i can tell you, right now, what WG is going to tell you:
the monies paid into your account were received and held by NWIC. funds held by NWIC are frozen until the banruptcy proceedings are finished. so it is impossible to write a new contract for the new owner of your vehicle. thank you and have a good day.
i am just as mad as you are about this (maybe i have some irish blood in me. LOL). they are going to weasel and squirm their way out of giving you any sort of equitable satisfaction. let me be the first to welcome you to the chorus. (are you a soprano, or baritone?)
Well I'm a baritone in the sense that I'm a male; but a Soprano (c.f. HBO) when it comes to going after companies who are irresponsible and non-responsive. Only legal recourses of course.... I'm not into smashing knee-caps!
What is interesting here is that I am not seeking any funds from NWIC ... only that WG honor their own contract with me. NWIC did not promise me to transfer the warranty. I don't need any funds from NWIC to pay for a claim. I'm "simply" asking WG to issue a contract to the new owner for the time remaining on my contract with them ... as agreed to in the contract. NWIC does not even enter the picture, as far as I'm concerned. WG - not NWIC - gave no indication (in early July) whatsoever that transferring the warranty would be problematic. As noted before: they even faxed the necessary form to me. If in fact they were hindered from issuing a new contract at that time, it was incumbent on them - I argue - to offer a full disclosure. By failing to do so, they knowingly allowed me to enter into a transaction that was inherently flawed. If that is not illegal, then I'd be very surprised.
If I don't hear from WG soon with a substantive response to my inquiry and proposal for resolution, I'll retain an attorney to discuss the dispute with them. Does anyone have any experience to know if this awakens them?
Too many people settle for mediocrity; I will not. Sitting back and relaxing is a co-dependent activity which only encourages the kind of cavalier disregard for consumer rights that - sadly - have become too commonplace in today's business climate.
I entered into a contract with WG - not some Cayman Islands off-shore company - and I will use every legal resource to ensure that they meet their contractual obligations.
WG is hardly broke. Just check out their web-site. Does it appear to be a broken company? I don't think so!
You're right about one thing: venting helps little. But specific legal actions may. I know they are not sufficient; but unfortunately they may be necessary in this case.
A "few thousand dollars" might be a fortune to some people while to other of us it is just a lesson. The point is to make WG accountable for what they have done.
I would suggest that we contact any web site having WG advertising and indicate to them that they are helping commit fraud by permitting WG to make their fraudulent claims.
I do believe that WG is about to sink and we are all without a lifeboat but we should at least make an effort, if nothing more than to doggie paddle.
What is especially bad, is that not only customers who bought from WG during the time they were using NWIG as the Administrator are affected. But several people who bought policies from WG prior to that, had their contracts sold from that Administrator to NWIG, so now they are in the same boat as us. I imagine the only older customers not to get caught up in it like that, were the ones very close to the end of their contract, at the time WG switched to NWIG.
Then, all the people who have bought since WG switched from NWIG to the current administrator, may be stuck if this whole debacle winds up putting WG out of business.
I have a WG warranty on my wife's 1999 car that was originally with another insurer. A couple of years ago WG sold those policies to NWIC so now I have that worthless policy in addition to being out the money for my 2003.
Here's what some dipstick at WG (claims dept) told my husband and then he told me: This guy told my husband once all the assets are unfrozen that WG just automatically will switch us to the new adminstrator but can't be done until assets are unfrozen. I had him call the guy back and double check that. Here' my husbands email to me: I called John Dean back again, he said we would definitely just be switched over, and that once that happened, that we would be notified by mail. I know it means nothing now, just telling you what he said.
John Dean, @ NWIG - 877-262-8765, x2340 on 8-25-03 at approximately 11:45am CST.
IF ANYONE BELIEVES THIS I HAVE SOME SWAMP LAND IN FLORIDA TO SEND YOU.
Well I think they mean if the assets are unfrozen and WG gets them back, then they will be turned over to a new administrator and your coverage will be moved to the new administrator. It's possible this may happen, but it doesn't look too good, because in order for it to happen, WG will have to get the bulk of their funds back first, and that doesn't sound too likely.
Which begs the question: if WG receives only a portion of their funds back - even just 15cents on the dollar - I wonder what criteria they will use to decide who gets what? That is, if they can re-warrant only - say - a few hundred customers, how will they select those customers? ummmm
or - I wonder if they would have the gaul to pay - first- all their legal bills; and then compensate their own executives through bonuses for doing such a wonderful job in "minimizing the impact" of this situation, and leaving - gee - not anything left for their customers. I can imagine reading the letter now - assuming they even send one out: Dear Customer, after expenses incurred I regret to inform you .... blah blah blah.
