"Warranty Gold" Claims

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Comments

  • 2crnot2c2crnot2c Member Posts: 27
    When one clicks on the link http://www.jewishworldreview.com/0903/warranty_liquidation.asp, the contents looks to be very similar to the article in the Chicago Tribune.
  • buyersoonbuyersoon Member Posts: 7
    File a claim with the BBB and FTC anyway. It can't hurt. I am mad because I never would have found out if I did not try to file a claim. They knew they had no money for a month but did not notify anyone. Like someone else said, they still say they have "reserves" in their FAQ. Do yourself a favor, copy their FAQs so it can be used as evidence against them.
  • msdickersonmsdickerson Member Posts: 5
    I got screwed the same way as most the others (1600$ time payment, and they still took my payments after June 2003). 2 things - WG stated emphatically that they had to have the cancelation form sent to them noterized and it would take 6 weeks or so to process it. What a crock. Anyway the New York Attorney General just sent me a reply to my complaint and it stated that Warranty Gold has ceased doing business and cannot be contacted. I am trying to confirm this, and will get back to the NYSAG office with my findings (just in case they called the wrong number .......) .

    PS - In NYS, you can legally dispute payments made up to 90 days after. I have and am waiting the results.

    Anyway - Edmunds should take some of the blame for this too as they accepted and sponsored advertisements and had links directly to the crooks at WG.

    Thank you
    Steve D.
    -1600$ and no coverage on our new RV.
  • sameerxyzsameerxyz Member Posts: 2
    I have already filed the complaint with BBB.

    How do you file with FTC?

    Also, I paid with credit card in 01/2000. Will the credit card company ever discuss a case that old and try to reimburse me?

    Thanks for all the replies.

    I wish I can at least recover the amount I paid for the extended warranty.

    I think warrantygold should stop selling extended warranties until they honor the old extended warranties.
  • redline65redline65 Member Posts: 693
    Anyone thought about taking WG to small claims court? I live in Texas, only a few hours from Austin. I'm assuming this is where I would need to go. Wondering if anyone can provide info on how to go about doing it, and what are the expenses involved. I would like to get my money back from WG before they go bankrupt, because then it will probably be impossible to get anything from them.
  • jhungnessjhungness Member Posts: 29
    Someone suggest checking into Nonbusiness Bad Debt for tax purposes.

    Here's the skinny: I talked to my tax person and they said that you can claim this on taxes as a Nonbusiness Bad Debt. You will need: Original contract, proof you paid it and then proof that it is useless.

    I told her there's no way WG is going to send anyone a letter saying: so sorry we screwed you and you're now out of luck. She says you don't need that. She says I can use my article that I was in, in the Chicago Tribune (others might be able to use the same article) then get a written statement from your mechanic saying that they called in to make a claim and service was denied because of NWIG being found insolvent.

    You won't get back all of your money, but whatever tax bracket you fall into is what you will get back. So if you fall into the 15%, 30% etc. you will get that percentage of the total amount up to $3000 for this year and then next year you can claim the rest if it is more then $3000. Call your tax preparer to confirm this. I use Jackson Hewitt.
  • mtwalletmtwallet Member Posts: 7
    by redline65 Sep 11, 2003 (10:36 am)
    "Anyone thought about taking WG to small claims court?"

    I am considering this option as we speak. For filing and service of subpoena the cost is $62. If WG's address is still on S. Mopac as on the cover of my contract, then Precinct 3 of Travis County would be the correct filing venue (see note below). The JP of that precinct requires that you first send a demand letter to the defendant 1)requesting the monetary amount you are claiming against them and 2)a date by which they must respond (the court clerk said there is no time you must specify but that many people use 10 days). The limit for damages is $5000 in small claims.

    Since they are a company that sells over the internet I am not sure how the following from the Texas Small Claims Court Statute would apply in this case:

    28.011. Venue

        An action in small claims court must be brought in the county and precinct in which the defendant resides, except that:
        (1) an action on an obligation that the defendant has contracted to perform in a certain county may be brought in that county; and
        (2) an action for which venue is proper under Section 15.099, Civil Practice and Remedies Code, may be brought as provided by that section.

    Please see http://www.peopleslawyer.net/smallclaims/ for more information regarding Small Claims in Texas. Hope it helps.
  • jhungnessjhungness Member Posts: 29
    I am reading venue as follows:

    28.011. Venue

        An action in small claims court must be brought in the county and precinct in which the defendant resides, except that:
        (1) an action on an obligation that the defendant has contracted to perform in a certain county may be brought in that county; and
        (2) an action for which venue is proper under Section 15.099, Civil Practice and Remedies Code, may be brought as provided by that section.

