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Comments
http://www.brandstupid.com/shared-brandsmart-horrors.htm
1. NWIG does eventually disgorge all the money deposited with them AND
2. The money disgorged is enough to pay the claims.
I find 1 unlikely, and 2 EXTREMELY unlikely, since it looks like what happened is that NWIG lowballed their bid to be administrator, and claims exceeded revenues, causing them to file for bankruptcy. In that case, the monies paid to NWIG wouldn't be enough to satisfy the commitments, even if those monies were freed up.
Needless to say-I am quite relieved. Thank you GM Card. Thanks also to Edmunds and everybody who has kept us up to date at this forum. Good luck to everyone.
xpfshost
I purchased mine directly from WG for a used Lexus. What I did not realize at the time is that they sold me a "new" policy. So what does that mean exactly? Well, if I were to cancel and actually get a refund, it would be based on the number of miles I have on the car today to prorate against my 100K policy. So even though I purchased the contract when my vehicle had 45K on it, had I cancelled it a month later with 46K on it, I would only be due roughly half my money b/c it was written as a "new" policy.
Now does that seem like truthful operations?
Something else that has not been discussed is that for me to purchase a contract through another company now would cost me almost double what it would have cost me back when I made my purchase in 4/2003. In legal terms, we have been detrimentally affected due to this contract. I have also been told by counsel that you would more than likely win IF you could take this to small claims court, but who has the time, money or effort left in the after this?
This topic has got me thinking about compensation for victims here and with any type of insurance. Let's say that I find out that my insurer has been insolvent for the last year and has had no ability to pay claims. Let's also say that I have another year of "coverage" that I have paid for. Arguments about who owes what, etc, drag on for another year. Nothing goes wrong with my car during this time. Have I suffered any recoverable damages? I can understand someone whose car breaks and cannot have a claim fulfilled having a clear-cut case for the cost of the repairs. But if I never need to make a claim how is it determined what damages, if any, that I am owed?
xpfshost
So aside from the money lost with WG, I now have to choose if I want to be out more money by buying another warranty OR do I want to be out the peace of mind that I thought I had with my WG policy?
Not really great choices.
Funny thing is how they claim for those that paid by payments plans, they went ahead and funded all the money and that is why they can't pay any refunds until this is settled. I would have to question this statement.
For all those that seem to say: "help WG to stay in business",should look at it this way.... WG sold contracts for a profit... nothing wrong with that at all... but I doubt WG has lost hardly any money, only their customers have. They made a commission on the contract, they paid salaries, they continued to add to their bottom line everytime they charged a poor soul's credit card knowing the issues that they did not disclose till
months later. Have pity on poor WG, not on your life. I will survive this loss as most everyone else will. But the powers at WG will have to answer for this sooner or later.
No pity for theses people at all.
xpfshost
xpfshost, in your scenario, if the 5 year period is over and I never had to use your service, I would be thanking my lucky stars that nothing went wrong. Yes, I'd be upset if I found out you couldn't have provided the service, if needed, for the last 4 years. But I don't see how I could place a dollar figure on what I had lost. I still would've paid you the same $3000 either way.
It seems to me that this is the kind of product that may require government regulation to make sure that an insurer can actually perform if they are needed. As I said originally, it was just a hypothetical question.
Time for them to go... anyone out there in the legal profession??
First of all, my credit card company thinks so and they are reversing the charges for a policy that wasn't covered over a period of time that I made no claims. I filed a dispute and they clearly agreed that the WG situation was unjust.
Your question ignores the fact that WG is not notifying policy holders that they are not covered any more. They simply keep taking money from people on a payment plan or keep the payments received for a policy that they know will not be honored.
An insurance policy is a contract for a guaranteed outcome on a future event that may or may not occur. Just because the buyer was unaware that they were PUT AT RISK for financial burdens they paid to eliminate, doesn't mean nothing bad happened.
Let's apply your logic to a different situation. You take a flight from City A to City B. You arrive safely. When exiting the plane you notice the pilot is drunk. Are you going to ask "well, did anything bad really happen?" You are going to mad because you were put at risk - that's the point. Even though the outcome was acceptable, the underlying operation was putting you at risk. In this case, your physical well being is put at risk you did not know about or ask for. In the WG case, people's financial well being is put at risk without them knowing either.
Anyway, I have some insurance I'd like to sell you....................
Can somebody provide a direct phone # to the dispute department?
Thanks
Anthony
P.S. The main customer service number on the back of the card is useless as they only read the computer and have no input on the resolution of disputes/claims.....
I'm simply answering your question by pointing out that being put at risk despite paying to have that risk eliminated or limited is definable and measurable.
