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smart choice warranty HELP !

2

Comments

  • daddybratdaddybrat Member Posts: 6
    I have been very polite in dealing with the head sales manager Zach. After he said he will look into the issue 2 months ago he will not only take my calls but will not pick up the phone. The poor receptionist has to hear me ask for this unprofessional individual who will not pick up the phone. Stevens Toyota has been the worst I have ever dealt with. If Zach would have said we can not do anything for you would have been ok,but not to respond is totally rude. Remember I was hung up on by the finance manager when I initially inquired. I have asked to speak to the owner but to no avail. I guess I need to go in person or try small claims court. I am not going to give up. I will call everyday now because they may end losing a sale if I can tie up the phone.
  • angelloveangellove Member Posts: 14
    Where did you find that list?
  • chaz1prochaz1pro Member Posts: 5
    Smart Choice is owned by National Warranty Insurance Group R.R.G. (NWIG). Headquarters had been in Lincoln Nebraska. Smart choice was marketed by Delta Group to most dealers in the U.S. SC&E was the re-insurer, which is owned by Yamagata Warrany, which is owned by Yamagata Industries, a $5 Billion Dollar Corporation out of Texas who should be ULTIMATELY responsible to the thousands of Smart Choice Warranty holders. The problem is that NWIG is a R.R.G. (Risk Retention Group), that operates out of the jusidiction of the United States. In this case the Caymen Islands. Good luck trying to find out whats going on. I ddi however, get a number in the Caymen Islands (345)949-8066 or (345)949-0100 and request an application to "file an affidavit for details" with the Caymen Courts. Also ask your selling dealer for the Delta Group representatives number that serviced their account or other if not the Delta Group. IMPORTANT...if you want to know if your dealer is responsible you need to find out if that dealer was an "obligor dealer" or a "non-obligor dealer". Obligor dealers (ones who sell more than 30 policies per month and have a service department) are Obligated to honor your warranty. Non-obligor dealers have no committment. Rick Piersol at www.journalstar.com is the only person trying to stay up with this. Go to www.nebweb.com/results.php and enter "nwig" for all recent articles or call the journalstar library at 402-473-7295 for past articles. Contact your State Attorney General and ask for assistance. The United States Attorney General can get results, and we need for this Office to ACT ASAP, so email or contact them. Good Luck all.
  • daddybratdaddybrat Member Posts: 6
    After my attempts to have repair service as you can read in my previous posts I finally got through. I went to Stevens Toyota website and went to "contact us". I wrote my saga in a note requesting it goes to the owner of the dealership and sent it off in the evening. The next morning I received an email back from the internet sales person stating they will pass it on. Within the hour I received a phone call from the maintenance dept. They now have my car which needs intake manifold work (had a vacuum leak, expensive repair) and it will cost $50.00 out of my pocket. Yes it has been aggravating, but it has paid off in being persistent. Stevens Toyota has redeemed themselves.
  • chaz1prochaz1pro Member Posts: 5
    nearly ALL vehicles have a 5yr/100,000 mile warranty from the factory on the exhaust system (includes manifold). Your dealer should not even charge you $50
  • mitzijmitzij Member Posts: 613
    Intake manifold, not exhaust manifold. Two different systems.

