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smart choice warranty HELP !
i purchased a smart choice warranty in 09/01 car broke down 05/29/03got repaired also recieved a claim number for the work done.i paid for work out of pocket now am waiting for warranty company to pay me back. i called about my claim and they are not paying claims,because of nwig anybody out there can explain this to me? or email me kstum320@yellowbananas.com i live in pa.
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Check out the website:
http://www.sceadmin.com
I have copied the info below:
SC&E LAUNCHED THIS WEBSITE TO KEEP SMART CHOICE CUSTOMERS, AUTOMOTIVE DEALERSHIPS AND AGENTS FULLY INFORMED.
SC&E Administrative Services, Inc. (“SC&E”) launched this website as part of its continuing efforts to keep customers that purchased Smart Choice Vehicle Service Contracts, and the automotive dealerships and agents that sold the Smart Choice program fully informed of significant events affecting the Smart Choice program.
Unfortunately, SC&E is unable to answer the literally hundreds of phone calls that come in daily given its limited number of employees, and therefore, has set up this website to keep you informed of the situation as it develops.
We apologize that we cannot take every call personally and answer your questions and concerns. SC&E understands the frustration felt by both customers and automotive dealerships alike. We are also very frustrated with the situation and we are dedicated to ensure that Smart Choice customers’ rights are protected. SC&E has been in the business of marketing vehicle service contracts for many years and has been at the forefront of customer satisfaction in the automotive service industry. We will continue to work hard on your behalf and keep you informed of our efforts.
QUESTIONS ABOUT YOUR SMART CHOICE SERVICE CONTRACT
Although we cannot answer every possible customer question, we have listed below a number of questions and answers about your Smart Choice Vehicle Service Contract.
Who is SC&E Administrative Services?
SC&E Administrative Services is an automotive service contract marketing company. Among other programs, SC&E marketed the Smart Choice program to automotive dealerships and others, who in turn, marketed and sold the Smart Choice program to consumers like you. SC&E has been in the business of marketing automotive service contracts for more than fifteen years and until National Warranty’s financial collapse, SC&E has always had an excellent customer service satisfaction record.
Is SC&E Administrative Services still selling the Smart Choice program?
No. Unfortunately, because of National Warranty’s Liquidation and the damage that the Liquidation has had on SC&E’s financial condition and reputation, SC&E is no longer marketing the Smart Choice program. Nevertheless, we are staying in business to help Smart Choice customers and automotive dealerships.
Who is National Warranty Insurance Group?
National Warranty Insurance Group (“National Warranty”) is an insurance company headquartered in Lincoln Nebraska that administered and paid claims in connection with the Smart Choice program and other automotive service contract programs. National Warranty is listed on your Vehicle Service Contract. National Warranty received millions and millions of dollars to administer and pay claims of Smart Choice customers. Until just recently, the A.M. Best Company, the premier insurance rating agency in the United States, gave National Warranty an “A-” Financial Strength Rating, signifying that National Warranty was in “Excellent” financial health.
Why has National Warranty stopped administering and paying claims?
Earlier this year, National Warranty filed for “Liquidation.” Insurance companies are unable to file for bankruptcy, and instead, are required to file for Liquidation. National Warranty is in Liquidation proceedings because it is unable to continue paying claims of vehicle service contract holders. After going into Liquidation proceedings, National Warranty stopped paying claims relating to the Smart Choice program and other similar programs.
Will National Warranty pay claims in the future?
Two individuals at KPMG, a well-respected accounting firm, were appointed as the “Liquidators” for National Warranty. KPMG is in the process of determining National Warranty’s financial condition and what will be the most reasonable and fair process of paying claims in the future. Once those questions have been answered, the Liquidators will set up a procedure for Smart Choice customers to file repair claims. At this time, it is unclear what percentage of claims will be paid. SC&E will work with the Liquidators to protect your interests. We will keep you fully informed of the ongoing Liquidation process and will post on this website the claim filing procedure once it has been set up.
What is SC&E doing to help Smart Choice Customers?