Boy - won't the press - and hopefully the Attorneys General of a few states - love to hear about that turn of events!
I understand that the WG-NWIG saga is a continuing/developing story and there are a lot of consumers that are upset and angry over the turn of events. As such, I've been a bit more elastic as far as the Town Hall rules go. But please remember that blatant slander is not allowed, and your language needs to remain civil, or posts are subject to deletion. Thanks, and hope this all gets rectified to some satisfaction for those affected.
I bought a 5-year/100,000 contract in January 2003. Now I have a few pending claims for about $1400 and am requesting pro-rated refund as I do not believe they are being honest with their customers. Like some of you, I only found out about these when I submitted a claim in July.
Just to remind you though, "Warranty Gold" IS the one sells us the contract, not NWIG. I have asked WG what are they planning to do in order to fulfill their contract in the future, I have not received any answers. I have asked WG what if the thing happened again with their current administrator, what do they do to protect those customers, I have not received any answers..There is no guarantee and we have no protection what so ever. My last payment was charged on June 22, while they switched the administrator on June 9th, I asked what happened to that part of money, I have not received any answers.
Yes, we 'might' get some money back if those fund is "unfrozen" but if WG don't get enough money back from NWIG, what then?....
We should all submit complaints via those web site jayzze74 included in the messages....Write to websites listed WG as their partner to let them know WG is having problem and not paying claims.
1. If you buy a new contract, you're probably OK, assuming (and I know that's an assumption) that the new administrator is financially solvent. 2. WG definitely did a poor job of choosing a vendor when they selected NWIC. Trying to get a refund out of WG until the NWIC bankruptcy proceedings are completed is futile (your credit card company is a different matter) - WG doesn't have the money, it's tied up at NWIC. 3. Driving WG into oblivion through negative publicity might make you feel better, but it won't get you your money back - if anything, it'll _reduce_ the liklihood that you get something back. 4. When buying a warranty, remember that you're buying an insurance contract, which is dependent on the financial viability of the organization writing the contract. Bottom line? A manufacturer's warranty is the best way to go. Not perfect, granted, but for it to be invalid, the company itself would have to liquidate (not just restructure a la Chapter 11, but liquidate), and that's an unlikely outcome for a major automaker.
i hear a lot of talk about how manufacturer extended warranties are better and that we'd have been better off buying those, but i have a question: i own a hyundai that i purchased used. apparently the original warranty is non-transferrable, so how would i go about contacting hyundai to purchase an extended warranty? i have searched high and low and i simply cannot find an answer.
Someone in this thread mentioned about sitting back and relaxing... Sure, if someone hands me my money due to me, I assure you I will not only sit back and relax, but also go to sleep and have happy dreams.
Till such a time, I am going to be writing to all possible and complaining. I wonder whether the Austin TV stations have brought up the WG/NWIG fiasco?
While members are focusing on the WG problem, should you not be studying vehicle maintenance and theory, to try to avoid mechanical failure since you are not covered.
LOL. thats EXACTLY what i am doing here on the EDMUNDS.COM website. i have found so much helpful info/links concerning my car/maintenance. THANKS EDMUNDS.COM!!!
Please tell me most of your emails are just sarcastically funny. If not, do you work for WG? If so, best be finding a job soon. If I could avoid mechanical failure I'd do it. Sorry to be a smarty pants but I'm basically out $4000. Nobody is getting their money back and for now it makes me quite happy to run WG out of business. They are lying to people still. It's terrible. I for one am not going to sit back and take it.
Besides all the other actions mentioned in this thread, I recommend each victim of Warranty Gold go to ripoffreport.com and place a report of their situation.
One caveat, their website is slow for only loading mostly text and small icons.
