudential agree to that unless NWIG's name was also connected to those accounts? The article also goes on to say that some dealers didn't qualify for segregated accounts, which leads me to think that some did have segregated accounts to cover their own contracts. However, from a business standpoint, it wouldn't make sense for the administrator to give complete access of those funds to the dealer. I would think the accounts were set up with trustees to oversee the accounts. As to the relationship between DeltaGroup and SC&E there was an article in the Dallas Business Journal in August 2002 that says "DeltaGroup is made up of four companies: PG Marketing, American Prime Asset, SC&E Administrative Services and Portfolio Administrative Services. Finally, the article in the Lincoln Journal Star on August 21 states DeltaGroup is a marketing organization owned by Yamagata Enterprises.
  • I wonder whether any one of those four companies can declare bankruptcy without the other 3 or DeltaGroup as a whole having to do the same. I read in an article early-on that a lawyer for SC&E said that SC&E was going out of business. My dealership told me the same. But apparently not, at least while all that reserve money is in limbo. My understanding is also that DeltaGroup forced the liquidation of NWIG in order to terminate their relationship with them, since NWIG kept asking for more money to cover claims. That dispute is what brought about the whole situation, and I haven't heard anything about that dispute going to court yet. Has anybody heard the latest on that?
  • If the companies are set up properly one could go bankrupt without effecting the others. However, I would think that it may be possible to sue the parent company or its owners under certain circumstances. Usually, the main reason for setting up so many companies is protecting the group as a whole. The process of going out of business is a slow one. Look at NWIG, they didn't even lay any employees off until about 2 weeks ago! Which means they were still paying all those salaries. I know that it was a dispute between the two companies but the only versions I've seen came from NWIG people so I'm not sure I trust that and I haven't seen any info on a court battle over the dispute.
  • If you go to Section 6, titled "Legal Issues" (page 11) of the Joint Provisional Liquidators Report(I believe the JPL's were appointed by the Grand Court of the Caymen Islands), there is a description of the dispute between NWIG and SC&E that brought about the liquidation of NWIG. http://www.nwig.com/030716%20-%20First%20report%20to%20creditors.- - - - pdf I haven't seen anything about that dispute since this report. This is a MUST READ for anyone involved in this fiasco. I haven't read anything more informative about the causes of the NWIG liquidation.
  • Here is a link to a very interesting document about the SC&E/NWIG situation on the Iowa Insurance Division web site: http://www.iid.state.ia.us/division/orders/sce_info.pdf
  • Two new news stories just came out in the Lincolnstar Journal on the NWIG situation. They both involve how the liquidators are trying to get back money that the NWIG execs seemed to have set aside at the last minute for their own legal defense. They are at:

    http://www.nebweb.com/business.php?story_id=95293 http://www.nebweb.com/business.php?story_id=95588
  • I just found out about the liquidation and am another smartchoice warranty holder. this forum is great. scammedipna says that the contract says "the contract is between my and the seller" but it also says "" that the liabilities of the Contract are with the SC&E administrative Services" thus the murkiness. Has anyone had any success with the dealers? I am calling my dealer today and then calling the PA AG's office, but it would be great to know what other people are finding out.
    marcy
  • Hi Marcy. I am sorry to hear about your negative experience with Smart Choice. You definitely should contact the dealer that you purchased your contract from. They are not obligated to do anything for you, however, I have read in several articles that certain dealers who have sold Smart Choice warranties to consumers are covering repairs until this whole mess gets straightened out to keep their customers happy. These are some of the quotes that I was talking about:

    Source: Automotive News 7/4/03 - EDWARD LAPHAM COMMENTARY: Extended warranty troubles

    "July 4 -- There has always been a question about the value of buying an extended warranty on an automobile. Most consumers don't realize that they can negotiate the price of an extended warranty, which makes them big-profit items for dealers.

    But the game is changing. One of the big insurance companies that backs thousands of Smart Choice extended warranties sought protection from its creditors.

    Now, some dealers say they aren't being reimbursed and are paying for customer repairs out of their own pockets."

    Source: Automotive News 6/30/03 - Dealers caught in warranty war, Insurer's problems force tough choices

    "Five thousand dealers who sold service contracts under the financially troubled Smart Choice program may have to choose between two evils - pay off hefty repair claims themselves, or tell angry customers to slug it out with insurers.

    Either way, some dealers could lose....

    The contracts, which can range from one-year to 10-year terms, cover repairs and parts for vehicles out of warranty. According to dealers, they sell a typical three- to five-year extended-service contract for $800 to $1,500. Some dealers may try to cancel the contracts because it may be cheaper to issue a refund than pay for a $6,000 engine job, says Kirk Borchardt, a Santa Barbara, Calif., lawyer who represents Smart Choice agents and their dealers....

