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Warranties Backed by a Risk Retention Group
Now I am writing to you about 2 other warranty companies that are backed by Risk Retention Groups. As we have learned from the Warranty Gold/National Warranty RRG debacle the damage to the consumer is immense. What we don't need are more people to be victmiized as the Warranty Gold/National Warranty customers were.
1. Interstate National Dealer Services (INDS) - A.M. Best issued a press release on December 23rd downgrading National Service Contract RRG from A- (excellent) to B++ (very good)with the rating still under review with negative implications. In case you don't know National Service Contract, RRG is majority owned by Interstate National Dealer Services (INDS). I can remember all too well how quickly National Warranty fell from grace as soon as AM Best dowgraded them.
2. First Automotive Service Corp - aka First Automotive Insurance RRG. On January 12, 2004 the Texas Department of Licensing and Regulation issued a press release on the following:
"The Texas Department of Licensing and Regulation (TDLR) has obtained a permanent injunction ordering a New Mexico service contract provider to stop offering or selling extended warranties for automobiles in Texas for which it lacks proof of adequate financial security.
Judge Suzanne Covington of the 201st District Court in Austin Monday ordered First Automotive Service Corp. (FASC) of Albuquerque to stop providing, offering, advertising, selling or marketing service contracts unless it can show that the policies will be properly backed".
If you remember First Automotive Service Corp is the new administrator for Warranty Gold!!
I only hope and pray that these two companies don't continue to slide like National Warranty did. What we don't need is more consumers facing the same problems we all did since the National Warranty failure.