#166 of 852 Stay away from Warranty Gold by xxxxxxx Feb 28, 2000 (2:03 am) I just discovered this site and wanted to alert people to avoid Warranty Gold and give everyone the example of my experience as why the company cannot be trusted.... I bought a policy for my used Mercedes in 1996 and drove the car for almost 2 years when the transmission failed in Oct 1998...thinking I had a valid warrantee to cover me for the risk....HERE IS MY EXPERIENCE>>>> Warranty Gold and their outside administrators made me wait 3 weeks arranging inspection, then they kept setting a list of documents they needed from me to verify proper servicing, servicing of the car by the previous owner etc... after passing all the items they always had an additional item they wanted. Finally they just claimed wear and tear and overheating and refused the claim.I had a letter from Fletcher Jones Motor Cars(the Mercedes Dealer) explaining on record that they had never been jerked around so much by an adjuster. I had alternative mechanics telling them the reason the transmission failed could not be their explaination of overheating which is one the "excluded items in my coverage" My Warranty Gold policy cost me $2295 for a 7 year, 100k miles coverage. It cost me $2900 to repair the transmission. Fortunately for me Citibank Master card reviewed my 30+ pages of service records, letters from the dealer etc and decided themselves to reverse a 2 year old credit card charge and give me my money back.... However as you can imagine, the time, aggravation, and almost $700 out of pocket cost me dearly even if I did get the policy cost back. Warantee Gold is not a fair corporate citizen. They hid behind an outside Administration firm which uses subcontractor inspectors who try to deny claims. That is my experienceBeware if you think you can trust Warranty Gold. Think about it....... A warantee is no good if they try never to pay...
I wrote an email to BBB Central Texas, since they took down the former Warranty Gold page they used to have and replaced it with a "page under construction" type of message. There is no indication of anything negative, so I thought any newcomers may get the wrong idea.
From: "info@austin" <info@austin.bbb.org> | This is spam | Add to Address Book To: me@yahoo.com Subject: Re: warranty gold Date: Tue, 26 Aug 2003 09:34:46 -0500
The report is currently being updated so that we may provide some information on the company. We apologize for the inconvenience but request your patience as we attempt to complete the update. The report should be available by the end of this work week. Thanks--
----- Original Message ----- From: <me@yahoo.com> To: <info@austin.bbb.org> Sent: Monday, August 25, 2003 9:36 AM Subject: warranty gold comments: > You need to get something, anything, up on these guys. They finally took your logo off their site, but they deserve a mention. Surely you have heard of their problems, it demands some mention on your site. Many people are still being decieved by your omission here. > RefererPage: > http://www.centraltx.bbb.org/commonreport.html?compid=98013592 >
I just went to the FBI Internet Fraud web site and filed a complaint. I cannot say that what WG is doing is criminal and that is why I filed. Let the authorities make that decision. At least I have the satisfaction of doing all I can to see that I can recoup my money or prevent someone else from being suckered.
I have visited classactionamerica and wonder what if anything we would gain with their assistance. If they are a private law firm then the attorneys make most of the settlement money?
Is their a nonprofit consumer group we can turn to? How about Consumers Union?
I bought a 5 year/150,000 mile Diamond warranty for $2,800 in April. Fortunately I went on a payment plan so I've only paid about $1,400. I've told WG that I don't want to cancel but I'm not paying them any more.
However, I am going to pay the remaining $1,400 into an escrow account. I've told them that if they are successful in getting their money back from the Cayman Islands, an iffy proposition, and they honor their contract, then I would turn over the escrow account.
A class action lawsuit will do absolutely nothing other than enrich a few greedy lawyers and likely push WG over the edge into their own bankruptcy. This helps no one, least of all those of us who purchased warranties before WG changed administrators. If they go belly-up we get nothing. If you pursue a class action suit you will get peanuts, at best.
Although I won't give them any more of my money, absent a guarantee of performance, I am willing to give them a chance as it appears that WG may be a victim also. Who knows, maybe they will get enough back from NWIG to honor the warranties. Of course, if it turns out they had an interest in National Warranty then all bets are off and I hope they all go to jail! Just MHO.
Give me a break. Oh well, companies just come and go. Yeah, but this one left with me holding a $4,000 repair bill and I am sorry but some of us don't have that kind of extra cash sitting around. I used every bit of savings I had to buy the freakin' $2,000 warranty so I could have peace of mind. Worst of all, nothing was ever sent to me to notify me of their situation. I had the pleasure of finding out from my mechanic today. To top it off, the rep at WG said "Well, life isn't fair sometimes is it". It is a blessing that I don't live anywhere near Austin, TX right now!
We are in the bad position of having to break the bad news to our customers who come in thinking they are covered. We probably had at least 18 customer who used WG or other service insurance contracts that are now in trouble.
We started warning customers 12-18 months ago that things seemed different in our conversations with these companies.....to get what they could get now. As they started to send out inspectors late and become more and more picky and resistive to repairs........wanting used parts etc. refusing our $70 labor rate forcing the customers to pay the $12 difference, etc.