    Other Las Vegas dealerships are paying off repair claims, but they aren't happy about it. 'I am concerned we are going to be left holding the bag on 700 warranties,' says Tom Downer, COO of the Fletcher Jones Management Group. 'I won't believe anything until I see some claims money....'

    Dealers face tough choices.

    Customers could blame them for selling them a worthless contract. And if a dealership pays for the repairs as a goodwill gesture, it might be held legally liable for other contracts, says Mike Charapp, a Washington dealer attorney.

    'The problem with starting to cover repairs is once dealers start eating repairs, where do they stop?'

    That question worries Chicago dealer Jeff Jacobs, owner of Jacobs Twin Auto Plaza. When he started selling Smart Choice in 1996, the warranty looked rock-solid.

    But in the last three weeks, Jacobs has paid $30,000 for customer repairs that should have been covered under the contracts. He stopped selling Smart Choice three years ago, but Jacobs still has 2,500 contracts outstanding. The company that insures Jacobs' dealership has told him the claims are not covered under his general liability policy.

    'You are more likely to get claims as the cars get older,' says Jacobs, a multifranchise dealer with $150 million in annual revenues. Transmissions and engines can cost $3,000 to $7,000 to replace, he says.

    If a dealer gets two or three such claims a month, he may end up spending $100,000 to $200,000 a year on repairs.

    Says Jacobs: 'This is a snarled mess with no easy answers.'"

    Again, there's no guarantee that they will work with you, but you don't have anything to lose, especially if you have a good relationship with this dealership.

    Car_man
    Host
    Smart Shoppers / FWI Message Boards
  • I purchased a new Chevrolet in October, 2002. I also purchased the Smart Choice extended warranty for $1,175. In November, 2003, I traded this vehicle in on a new 2004 Chevrolet and purchased an extended warranty for this one (not sure who the service contract is with, but am calling today to cancel it.) I never used any portion of the extended warranty and the 2002 vehicle was still under manufacture warranty. The two vehicles were purchased from different dealerships. I went back to the dealership I bought the 2002 from to get a refund on the extended warranty. They told me that the extended warranty was with Smart Choice and not them. That Smart Choice went belly-up and that I would not be getting a refund.

    I was not told this when I purchased the extended warranty, but was led to believe that this was an extended warranty from the General Motor Corporation on both vehicles. I have given the dealership 24 hours to pay the refund on the warranty. If I am not reimbursed by the dealership then I will take it to the news media.

    Does anyone know if all General Motor dealerships use Smart Choice or if they are the only dealerships that use it?

    Does anyone know if there is any legal class-action suit on this issue in behalf of the consumers?
  • i to would be interested to no if there are any lawsuits going on to cover my repairs i have already had done and am waiting on reimbursement for. should i report the car dealership to my ag for not even attempting to help me? thanks, kim
  • Hey Car_Man, I'm not so sure dealers have no obligations (although I sure they would like everybody to believe that.) My contract says that the contract is between me and the dealer, with SOME of the responsibility, etc...resting with SC&E. I certainly haven't let my dealer off the hook!!! I have filed papers with my state's Attorney General, against the dealer, and I encourage ALL people who got taken to KEEP THE HEAT ON THE DEALERS who sold them the contract. After all, they sold you the contract and made money doing it. I have also contacted my local police and they state that as long as I'm not blocking traffic or trespassing, I have every right to exercise my right of free speech and let everybody know how I feel about this dealership. I've already thought up a few good slogans for picket signs.
  • KCRamKCRam Mt. Arlington NJPosts: 3,516
    Hi wdtokarz

    The official extended warranty from General Motors is the GM Protection Plan, and you can read all about it at this link: GM Protection Plan website. Anything else is a third-party warranty, as far as a new GM vehicle is concerned. All manufacturer-backed plans have the manufacturer name and logo - GM Protection Plan, Ford ESP, DaimlerChrysler Service Contract, HondaCare, etc. If you're ever unsure, decline the dealer's offer and go to the manufacturer's website - you can always find out if they offer a factory plan and what its name is.

    kcram
    Host
    Smart Shopper and FWI Message Boards
  • landru2landru2 Posts: 638
    Then be prepared to look foolish in your local media. Unless you expect anyone to believe that in 13 months you never once looked at the documentation that came with the warranty you purchased. And that you still have no clue as to who your current warranty is through.