    Do you think section one could be interpreted to mean that they were to perform repair payment in my county in Illinois for me and therefore I should be able to file in Illinois?
  • redline65redline65 Member Posts: 693
    mtwallet - Are you going to try to recover the repair costs you have incurred, or are you going to try to recover the cost of your policy?
  • jhungnessjhungness Member Posts: 29
    Has anyone been keeping up with the NWIG website. According to a court appearance on 9-4-03 by all companies involved the judge has ordered the reserve accounts do not belong to the debtor (NWIG) therefore funds should be disbursed.
    Please read it. I called WG and they are currently in a meeting to discuss what this means. I was also told by my mechanic that they were told to resubmit claims for people who already have a claim #. Wouldn't you know it? Our car broke down too late to get a claim #. They stopped giving them out at that point.
  • mtwalletmtwallet Member Posts: 7
    by jhungness Sep 11, 2003 (2:36 pm)
    "Do you think section one could be interpreted to mean that they were to perform repair payment in my county in Illinois for me and therefore I should be able to file in Illinois?"

    That is the $1,000,000 question, initially I would think yes, especially if the contract were delivered to a Texas address, but I don't know how cross state internet commerce would apply in a case such as this.

    FYI, I am not a lawyer, nor do I play one on TV, I am just an out-of-cash smuck like everybody else on here :)
  • mtwalletmtwallet Member Posts: 7
    by redline65 Sep 11, 2003 (2:50 pm)
    "mtwallet - Are you going to try to recover the repair costs you have incurred, or are you going to try to recover the cost of your policy?"

    If I pursue small claims, I will seek damages in the amount of repair costs I have incurred which should have been covered under my New Diamond policy.
  • artgpoartgpo Member Posts: 483
    According to a call I just made to WG, the judge who issued the order to NWIC to release the reserves was in Nebraska. Since NWIC has declared its bankruptcy in the Cayman Islands the ruling means nothing.

    Same old same old from WG: "We should know something at the end of the month". Which month in what year?

    What does anyone ever get out of a bankruptcy settlement? Pennies on the dollar?

    It is bad enough that NWIC went under and WG might have known since late last year it was possible, but they let us, the existing customers get flushed down the toilet. New customers are welcome.

    With an estimated 950,000 NWIC policies outstanding what are our chances to see anything?

    Warranty Gold, you should be ashamed!
  • mtwalletmtwallet Member Posts: 7
    by mtwallet Sep 11, 2003 (12:32 pm)

    "If WG's address is still on S. Mopac as on the cover of my contract, then Precinct 3 of Travis County would be the correct filing venue."

    I was incorrect about the Precinct #, WG's current address is 9111-B Research Blvd
    Austin Tx 78758, so Precinct 2 would be the proper filing Precinct. The JP does not have any special pre-filing rules, and they offer a packet of information for those seeking to file. Claims are still limited to $5000 maximum and $62 is still to cost to file.
  • roadrascalroadrascal Member Posts: 35
    and issued a $2800 credit to my account for the two contracts I purchased last year. Don't hold your breath about the judges' ruling. NWIG may have already spent the reserves. Who knows...
  • redline65redline65 Member Posts: 693
    If I pursue small claims, I will seek damages in the amount of repair costs I have incurred which should have been covered under my New Diamond policy.

    I thought about this, but with 15K miles left on my new Diamond policy I'm not sure I want to just go after the $250 I've already spent on repairs. What if I have more repairs? I would have to take them to small claims court to pay each time. By then they may be in bankruptcy. I think I rather try to recover the cost of the service plan, and eat the cost of repairs, past and future.
  • mtwalletmtwallet Member Posts: 7
    by artgpo Sep 11, 2003 (4:26 pm)
    "According to a call I just made to WG, the judge who issued the order to NWIC to release the reserves was in Nebraska. Since NWIC has declared its bankruptcy in the Cayman Islands the ruling means nothing."

    Sorry, but WG customer service reps's have no clue as to what any of these rulings mean. This ruling only applies to funds that were being witheld by Prudential, the judge ruled that Prudential is not under obligation to withold these funds from their owners, that these funds are no subject to the Permanant Injunction issued Aug 19, (which granted the Cayman courts jurisdiction to settle/liquidate and removed our ability to sue NWIG). Whether or not Prudential will release those funds, and who the owners of those account were, is still up in the air.
  • mtwalletmtwallet Member Posts: 7
    by redline65 Sep 11, 2003 (4:55 pm)

    "I thought about this...I think I rather try to recover the cost of the service plan, and eat the cost of repairs, past and future."

    I am in the opposite situation, they previously did pay a claim on my vehicle of about $500, and I paid a little over $900 for the policy. So I think I would only be eligible to recover the difference between the two ~$400. But I have more than $600 in repair claims currently outstanding so it makes more sense for me to try and recover those costs, irregardless of what happens down the road. Also, my car has pretty high mileage on it now, approaching end of the contract, so it would be unfeasable to try to get another VSC on it now.
  • mtwalletmtwallet Member Posts: 7
    Has anyone filed a credit card dispute with a card company that you no longer have an account with?
  • higginspa3higginspa3 Member Posts: 1
    Just spoke with WG. Customer service just stated that if the money for the reserve accounts are not released from Cayman, "WARRANTY GOLD PLANS ON FILING FOR BANKRUPTCY" It looks like all hope is lost. It is a personal decision but I have know decided to cut my losses, contact my credit card company and try to get what I can back.. GOOD LUCK TO ALL

       CAR REPAIRS for July = 2400.00
       2 contracts Warranty Gold = 1592.00 (so far)
  • 2crnot2c2crnot2c Member Posts: 27
    A reporter from the Austin-American-Statesman (the widely read newspaper in Austin) called me up and I gave her my whole story with WG. I also mentioned what problems others were having and asked her to peruse this discussion group.