As an independent much of our business is after the factory warranty expires so we get more external insurance companies. But then again the Lexus and Infiniti are all high mileage units [100k-300k]........way beyond what insurance covers.
If you get too worked up, your life will be miserable.
Look, if WG goes under even their current contracts could be in jeopardy. I recommend AA Warranty, read my post, post #6 in this thread: "Anyone know about Warranty Wizard?"
I personally think most extended warranties are drastically under-priced for the amount of coverage people expect and get. With labor costs constantly rising, along with the markup on parts...I really dont see how a 1200 dollar average policy would be able to withstand just 1 major repair, never mind multiple. Obviously with a warranty...there is no pressure for the consumer to bring their vehicle in and have it inspected for a possible problem.
To the none covered consumer, they probably would be more inclined to just drive their vehicle until something went or the issue just got worse.
I'm not knocking extended warranties, but I purchased a $1400 policy for 5yrs/150k miles of coverage and ended up making out on the deal. WG's administrators ended up paying nearly 10k in claims for my previous car.
Many of the claims, I just brought my car in for a minor sympton and ended up being diagnosed as a expensive repair. To this day...my 98 eclipse spyder with over 150k miles, continues to run like a champ thanks to WG.
I personally feel this extended warranty BOOM is over. I dont believe an interest bearing account of any kind could have saved NWIG. Theres a reason why they went under in the first place and i believe they just couldn't afford to pay out the claims anymore.
I will probably end up not purchasing another extended warranty policy ever again and just end up using the money saved towards maintenance. I'll keep my fingers crossed in the process. I'll have the peace of mind knowing I dont have to deal with a possible worthless contract someday, a denied claim, or any other hassles associated with having a extended warranty.
There is a reason even factory true extended warranties stop coverage at 100,000 miles. They know in advance where the weak cost saving parts are! Whereas non factory acuraries are guessing on historical data......how does this help with a new model?
I too received over $9,000 in replacements on a $1200 extended service insurance contract....TRW stopped writing polices 2 years after I bought mine less than 4 months after mine expired in 1997, they closed the divison on 12/97. They lost an average of $3,100 per policy on my brand [from the annual report details].
It only takes a few miscalculations to trash a business........why Range Rover 100k policies [If you can find one] were $4450 the last time I looked.
I definately do not recommend you buy the policy on your Explorer from Warranty Gold. When I first purchsed my contract it was through Warranty Gold and not NWIG, it was another claims administrator. They changed administrators without my knowledge and went with NWIG, now look where I am - holding 2 worthless policies and a $1700 repair bill. These people can't be trusted to stand behind you and besides that with all the turmoil going on they may be forced into bankruptcy themselves. It wouldn't surprise me to read that they filed for bankruptcy in the near future - then your policy would really be worthless and you would be in the same boat as the rest of us. I can't help you with a recommendation of another comapny as it is too late for me to get another policy so I haven't bothered to research it. I also have no money left. Hopefully, someone here can recommend a reputable company for you. JMHO. Good Luck!!!
Like many others here, I had 3rd party extended warranties, prior to WG. Both of those were great and I got a lot more dollars worth of maintenance than I paid for either contract. This WG debacle is my first real experience with a "bad policy". At least I was smart enough not to pay them anymore money after I heard about the problems. And I was also fortunate that this all occured just 4 months after I signed up with them, or I'd have been out a lot more money.
I just want everyone to know my husband and I had our pictures taken by the Chicago Tribune today with our cars and our warranty contracts. I'm not asking anyone to subsribe to the newspaper just be forwarned to look for some article on this in the future. I'm trying to word my emails better so they don't get deleted again for promoting anything. Good luck to all, I plan on making tons of noise to anyone who will listen. I'm already out my cash and don't want to see anyone else out some money.
I purchased a 5/100 diamond warranty for my wife's jeep in mid may 03. I placed a down payment and started paying 10 installments through my credit card in June. I had a malfunction that needed repaired and I was under the impression that the warranty would cover it. I almost went through the roof when my wife called and told me that the company would not cover it. I already called the credit card company, filed a complain with the TX Attorney general, and the Licensing office as well as the BBB. I cant believe they are still selling warranties. What really irks me is some "secrets" that I got from their web site today, and I quote "Who really owns your warranty? Who really has your money?