    I'm glad your dealer was good enough to help out.
  • scammedinpascammedinpa Member Posts: 29
    Chazpro, When you say, "IMPORTANT...if you want to know if your dealer is responsible you need to find out if that dealer was an "obligor dealer" or a "non-obligor dealer". Obligor dealers (ones who sell more than 30 policies per month and have a service department) are Obligated to honor your warranty". How sure are you about this general statement? Might it vary depending on the wording of the contract? My Dealership is a huge dealership in the Pittsburgh area. They have 5 locations, all of which have Service Dept's, so I'm sure they sold more than 30 Smartchoice policies per month, making them an "obligor dealer" according to your statement, but they said they won't honor the contract. And the contract does state "THE CONTRACT IS BETWEEN ME AND THE SELLING DEALER." However, it goes on to state "SOME OF THE SELLING DEALERS OBLIGATIONS MAY BE ASSIGNED TO SC&E ADMINISTRATIVE SERVICES, INC. Later, it states "FURTHER, I ACKNOWLEDGE AND AGREE THAT THE LIABILITIES OF THIS CONTRACT ARE WITH SC&E ADMINISTRATIVE SERVICES." (which is/was insured by...NWIG)
  • chaz1prochaz1pro Member Posts: 5
    Scammedinpa.....Each dealer signed an agreement contract with their agent. Chances are that your Dealer signed on as an Obligor Dealer if he is that big. Your attorney can subpoena the dealer to provide you with a copy of that. Also, if you know who your dealer's agent was, you can subpoena them to provide you a copy if your dealer is not cooperating or states he "can't find it". Delta Group is most likely the dealers agent. Delta Group owned SC&E and is owned by Yamaga Corporation. NWIG is just an administrator. Good Luck. P.S. To All....i'm compiling a list of numbers for Delta Group...SC&E...and Yamagata Warranty...Yamagata Corporations and their attorneys for all.
  • markpedleymarkpedley Member Posts: 1
    Has anyone heard of anyone winning their case in small claims against the dealer and winning? I'll probably try this before shelling out $ 4,000.00 for repairs
  • daddybratdaddybrat Member Posts: 6
    I found out today a company called Prizm Solutions has picked up some, not all of the warrenties from only certain dealers in the U.S.. There is no web site to check but here is the phone number of Prizm Solutions 1-800-445-4065. All you need to do is give them your policy number and hope your in the system. Good Luck
  • scammedinpascammedinpa Member Posts: 29
    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.
  • scammedinpascammedinpa Member Posts: 29
    Why would a company "pick up" these warranties? How do they make a profit? Who is paying them?
  • daddybratdaddybrat Member Posts: 6
    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 Member 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.
  • scammedinpascammedinpa Member Posts: 29
    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 http://www.sceadmin.com
  • deeleehdeeleeh Member 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 Member 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 http://www.nwig.com/Report%20to%20US%20Court%20and%20public.pdf this will assist you in letting you understand that the end is hopefull near. Also you can go to NWIG's website http://www.nwig.com/ 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 Member 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 Member 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 sales.it is our determination that further action by this office against the dealer is not feasible under the circumstances.
  • scammedinpascammedinpa Member 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 Member 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 Member 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.
  • scammedinpascammedinpa Member Posts: 29
    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?"
  • scammedinpascammedinpa Member Posts: 29
    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.
  • scammedinpascammedinpa Member Posts: 29
    I heard Ivan is headed straight for the Cayman Islands
  • ahlusahlus Member Posts: 8
    Who should I be looking at to supply me with a warranty.
  • dtownfbdtownfb Member Posts: 2,918
    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.
  • dipperousdipperous Member Posts: 3
    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.
  • dipperousdipperous Member Posts: 3
    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 Member Posts: 2,448
    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.
  • dipperousdipperous Member Posts: 3
    On August 7, 2002, I applied for an extended warrantee with Consumer Automotive Consultants. I spoke to a consultant of this company that sold me a 10 year or 100,000 mile warrantee for $2K bumper to bumper. I agreed to the contract with a payment plan of for 18 months but to lock in the deal, a small down payment. My last payment was debited on February 20th 2004. At this time of contract I was unmarried and now recently married. On August 13th, 2002, I received a letter congratulating me on my new warrantee and that my contract will follow in the mail. One month later, I did receive my three-page contract on legal green paper and an SmartChoice 2000 ENCORE brochure of what is covered and not covered. I read all my information and disclosures and was satisfied of the contract. On August 11, 2003, I received a letter from Consumer Automotive Consultants telling me that they had moved the processing of claims submitted to Automotive Consumer Services, Inc. On February 20th 2004, my last payment was auto debited from my account. Later on this same evening, I contacted Automotive Consumer Services, Inc. I asked if my account was paid in full and would I be receiving a confirmation letter. The rep reviewed my account and said that yes I was paid in full and that a letter will be sent to me of confirmation paid in full. A few weeks later, I received a letter in the mail indicating my account was paid in fill on 02/02/04 made to CACFinancial towards my service contract, they still indicated that my policy is the same as the previous claim company. The contract states that customers with this warrantee must have authorization from the company before going to the dealer. I went to my quarterly oil change and it was indicated to me that I need a part replaced on my vehicle at this time 04/15/05 and update my new last name on my account. I pulled out my paperwork and called the number listed. I happened to speak to a rep at a company named TheAutoWarrenty Division, that the same number I called in February 2004. He never heard of the company that I was calling about but his manager mentioned something about their contract being redirected again. I called 7 different phone numbers to look for my account; no one could help me or knew what I was talking about. None of the telephone numbers on my paperwork are valid to my contract or service. It seams that I have a contract that is not valid and I cannot contact anyone that I can discuss my warrantee, get my vehicle repaired with my warrantee, or even get a refund for my contract that I still have at least three years left.
  • mrdeemrdee Member Posts: 1
    I purchased a smart choice contract from a dodge dealer in 10/2001. The sales person originally told me the contract was goin cost me 15,000. But when I went to the person who did the paperwork he told me the contract was going to cost me 3000. I was desperate for a car because I had just had a child, so I agreed..The money was added to my car note. I realized that was a big mistake. I want to take them to court. What I want to know is does anyone know how much a contract like that should cost for a 1998 dodge stratus with 6700 miles on it? They charged me 3,000. I also forgot to mention that I sent a cancellation request to smart choice 6 months later when I found out about the company going bankrupt. I havent had any repairs on my car but counting interest $4000 was added to my car note what can anyone tell me
  • driftracerdriftracer Member Posts: 2,448
    there's obviously no limit on markup on the warranties....your question about what it should cost is VERY vague and has 200 answers, depending on level of coverage and length of contract.