SC&E is working diligently to ensure that Smart Choice customers’ rights are fully protected. Recently, SC&E, along with automotive dealerships and agents that sold the Smart Choice program, successfully argued in the Nebraska Federal Court for the release of millions of dollars to automotive dealerships and agents for the payment of Smart Choice customers’ claims. Unfortunately, not all automotive dealerships received funds to pay claims, and therefore, you will need to contact the dealership or company that sold you the Smart Choice service contract to determine if it has received funds to pay customer claims. SC&E will continue in its efforts to help you.
If I own a Smart Choice service contract and my vehicle needs repairs, what should I do?
First, contact the automotive dealership or company that sold you the Smart Choice service contract to determine if it has either received funds to make repairs and pay claims or whether it has set up an independent program to make repairs for those customers that purchased their Smart Choice service contracts through that dealership. Many automotive dealerships have received funds and continue to make repairs for Smart Choice customers. Second, keep copies of your repair bills so that once a procedure for claims filing has been set up you will be able to submit your claim. Third, check this website periodically for new information relating to National Warranty’s Liquidation proceedings and the claims filing procedure.
How will I know when and where to submit a claim to National Warranty?
The Liquidators will likely create a claim filing procedure for Smart Choice customers who need to file claims. Once the claim filing procedure has been set up, SC&E will post the process and procedure on this website and assist in the process.
Car_man
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http://www.nebweb.com/business.php?story_id=95293 http://www.nebweb.com/business.php?story_id=95588
marcy
Source: Automotive News 7/4/03 - EDWARD LAPHAM COMMENTARY: Extended warranty troubles
"July 4 -- There has always been a question about the value of buying an extended warranty on an automobile. Most consumers don't realize that they can negotiate the price of an extended warranty, which makes them big-profit items for dealers.
But the game is changing. One of the big insurance companies that backs thousands of Smart Choice extended warranties sought protection from its creditors.
Now, some dealers say they aren't being reimbursed and are paying for customer repairs out of their own pockets."
Source: Automotive News 6/30/03 - Dealers caught in warranty war, Insurer's problems force tough choices
"Five thousand dealers who sold service contracts under the financially troubled Smart Choice program may have to choose between two evils - pay off hefty repair claims themselves, or tell angry customers to slug it out with insurers.
Either way, some dealers could lose....
The contracts, which can range from one-year to 10-year terms, cover repairs and parts for vehicles out of warranty. According to dealers, they sell a typical three- to five-year extended-service contract for $800 to $1,500. Some dealers may try to cancel the contracts because it may be cheaper to issue a refund than pay for a $6,000 engine job, says Kirk Borchardt, a Santa Barbara, Calif., lawyer who represents Smart Choice agents and their dealers....
Other Las Vegas dealerships are paying off repair claims, but they aren't happy about it. 'I am concerned we are going to be left holding the bag on 700 warranties,' says Tom Downer, COO of the Fletcher Jones Management Group. 'I won't believe anything until I see some claims money....'
Dealers face tough choices.
Customers could blame them for selling them a worthless contract. And if a dealership pays for the repairs as a goodwill gesture, it might be held legally liable for other contracts, says Mike Charapp, a Washington dealer attorney.
'The problem with starting to cover repairs is once dealers start eating repairs, where do they stop?'
That question worries Chicago dealer Jeff Jacobs, owner of Jacobs Twin Auto Plaza. When he started selling Smart Choice in 1996, the warranty looked rock-solid.
But in the last three weeks, Jacobs has paid $30,000 for customer repairs that should have been covered under the contracts. He stopped selling Smart Choice three years ago, but Jacobs still has 2,500 contracts outstanding. The company that insures Jacobs' dealership has told him the claims are not covered under his general liability policy.
'You are more likely to get claims as the cars get older,' says Jacobs, a multifranchise dealer with $150 million in annual revenues. Transmissions and engines can cost $3,000 to $7,000 to replace, he says.