You need to know about the "transfer of risk" associated with warranties. A transfer of risk is when the dealer pays money to an administrator that sets up "reserves." These reserves are used to pay for repairs. Why is this important?
Some dealers DO NOT pay into the reserve, they do not "transfer the risk". They are gambling with your money. Your warranty is then only as good as the financial status of the dealership. If they hit hard times, your warranty is in jeopardy.
If the dealer hasn't "transferred risk" to an administrator that maintains an excellent claims paying ability and the dealership is sold OR GOES OUT OF BUSINESS, you're out of a warranty, and you're out of the money you paid for that warranty.
jhungness, I saw the article this morning, Way to Go!!!! I was unaware that Warranty Gold was notified of NWIG's financial problems as early as the end of 2002. That makes me even more upset that they were given fair warning and could've moved our money. I believe this constitutes gross negligence on their part. Hopefully, this is just the beginning of the influx of press about this situation. They need to be held accountable for their actions. Hope this doesn't break any rules on this forum, if it does feel free to delete.
i got interviewed, too, joann. and they took some pics yesterday. this is going to start a big chain of complaints. think of how many people who DIDN'T know that their warranty with WG is worthless!! well, now they know, and now THEY will be shouting from the rooftops!! perhaps this will FORCE WG to make good on the contracts that were written. (wishful thinking, i know)
thanks, rick popely, for listening to the little guy.
lsdptl, your post is fine. For the record, we draw the line when members post links or information to solicit lawsuits, or post personal contact information (e.g., names, phone numbers) other than their own. Posts expressing legitimate questions and concerns are the reason these sorts of discussions exist!
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I have to differ with you. As long as the information you post is factual and non-defaming I feel we should post. Is it better that some poor, unsuspecting person gets lured into buying a WG warranty?
careful?! about what? i don't think that WG has special agents that they send out to "take care" of disgruntled customers posting on some messageboard. (besides, they couldn't afford it, anyway. LOL). POST, PEOPLE!! POST!! SHOUT FROM THE ROOFTOPS!! i'm mad as h__ and i'm not gonna take it anymore!! WOOHOO!!
I am very pissed to find out, based on the info about the article posted above, that WG knew there were problems with NWIG back in late 2002. I bought my plan in Feb. 2003, and if they'd have been above-board and honest, and disclosed this information, I would have taken my business elsewhere. This clearly shows they were culpable in defrauding customers and should be made to pay!
I cannot stress to everyone how important it is that this company be reported to every available agency, as a few of these agencies must see a pattern before they will investigate. Please report them to your Attorney General's Office, the FBI Internet Fraud Bureau, Consumers Affairs, BBB, RipOff Reports, Your local newstations, your newspapers. I personally believe that they are still taking money from customers who purchased their policies before June 9, 2003 and are not telling them to stop their installment payments, I have heard of too many incidents of this happening. I for one will not stand for this. I will voice my opinions loud and clear to anyone tat will listen to stop this company. I have emailed 20/20, Dateline, 48 hours, 60 minutes and Primetime. Some may think this is going a little overboard, but to just sit back and them them continue to sell and collect monies on policies while they are not honoring their former obligations I find unconscionable. Especially after they knew of problems since 2002. I will do everything I can to see that another consumer is not defrauded in the way I was. I am now stuck with losing $4300, and that is just the tip of the iceberg I am sure. I have 2 cars that I cannot purchase warranties on because they are now out of their original manufacturer warranty. Now I am faced with the decision of perhaps trading in cars and being upside down as we cannot afford another car repair bill like the one we have just received. We are a family of 5 who depend on our cars to get us work and back so we can afford our home and food. If we have another repair bill we may not be able to fix the car and then what???
Please report these people so we can stop them before they file for bankruptcy after hiding whatever monies there are available for us. For instance, where have they placed the money they have collected on policies issued before June 9,2003 and after they switched claims administrators? They cannot possibly putting that money in the same Trust Reserve that was used by NWIG, so where is that money that they are collecting on policies that are no good??
As far as them watching the boards, go ahead!!! Let it be known that your customers will not stand for this kind of treatment. You will be taken care of through all avenues that the law allows us and I for one will pursue every legal avenue of retribution available to me and urge everyone else to do the same!!!
Thinking about a Saab and extendeded warranty. Any one ever hear of a company called America's choice or is the plan through AAA any good. America's Choice is an outfit in Pennsylvania. Any ideas before I make a mistake.