    Also, there hasn't been any actual damage to you, financially, since you agreed to the contract (and price). The dealer isn't on the hook for Smart Choice.

    You haven't had any repairs, so no claims have been denied - if that had happened, you MIGHT have a breach of warranty action, but a lawyer isn't going to want to chase a bankrupt company and pay filing fees only to have to get in line behind everyone else...

    Sorry I couldn't give you cheerier news.

    Oh, and by the way, I haven't seen a state yet that allowed more than a 2 year statute of limitations on any civil action....your car deal is 3 years, 8 months old - even if there was a problem, you're out of statute of limitations, so you can't take any action.
  • beachbreezesbeachbreezes Member Posts: 1
    I had no clue there were any problems with this warranty until today. My service engine light came on, so I took it in to the dealer who sold me both the car and the extended warranty. They told me that that the extended warranty company had gone bankrupt, and that they were going to charge me $90 to "diagnose" the problem with the car. But, out of the generosity of their hearts, they did say that they would give me some kind of discount on whatever parts were needed. :mad: Is there any kind of lawsuit I could join against either the warranty company or against the car dealership itself?
  • beeferbeefer Member Posts: 1
    Wrong, driftracer. Most states have a statute of limitations of at least FIVE years for breach of contract, and often that's from the time of the BREACH.

    http://www.fair-debt-collection.com/SOL-by-State.html

    Nice try, though.
  • janmjanm Member Posts: 1
    I was trying to find some information on my warranty on the internet and ran across this message board. The dealer is giving me the run around on fixing my 2002 Honda, that needs a $950 part, I bought the Smart Choice 2000 --100,000 mile warranty. The service manager keeps saying he faxed my information to the company because they couldn't find it on their computer and will call me as soon as they decide if the part needed is covered---even though when they sold me the contract is was supposed to be bumper to bumper. Now I know, the service manager is telling me a bald faced lie and I'm mad as hell. I will be in contact with the management tomorrow and may sue in small claims court if they don't reimburse my money for a worthless contract and fix my Honda, will let you know of the outcome.
  • ealeal Member Posts: 2
    Is there a cancellation clause in your contract?
    Is the contract between you and the "selling dealer"

    Cancel the contract if you can (cancellation clause on back of contract) and sue in small claims for the refund (there was a formula for figuring out the refund on the contact) make sure you send everything by certified mail

    My dealer refused my refund and then tried to get me to prove I had done
    everything I was supposed to (oil change every 3000 miles etc.) they wanted
    to prove I had voided the warranty. I wouldn't send them anything.

