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smart choice warranty HELP !



  • I talked to the agent who sold the Smartchoice warranties to my dealer and he said that all the dealerships in the state of Pennsylvania are what are known as "administrator obligors" which means, according to him anyways, that all dealers in PA are non-obligors, and that SC&E is responsible for the Smartchoice warranties. Apparently, the wording in the contracts does differ, so I still want to talk to an attorney. Also, a deputy attorney general was assigned to this case in PA, and I'd like to check that information with them.
  • Why would a company "pick up" these warranties? How do they make a profit? Who is paying them?
  • My understanding is Prizm solutions is administering the warranty and the dealers are actually paying the cost of the repair. This is what the Prizm rep told me as well as one of the employees from a local dealership. Could be wrong but either way the repairs are covered.
  • chaz1prochaz1pro Posts: 5
    To all Smart Choice Warranty holders: I just got some great news and i'm posting it for all. I have discovered that the "provisional liquidators" from the Caymen Courts have completed the bankruptcy proceedings. Now all Creditor's (SC & E, and 3 others) have 10 days to select an administrator to handle all UNPAID CLAIMS and CANCELLATIONS. I also have been advised that a new adminitrator will be assigned to take over the remaining warranties that customers keep, at no cost to the consumer. I will update u further as my investigation continues.
  • Chaz1pro, This sounds like great news but what is your source for this information? The finance guy at my dealership hasn't heard anything and there hasn't been anything posted at SC&E's website at
  • deeleehdeeleeh Posts: 5
    FYI, the website for SC&E was slapped up there to try to appease people. The truth is, it has never been updated in any way, and I doubt they ever intended to maintain it. In fact, some of the people at Deltagroup didn't even know the website existed until recently! So I wouldn't expect to see any info there. I haven't heard about any new developments with Smart Choice but I will ask the people I know who would know.
  • chaz1prochaz1pro Posts: 5
    A note to all.....I'm a dealer! I too have alot at stake. I have a good reputation, a strong presence in my community, and a great sense of responsibility for my customers that have purchased Smart Choice from us. I cannot get any assistance from our Attorney General and have been doing my own investigation. I have been staying up with this with the help of Dick Piersol at the Lincoln Journal Star, our Delta Group Representative, and other key contacts. The latest information in writing is at this will assist you in letting you understand that the end is hopefull near. Also you can go to NWIG's website and scroll towards the bottom for the latest updates. Good Luck to all, and lets hope for a fair resolution for all contract holders.
  • scammedinpascammedinpa Posts: 29
    Chaz1pro, what's the bottom line on the Smartchoice contracts? Are they really being honored? Should the dealerships who sold them be aware of this settlement by now? Thanks.-Ken
  • gpo1gpo1 Posts: 2
    after filing a complaint with the pa. attorney general regarding my smart choice contract i received a letter which stated in part,
       the Bureau of Consumer Protection met with the former owners of this car dealership to review his losses and profits regarding the sale of National Warranty Corporation leases.
        our office remained concerned over whether the dealer may have profited from the sale of these contracts and should relinquish such profits in light of the closing of the warranty company.we have reviewed our records of the former owner of the dealership and are satisfied that his losses in addressing several dozen claims such as yours outweigh any profits made through these is our determination that further action by this office against the dealer is not feasible under the circumstances.
  • scammedinpascammedinpa Posts: 29
    I called Prism Solutions and the (very nice)person there told me that they are administering the contracts for several dealerships, mostly in New York, I think. They are processing claims to determine what gets covered, just like NWIG was doing before they went under. However, Prism is not actually paying any claims. That is up to the dealership.
  • msbluemsblue Posts: 1
    I bought my Smart Choice warranty through Consumer Automotive Consultants, and for the first 9 payments or so, it was deducted automatically from my credit card. I wonder if there is any recourse there? Also, was wondering if there really is ANY hope of getting reimbursed for this mess? How unlike ENRON is this, really?
    I'm sure there are a few "lucky" souls relaxing in high style, while the rest of us pay for their lifestyle!
  • ealeal Posts: 2
    I sued my dealer in small claims court (Connecticut) and won.
    My contract stated "The contract is between me and the Selling Dealer"
    when I found out smart choice was in bankruptcy I read my contract and it had a cancellation clause. I followed the directions and sent a request for a refund. They refused so I went to small claims court.
    Their argument was that I had to get my refund from smart choice not them they said they had to service my vehicle but refused to refund me the money. We had a hearing on 6/15 and I just received notice they must refund me $1300

    The key to winning was that my contract was with them the "selling dealer" not with SmartChoice.
  • Wow! That's great! Did your contract also state that "some of the Selling Dealer's Obligations may be assigned to SC&E Administrative Services?"
  • Hss anyone else sued the dealership? My contract also states that the contract is between "me and the selling dealer", but adds that SOME of the dealers obligations may be assigned to SC&E Administrative services (Smartchoice). I am in Pennsylvania. My dealer says they will not honor the warranty.
  • I heard Ivan is headed straight for the Cayman Islands
  • ahlusahlus Posts: 8
    Who should I be looking at to supply me with a warranty.
  • dtownfbdtownfb Posts: 2,915
    If you want a solid warranty, go through the manaufacturer like Honda, Ford or GM. You can find dealerships that will sell you the warranty over the internet normally with a discount. If you buy a third party warranty, BEWARE!!! Too many stories of companies going out of business.
  • That is good news but how do you get your name out there for them to know that you have this issue. I have already tried to find the Attorney General and filed a complaint with the better business bureau. But how do you get the lawyers and the courts to know that over $2,000 of that funds is yours in breach of this contract. I just don't feel that I have done enough and that I am losing a channel of notifying someone that I am involved too.
  • I just found all this out on 04/15/05 because I need a part and never needed to use my warrantee until now. Am I the last to find out? Anyone still going threw this?
  • driftracerdriftracer Posts: 2,692
    and perhaps I'm too experienced in things like this after dealing with folks with aftermarket contracts as a service manager, but I've seen this a lot...I wish you luck, and a consumer lawyer would probably be a good move.
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