I filed complaints with the BBB and Texas attorney general. I also contacted my Visa company and explained the situation to them. I faxed them all the info and they seemed fairly confident that I would get a refund. I purchased 2 warranties (ok, 'service contracts') from WG last Sept and Oct for $2800. I thought I did a decent job in researching these warranty companies before I made my purchase. If I would have known that NWIG was actually based in the Caymen Islands I probably would have went with the manufacturers plan. If I get anything back from Visa I'll post it here. I should get a response in 4-6 weeks.
I sent a complaint to Texas Atty Gen and filed a report on Rip-Off Reports. Not sure of how to file to the other agencies you mentioned, could you provide addresses, links, procedures, (For example, Texas AG you have to submit a specific form, with copies of your contract, etc.).
Also, for the media outlets you mentioned, can you supply email addresses. I will then send in complaints to all of them. Fortunately, I already have a Word Document detailing my curcumstances.
Comments
the monies paid into your account were received and held by NWIC. funds held by NWIC are frozen until the banruptcy proceedings are finished. so it is impossible to write a new contract for the new owner of your vehicle. thank you and have a good day.
i am just as mad as you are about this (maybe i have some irish blood in me. LOL). they are going to weasel and squirm their way out of giving you any sort of equitable satisfaction. let me be the first to welcome you to the chorus. (are you a soprano, or baritone?)
What is interesting here is that I am not seeking any funds from NWIC ... only that WG honor their own contract with me. NWIC did not promise me to transfer the warranty. I don't need any funds from NWIC to pay for a claim. I'm "simply" asking WG to issue a contract to the new owner for the time remaining on my contract with them ... as agreed to in the contract. NWIC does not even enter the picture, as far as I'm concerned. WG - not NWIC - gave no indication (in early July) whatsoever that transferring the warranty would be problematic. As noted before: they even faxed the necessary form to me. If in fact they were hindered from issuing a new contract at that time, it was incumbent on them - I argue - to offer a full disclosure. By failing to do so, they knowingly allowed me to enter into a transaction that was inherently flawed. If that is not illegal, then I'd be very surprised.
If I don't hear from WG soon with a substantive response to my inquiry and proposal for resolution, I'll retain an attorney to discuss the dispute with them. Does anyone have any experience to know if this awakens them?
Besides WG there are 1.5 million OTHER ESC policies in trouble at this time.
Members are having heart attacks over a measly few thousand. Sit back and relax.
Venting helps little.
I entered into a contract with WG - not some Cayman Islands off-shore company - and I will use every legal resource to ensure that they meet their contractual obligations.
WG is hardly broke. Just check out their web-site. Does it appear to be a broken company? I don't think so!
You're right about one thing: venting helps little. But specific legal actions may. I know they are not sufficient; but unfortunately they may be necessary in this case.
I would suggest that we contact any web site having WG advertising and indicate to them that they are helping commit fraud by permitting WG to make their fraudulent claims.
I do believe that WG is about to sink and we are all without a lifeboat but we should at least make an effort, if nothing more than to doggie paddle.
Then, all the people who have bought since WG switched from NWIG to the current administrator, may be stuck if this whole debacle winds up putting WG out of business.
I called John Dean back again, he said we would definitely just be switched over, and that once that happened, that we would be notified by mail. I know it means nothing now, just telling you what he said.
John Dean, @ NWIG - 877-262-8765, x2340 on 8-25-03 at approximately 11:45am CST.
IF ANYONE BELIEVES THIS I HAVE SOME SWAMP LAND IN FLORIDA TO SEND YOU.
or - I wonder if they would have the gaul to pay - first- all their legal bills; and then compensate their own executives through bonuses for doing such a wonderful job in "minimizing the impact" of this situation, and leaving - gee - not anything left for their customers. I can imagine reading the letter now - assuming they even send one out: Dear Customer, after expenses incurred I regret to inform you .... blah blah blah.
Boy - won't the press - and hopefully the Attorneys General of a few states - love to hear about that turn of events!
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Just to remind you though, "Warranty Gold" IS the one sells us the contract, not NWIG. I have asked WG what are they planning to do in order to fulfill their contract in the future, I have not received any answers. I have asked WG what if the thing happened again with their current administrator, what do they do to protect those customers, I have not received any answers..There is no guarantee and we have no protection what so ever. My last payment was charged on June 22, while they switched the administrator on June 9th, I asked what happened to that part of money, I have not received any answers.