Your's is a good question. Sorry if I used the word "absurd". But don't toss out the "you missed my point" stuff. If you want to strictly define "real damage" as physical - well then yes,no damage if no claims are submitted. If you also include a financial loss (policy payment) for risk that was not limited as "real damage", then the answer is clearly yes.
How about laying off the condescending "you may return......" clever comments and addressing what I offered? I think they are good points to your question, and yes they do address your point of quantifying any "real damage".
And again, I've not filed a claim but GM card also thinks there was "real damage" - a financial payment for bogus risk management.
Your points are well spoken and exactly my thoughts I can just never get it to sound right. If I get denied I think I'll go back to some of your points and resubmit. I am also considering persuing the FCC and ITC since I purchased my policy based on Internet quote and telephone purchase.
I wonder if anyone else has thought of this course of persuit.
Ray T.
Thank you for your cooperation. As I mentioned before, we realize this is a very delicate subject for a lot of WG customers, but this forum can not become a "yellow pages" for those who wish to gain business from the situation.
kcram
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Can someone email me the lawyer website that was posted regarding a class action lawsuit? I know I'll never get anything from WG and my chances of getting anything from a class action suit are small, but I'd still rather see WG go under.... screw them!!!! My email address is mikefm58 at hotmail dot com.
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
To ALL others out there I strongly suggest you do the same, the old saying "strength in numbers" comes to play here. Warranty Gold needs to be put out of business for this sleazy way of operating. May not get my money back but doing them in will be worth it !
Ray T.
http://www.journalstar.com/business.php?story_id=90669
http://www.journalstar.com/business.php?story_id=80335
Why didn't SC&E keep control of their reserve funds?
They are not two in the same and the funds can not be thought of it all in one big pile. Just because NWIG is insolvent, does not mean WG can deny you access to repairs or your refund as they are trying to do. They can claim insolvency, which looks like to be an approach that might just happen.
I strongly believe a court of law will have to straighten this mess out as it is very apparent WG is not going to do the right thing, they can't afford to as it will possibly put them out of business. Not that it would break my heart.
Not that WG proabably has this type of insurance policy, but a friend of mine told me to ask WG for information on a certain type of insurance that most writers of insurance policies have to have (it's called and ERRORS AND OMISSIONS policy ). If they do have one, we may be able to file a claim against that policy.
When I asked the customer service rep for the policy information, I was put on hold for over 5 minutes. The rep was really nervous when he returned, and then told me I have to make my request in writing to their legal dept., and then they will get me the information in 5 business days. Well it's been 7 days now, but I'm not holding my breath that it will ever come.
At this point, I've talked to 4 different people, and I actually end up enjoying asking them if they feel good about themselves going to work every day. Then I throw out some legal jargon my friend said to me regarding this issue, and you can quickly tell they are so over their head in trying to answer my questions, it wouldn't surpise me if a couple of them had quit after that. The way I figure it, if I'm going to be out some money, I'm gonna get some entertainment out of it.
Most of you know this, but keep specific records of each date, time, and person you speak with at WG. Also, I've gotten 3 different reps to admit that they made a mistake not notifying customers sooner. That certainly won't help everyone, but for me, I was still in my cancellation window for a new contract, and would be entitled to a full refund (either voluntarily or through credit card dispute. It wouldn't suprise me if WG planned to wait 4 months after the 6/4 date to notify customers by email. This would help limit cancellations and credit card disputes I bet.
http://www.ag.state.mn.us/contact/Default.htm
for those of you that would like to see a picture of who has your money go to www.eautoworld.com and click on advisory board. About five pictures down is the CEO of WG. Its amazing what you can find on the internet!
I still want my money back, but I gotta say that I would like nothing better than to contribute to making WG fully acccountable for the recent events. If they go out of business or some "partners" go bankrupt then so be it. They should never have gotten themselves into this situation.
Someone brought up how much do we think WG actually paid NWIG for each contract. Consider this. A friend of a friend works at a car dealership. When they sell an extended warranty, they can get commissions anywhere from $500-1,000. Well my policy was only $1500, so how much of that do you think didn't stay in WGs pockets?
I'd be interested in joining a class action law suit. Please conract me at w3rhb@netzero.com.
Can contact me at djackson2200@charter.net
It's just so frustrating b/c I researched everything pretty thoroughly, and with WG claiming they had reserves in an account for claims, and claiming A- rating of their insurer, you had to figure WG was pretty legit.
Good luck to everyone else and their disputes. I will post if there is any reversal of the reversal. Has anyone had that happen...the credit card company reapplies the charges after the dispute is looked into?