    Sued them in CT small claims and won
    I refused to send them anything
  • alsotakenalsotaken Member Posts: 1
    Just had repair work done and repairman called to get covered for extended warranty and lo and behold - not in business. So I have been holding a non-existent contract for, it seems, over two years.
    I note that the contract is between me and the dealer but also states the bit about liabilites with this Contract are with SC&E Administrative Services and performance is insured by an insurance policy issued by National Warranty Insurance Company in Lincoln, NE. What a bunch of crap, just a way to keep passing the responsibility on to someone else.
    I bought this policy for $1895.00, along with a Dodge Durango for quite a few bucks more, in Lake Havasu City, AZ., at the Dodge dealership. They kept me there for 4 1/2 hours hoping they would finally weaken my determination to not be taken advantage of and it worked. I will be checking into their legal obligation and will post outcome here. Unfortunately, it has been my observation over the years that it is almost always the big boys with the big bucks that win in a legal matter.
  • len628len628 Member Posts: 1
    My car just broke down the other day and I pulled out my warranty which I purchased in 2002 and never used. Only to find out they went out of business. I purchased this warranty from CAC in Missouri not through a dealer. Did you ever get an answer from anyone on who may still process a claims? Or is this just a worthless $1600.00 document!
  • mckernaniiimckernaniii Member Posts: 12
    What are the best Dodge Dealer internet sites to get a good deal?
    :)
  • wlbrown9wlbrown9 Member Posts: 867
    A couple of years ago I used www dot chryslerwarranty dot com for a D/C Factory warranty on my Jeep. They are actually a part of Des Moines Chrysler. I was able to save more because I did not have to pay Tenn sales tax at 9.25%.
  • mnbmnb Member Posts: 1
    Hello I am a smart choice warranty holder and would like to know of any information regarding the warranties because I am just now finding out that my warranty is no good
  • nortsr1nortsr1 Member Posts: 1,060
    Too little, too late. Your first mistake was buying a non- Mfg. warranty.
  • mitzijmitzij Member Posts: 613
    Smart Choice did what many service contract companies do: made promises, took people's money in exchange for paper, then went out of business and skipped town.

    There may be a class-action suit you could join, but we all know how well those judgements pay the people who are actually out money. I don't remember if there is one for Smart Choice customers, but there is one for Warranty Gold dumpees (different company, same story).

    There have been a few people on this site who say they were able to get the dealer they bought the contract from to pay some or all of the bill on repairs that would have been covered. It would be worth a try, just ask the dealer before you get anything fixed. Don't march in with the bill and an attitude and expect help.

    Other than that, Congratulations! You are the proud owner of an expensive piece of paper!
  • fondapeters02fondapeters02 Member Posts: 1
    My SC2000 warranty came with a "no claim bonus" where I could get an 80% refund if I never made a claim on it in 3 years.

    My Buick Regal I bought in September 2002 has been flawless, so a month ago I started getting ready to claim my big refund ($1,000+), and discovered the NWIG saga. Mailed in all the refund info anyway to see what would happen, and I got a check for $135 from ProGuard International in Laguna Beach CA. They refunded the "application fee" since NWIG went out of buisness.

    I figure a 10% recovery on the dollar from a bankrupt firm ain't bad. :mad:
  • seal2005seal2005 Member Posts: 2
    My situation is excatly like yours. I don't know what do to. I called the Better Business Bureau last friday and they asked me to contact the DMV - Compliance and Investigations Department to get extra information about it. I also called the bank that financed my car :confuse: because if this company doesn't exist anymore I want to know who is receiving a portion of the payment of my car note that suppose to go to Smart Choice.
  • seal2005seal2005 Member Posts: 2
    My situation is exactly like yours. If you find out something about it please let me know. I called the Better Business Bureau last week and they asked me to talk to the Compliance and Investigation Dept. at the DMV to get more information. You should do the same thing.
  • kstum320kstum320 Member Posts: 5
    did you contact the dmv or the bank to find out who is receiving the money that was financed. i would be happy to file the same claims if it would do any good. as i had to just dish out 450.00 to get something fixed that should of been covered under the warranty :mad: ">
  • fronizzlefronizzle Member Posts: 1
    I have been trying to contact them with every number that I can find to CAC. I call one number 1-800-400-9118 and all I get is a busy signal for a few seconds and then it hangs up. Does Anyone know how to get a hold of these guy?
  • mandrewsmandrews Member Posts: 1
    did you ever find a way to contact, I am having the same problem
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