Yes, we 'might' get some money back if those fund is "unfrozen" but if WG don't get enough money back from NWIG, what then?....
We should all submit complaints via those web site jayzze74 included in the messages....Write to websites listed WG as their partner to let them know WG is having problem and not paying claims.
2. WG definitely did a poor job of choosing a vendor when they selected NWIC. Trying to get a refund out of WG until the NWIC bankruptcy proceedings are completed is futile (your credit card company is a different matter) - WG doesn't have the money, it's tied up at NWIC.
3. Driving WG into oblivion through negative publicity might make you feel better, but it won't get you your money back - if anything, it'll _reduce_ the liklihood that you get something back.
4. When buying a warranty, remember that you're buying an insurance contract, which is dependent on the financial viability of the organization writing the contract. Bottom line? A manufacturer's warranty is the best way to go. Not perfect, granted, but for it to be invalid, the company itself would have to liquidate (not just restructure a la Chapter 11, but liquidate), and that's an unlikely outcome for a major automaker.
Till such a time, I am going to be writing to all possible and complaining. I wonder whether the Austin TV stations have brought up the WG/NWIG fiasco?
If so, best be finding a job soon. If I could avoid mechanical failure I'd do it. Sorry to be a smarty pants but I'm basically out $4000. Nobody is getting their money back and for now it makes me quite happy to run WG out of business. They are lying to people still. It's terrible. I for one am not going to sit back and take it.
One caveat, their website is slow for only loading mostly text and small icons.
I just discovered this site and wanted to alert people to avoid Warranty Gold and give everyone the example of my experience as why the company cannot be trusted....
I bought a policy for my used Mercedes in 1996 and drove the car for almost 2 years when the transmission failed in Oct 1998...thinking I had a valid warrantee to cover me for the risk....HERE IS MY EXPERIENCE>>>>
Warranty Gold and their outside administrators made me wait 3 weeks arranging inspection, then they kept setting a list of documents they needed from me to verify proper servicing, servicing of the car by the previous owner etc... after passing all the items they always had an additional item they wanted. Finally they just claimed wear and tear and overheating and refused the claim.I had a letter from Fletcher Jones Motor Cars(the Mercedes Dealer) explaining on record that they had never been jerked around so much by an adjuster. I had alternative mechanics telling them the reason the transmission failed could not be their explaination of overheating which is one the "excluded items in my coverage"
My Warranty Gold policy cost me $2295 for a
7 year, 100k miles coverage. It cost me $2900 to repair the transmission. Fortunately for me Citibank Master card reviewed my 30+ pages of service records, letters from the dealer etc and decided themselves to reverse a 2 year old credit card charge and give me my money back.... However as you can imagine, the time, aggravation, and almost $700 out of pocket cost me dearly even if I did get the policy cost back.
Warantee Gold is not a fair corporate citizen. They hid behind an outside Administration firm which uses subcontractor inspectors who try to deny claims. That is my experienceBeware if you think you can trust Warranty Gold.
Think about it.......
A warantee is no good if they try never to pay...
From: "info@austin" <info@austin.bbb.org> | This is spam | Add to Address Book
To: me@yahoo.com
Subject: Re: warranty gold
Date: Tue, 26 Aug 2003 09:34:46 -0500
The report is currently being updated so that we may provide some information on the company. We apologize for the inconvenience but request your patience as we attempt to complete the update. The report should be available by the end of this work week. Thanks--
----- Original Message -----
From: <me@yahoo.com>
To: <info@austin.bbb.org>
Sent: Monday, August 25, 2003 9:36 AM
Subject: warranty gold
comments:
> You need to get something, anything, up on these guys. They finally took your logo off their site, but they deserve a mention. Surely you have heard of their problems, it demands some mention on your site. Many people are still being decieved by your omission here.
> RefererPage:
> http://www.centraltx.bbb.org/commonreport.html?compid=98013592
>
Is their a nonprofit consumer group we can turn to? How about Consumers Union?
However, I am going to pay the remaining $1,400 into an escrow account. I've told them that if they are successful in getting their money back from the Cayman Islands, an iffy proposition, and they honor their contract, then I would turn over the escrow account.
A class action lawsuit will do absolutely nothing other than enrich a few greedy lawyers and likely push WG over the edge into their own bankruptcy. This helps no one, least of all those of us who purchased warranties before WG changed administrators. If they go belly-up we get nothing. If you pursue a class action suit you will get peanuts, at best.