If a dealer gets two or three such claims a month, he may end up spending $100,000 to $200,000 a year on repairs.
Says Jacobs: 'This is a snarled mess with no easy answers.'"
Again, there's no guarantee that they will work with you, but you don't have anything to lose, especially if you have a good relationship with this dealership.
Car_man
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I was not told this when I purchased the extended warranty, but was led to believe that this was an extended warranty from the General Motor Corporation on both vehicles. I have given the dealership 24 hours to pay the refund on the warranty. If I am not reimbursed by the dealership then I will take it to the news media.
Does anyone know if all General Motor dealerships use Smart Choice or if they are the only dealerships that use it?
Does anyone know if there is any legal class-action suit on this issue in behalf of the consumers?
The official extended warranty from General Motors is the GM Protection Plan, and you can read all about it at this link: GM Protection Plan website. Anything else is a third-party warranty, as far as a new GM vehicle is concerned. All manufacturer-backed plans have the manufacturer name and logo - GM Protection Plan, Ford ESP, DaimlerChrysler Service Contract, HondaCare, etc. If you're ever unsure, decline the dealer's offer and go to the manufacturer's website - you can always find out if they offer a factory plan and what its name is.
kcram
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Sorry about your troubles. Maybe now you'll actually read all those papers that you sign.
In addition, the dealer that sold me the policy is also out of business.
I have read that some monies have been allocated to dealers to pay claims. Anyone else in my situation without a dealer to contact. Any suggestions?
Re: someone's earlier post...
Not all GM dealers sell the same service contracts. None of them have to sell any. Probably all sell GMPP. If it's not GMPP, it's an independent company with a deal between the dealer and that company. Some dealers will back up promises made by the SCC, but they don't have to.
Check with your local STATE insurance commissioner.
The trade news was full of stories about dealers laying out hundreds of thousands of dollars to keep people quiet.
http://www.consumeraffairs.com/auto_warranty/smart_choice.html
http://www.autosafety.org/article.php?did=820&scid=93
my car has not needed any repairs and the dealer said for now they are covering it and then told me smartchoice was being sold ... I have not done anything since then, but it the meantime I am thinking I need to write the dealer a letter confirming they are covering any future covered repairs.
has anyone contacted the Insurance Commissioner in PA? I hope to do that this week.
marcy
And if you find out that they are taking care of their customers will you tell those dozens of people that you jumped the gun about bad mouthing them?
They may have changed the policy.
I know some dealers in Iowa are covering repairs for their customers.Some are sharing the cost.And some are doing nothing.
When this happened the Attorney General was not only notified by the customers but also by the dealerships.
For customers in Iowa they can go to www.iid.state.ia.us to see what each dealer is doing.
Maybe PA may have such a list.
As to getting money back or getting claims paid...wish much of you luck...Like playing the Lottery, all these years have not won yet...it seems that will be the case for many of you with this warranty...will not get to see anything or very little..
My suggestion is that keep on going back to the original selling dealer...even if you have to threaten to go to the attorney general...after all, they were the one that gave that company their recommendation,,,and they (the dealers) are the one that stood to make money on you.
Good Luck
Rob
That money is still in the hands of smart choice.
They plain and simple miscalculated the costs of the repairs [for the policies they sold]..[the reliability of the cars wasn't as high as someone calculated]....happens all the time in the business.
The decision was based on our belief that our customers come first.
We have told the customers that we will only cover the contract if service work is done here.
What gets me is that some people chew me out for this.Or say this is the last time we will ever buy a car from you again.
We are currently 80,000 dollars worth of un-paid claims.
We have 300 contracts that will be in effect for another 4 years.
We hope to see at least May's claims paid when they release the funds.
GE Capital went thru a similar issue afew years back but were able increase their costs on service contracts to offset the losses.
I not only have a worthless warranty, but repairs to my transmission have cost $2100 plus car rentals.
I have contacted the Office of the Attorney General for NY, Suffolk County Office and would advise anyone in this area to do the same. Perhaps if they get enough complaints they will do something about this.