    Sorry about your troubles. Maybe now you'll actually read all those papers that you sign.
  • I purchased a Smart Choice extended warranty through National Warranty in Feb. 2003. In May, 2003 I FULLY PAID the warranty. In June, 2003 I cancelled the warranty after learning that National Warranty was being audited. I never used the warranty. The company that I was sending my payments to (CAC)on this warranty told me that I would receive a refund of approximately $1,635 in a couple of weeks. I had never received anything and when I contacted CAC to inquire what was going on, I was told that National Warranty had filed Bankruptcy. Now I am trying to find out how to go about getting my refund back. I cannot seem to get ANY information on my situation. Please help.
  • mney6mney6 Posts: 116
    www.sceadmin.com
  • I am one of the unfortunate souls who purchased a Smart Choice warranty. In May 2003 I had to have repairs made. The warranty company approved the repairs but of course I have never been reimbursed for the money.

    In addition, the dealer that sold me the policy is also out of business.

    I have read that some monies have been allocated to dealers to pay claims. Anyone else in my situation without a dealer to contact. Any suggestions?
  • mitzijmitzij Posts: 612
    I doubt dealers have received money from Smart Choice to pay claims. If dealers are paying claims, it's out of the the dealers' pockets. Your fight is with Smart Choice. If I were you, I'd bug the H--- out of them. Call often, demand answers. Insist on speaking to a higher-up. Leave messages for the higher-up. Always be polite, but direct. If the 800 number doesn't work, use the direct line. (should be on the contract somewhere) Hopefully you have that preauthorization for repair in writing, or at least an authorization number. If you have a fax number, fax the paperwork to them on a regular basis. You might not get anywhere, anyway, but at least you're trying. Maybe the squeaky wheel will get some oil.

    Re: someone's earlier post...
    Not all GM dealers sell the same service contracts. None of them have to sell any. Probably all sell GMPP. If it's not GMPP, it's an independent company with a deal between the dealer and that company. Some dealers will back up promises made by the SCC, but they don't have to.
  • q45manq45man Posts: 416
    In many states they do have to back up the company for which they are the seller [franchised dealers have special obligations they would like to forget]. Depends on their contracts and state insurance laws.
    Check with your local STATE insurance commissioner.

    The trade news was full of stories about dealers laying out hundreds of thousands of dollars to keep people quiet.
    http://www.consumeraffairs.com/auto_warranty/smart_choice.html
    http://www.autosafety.org/article.php?did=820&scid=93
  • I FOUND OUT ABOUT THE LIQUIDATION, AND I AM SMART CHOICE 2000 CUSTOMER. I AM TRYING TO CONTACT THE WARRANTY OFFICE BUT I DON'T HAVE ANY LUCK. THERE IS A LEAKING NOISE ON MANIFOLD (EXHAUST) OF WHICH IT IS ALSO COVERED BY THE EXTENDED WARRANTY THAT I PURCHASED ON 2002 AT HONDA DEALERSHIP. HOW CAN I CLAIM IT, AND HAVE IT FIX SO THAT I CAN BRING IT TO AUTO REPAIR SHOP BEFORE I RENEW THE REGISTRATION OF MY VAN? DO I STILL HAVE THE RIGHT TO SUCH WARRANTY SERVICE?
  • mney6mney6 Posts: 116
    the dealership that you purchased it from.They may take care of it.Or they may split the cost for you.
  • when I discovered all this 'stuff' with smartchoice I called the dealer that sold my warranty to us. He said Smartchoice was being sold and another company was assuming the warranties. Anyone else here of this?

    my car has not needed any repairs and the dealer said for now they are covering it and then told me smartchoice was being sold ... I have not done anything since then, but it the meantime I am thinking I need to write the dealer a letter confirming they are covering any future covered repairs.

    has anyone contacted the Insurance Commissioner in PA? I hope to do that this week.
    marcy
  • You can file a complaint with the PA Attorney General's office, as I did, but the PA Insurance Commission won't help since NWIG was a RRG (risk retention group), not an insurance company. My contract (and I would assume all PA Dealer contracts) states that the contract is between ME and the DEALER, with SOME obligations to SC&E, so I think the Dealer is responsible to some extent. In fact, when you file with the Attorney General, you will file against the Dealership (which, after all, offered to sell you this "insured warranty", took your money and made a sizeable commission). I strongly suggest that all PA residents who bought contracts through Dealerships KEEP THE PRESSURE on your dealer if they fail to honor the contract. File against them with the PA Attorney General and share your negative experience with the Dealership to EVERYONE you know at EVERY available opportunity. Word of mouth is a big thing with car dealerships, and the dozens of people I've told about my bad experience have said that, for that reason alone, they would not go to that dealership. (This is a big dealership in the Pittsburgh area.) Luckily, nothing has gone wrong with my vehicle so far. I have though about picketing this Dealership as well. The local police told me that as long as I do not block traffic or trespass, I am free to express my opinion about this establishment to the public.
  • mney6mney6 Posts: 116
    have you even contacted the dealership about how they are handling the Smart Choice contracts.
    And if you find out that they are taking care of their customers will you tell those dozens of people that you jumped the gun about bad mouthing them?
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