Although I won't give them any more of my money, absent a guarantee of performance, I am willing to give them a chance as it appears that WG may be a victim also. Who knows, maybe they will get enough back from NWIG to honor the warranties. Of course, if it turns out they had an interest in National Warranty then all bets are off and I hope they all go to jail! Just MHO.
We are in the bad position of having to break the bad news to our customers who come in thinking they are covered.
We probably had at least 18 customer who used WG or other service insurance contracts that are now in trouble.
We started warning customers 12-18 months ago that things seemed different in our conversations with these companies.....to get what they could get now. As they started to send out inspectors late and become more and more picky and resistive to repairs........wanting used parts etc. refusing our $70 labor rate forcing the customers to pay the $12 difference, etc.
As an independent much of our business is after the factory warranty expires so we get more external insurance companies. But then again the Lexus and Infiniti are all high mileage units [100k-300k]........way beyond what insurance covers.
If you get too worked up, your life will be miserable.
"Anyone know about Warranty Wizard?"
Obviously with a warranty...there is no pressure for the consumer to bring their vehicle in and have it inspected for a possible problem.
To the none covered consumer, they probably would be more inclined to just drive their vehicle until something went or the issue just got worse.
I'm not knocking extended warranties, but I purchased a $1400 policy for 5yrs/150k miles of coverage and ended up making out on the deal. WG's administrators ended up paying nearly 10k in claims for my previous car.
Many of the claims, I just brought my car in for a minor sympton and ended up being diagnosed as a expensive repair. To this day...my 98 eclipse spyder with over 150k miles, continues to run like a champ thanks to WG.
I personally feel this extended warranty BOOM is over. I dont believe an interest bearing account of any kind could have saved NWIG. Theres a reason why they went under in the first place and i believe they just couldn't afford to pay out the claims anymore.
I will probably end up not purchasing another extended warranty policy ever again and just end up using the money saved towards maintenance. I'll keep my fingers crossed in the process.
I'll have the peace of mind knowing I dont have to deal with a possible worthless contract someday, a denied claim, or any other hassles associated with having a extended warranty.
I too received over $9,000 in replacements on a $1200 extended service insurance contract....TRW stopped writing polices 2 years after I bought mine less than 4 months after mine expired in 1997, they closed the divison on 12/97. They lost an average of $3,100 per policy on my brand [from the annual report details].
It only takes a few miscalculations to trash a business........why Range Rover 100k policies [If you can find one] were $4450 the last time I looked.
"Who really owns your warranty? Who really has your money?
You need to know about the "transfer of risk" associated with warranties. A transfer of risk is when the dealer pays money to an administrator that sets up "reserves." These reserves are used to pay for repairs. Why is this important?
Some dealers DO NOT pay into the reserve, they do not "transfer the risk". They are gambling with your money. Your warranty is then only as good as the financial status of the dealership. If they hit hard times, your warranty is in jeopardy.
If the dealer hasn't "transferred risk" to an administrator that maintains an excellent claims paying ability and the dealership is sold OR GOES OUT OF BUSINESS, you're out of a warranty, and you're out of the money you paid for that warranty.
Warranty Gold won't play games with your money".
NOW THAT IS SOME CREATIVE WRITING!!!!!
thanks, rick popely, for listening to the little guy.
kirstie_h
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Sure glad I got a GM factory ex-warranty on my last few trucks as I work them HARD and break some expensive parts !
Please be careful on what you post.....
Will post the how and why soon!
HOW SOON>>>>> As soon as they credit my charge card. I stupidly did not see this thread untill it was too late.
As Joe Friday used to say "Just The Facts Ma'am".
Please report these people so we can stop them before they file for bankruptcy after hiding whatever monies there are available for us. For instance, where have they placed the money they have collected on policies issued before June 9,2003 and after they switched claims administrators? They cannot possibly putting that money in the same Trust Reserve that was used by NWIG, so where is that money that they are collecting on policies that are no good??
As far as them watching the boards, go ahead!!! Let it be known that your customers will not stand for this kind of treatment. You will be taken care of through all avenues that the law allows us and I for one will pursue every legal avenue of retribution available to me and urge everyone else to do the same!!!
Sorry this post is so long!!!!
http://www.extended-warranty.info/nwig/nwig_email.asp
it helps explain, in laymen's terms what the he-- is going on/what really happened.
Also, for the media outlets you mentioned, can you supply email addresses. I will then send in complaints to all of them. Fortunately, I already have a Word Document detailing my curcumstances.