    She mentioned that tomorrow 9/12/03, my story would be printed. I told her that I wanted people to be aware of this problem and that nobody else should venture and buy any extended warranty contract from WG.
  • roadrascalroadrascal Member Posts: 35
    If this is true, then what about the new policies Warranty Gold is selling? According to the rep I spoke with First Automotive is their new administrator. To me, that sounds like unethical business practice and perhaps illegal. Thank goodness I managed to get my money back.
  • roadrascalroadrascal Member Posts: 35
    It's a few months old, though.

    http://www.klas-tv.com/Global/story.asp?s=%20%201350831
  • nhmikenhmike Member Posts: 2
    Thanks everyone for the great information on the WG/NWI fiasco. I just found out about my useless policy yesterday. Even though my contract has Independent Warranty Management Corporation from Colorado as the Claims Administrator they must have sold out to NWI as some point. I will be filing a complaint with TX soon. Thanks for those links. To help get the word out we need to remember to post to other discussion boards like boating and RV type sites because they also sell policies for them. Imagine having a policy on a $150,000 motor home. Ouch!! Keep the information on this topic coming. Thanks to all.
  • ralexandralexand Member Posts: 1
    Wow, Claudia did a great job on this article. I was very glad to have provided some of the background information to her. Anyone in the Austin area should review this informative article in today's business section. Thanks again Claudia!
  • 02psd4me02psd4me Member Posts: 4
    Yee Haa, Just found out my credit card company just refunded my $3400+ for the two contracts that I purchased on 4\26\03. It took a couple of weeks to do the dispute paperwork, but was well worth it. :-)

    If any of you paid with your credit card, contact them and dispute the charges.
  • mrswansmrswans Member Posts: 6
    I charged my $1,245 Warranty Gold contract on 26 March of 02. I've had no claims on the extended warranty. Is there any chance I could get a refund? I'm getting ready to send in the dispute form to the credit card company this week.

    Thanks,
    Mike
  • 02psd4me02psd4me Member Posts: 4
    Mike, I would pursue it with your CC company, it is worth a shot. $1245 is not chump change.
  • garnesgarnes Member Posts: 950
    Hey - come on here. A lot of what's being asked is right there in some fairly recent posts. Just look back.

    I believe at least one person here has successfully disputed a WG credit card charge that was pretty darn old (at least over a year ago if not much more). This is great news.

    If you call your credit card co., they will tell you what they think - but send it in no matter what. I sent a copy of the contract, copies of WG letters explaining that I'm not covered, and a copy of the statement with the transaction highlighted. Maybe it doesn't legally mean anything, but I still like how the charge is shown as "Warranty Gold" on the statement.

    I still say there is nothing to lose by issuing a dispute. Go for it!
  • frankenstein1frankenstein1 Member Posts: 21
    i paid using automatic payments on my bankone card (visa). i used my debit card, but i used it in a "credit" manner. WG simply charged the card every month for a year. do you think i might be protected since i used it as a "credit" card? i wonder...........
  • illini4illini4 Member Posts: 140
    I paid the same way you did. I haven't looked into the possibility of a refund, but I doubt if there's much of a chance.
  • garnesgarnes Member Posts: 950
    For crying out loud, call Bank One or whoever. Ask them. Explain it. You have nothing to lose. How many hours do you have to work to have $1,000+ AFTER taxes? It's worth a phone call and an hour of paper work and a letter.
  • quigonjohnquigonjohn Member Posts: 77
    I'm going to try and get something from my CC company. All I paid by CC is the deposit and first payment, total comes to $549. So maybe I'll get that back. Do you need a letter from WG? I will snail mail them today asking about the status of my refund, (cancelled on July 20).
  • artgpoartgpo Member Posts: 483
    I called my bank and was told that claims needed to be made within 60 days of the transcation date. The rules may be different on standard credit cards.
  • jhungnessjhungness Member Posts: 29
    My bank says there is nothing they can do because I authorized the debits and then made my final payment by check.
  • ftpftp Member Posts: 16
    I just called Customer Service for my GM Credit Card. They do not reverse charges that are past 60 days from the posting date.

    I have a 2000 Bonneville with a crapped out engine (oil pump went out at 45,000 miles). The vehicle is just sitting at the dealership waiting on WG to honor their contract. I refuse to shell out the $5G's and then hope WG reimburses me. If my WG contract dies, I will take it to my friend's shop and have a used engine put in for $1,400.
  • huckfinn4huckfinn4 Member Posts: 2
    There seems to be a glimmer of hope for us WG customers. On September 5, the bankruptcy court released the reserve account Warranty Gold established for its customers. (http://www.nwig.com/Order on Reserve Accounts.PDF) As I've researched this whole NWIG bankruptcy issue, I've actually been encouraged by the manner in which WG has handled the entire NWIG debacle. Turns out that WG was one of only a handful of warranty companies that had the smarts to retain ownership of the trust reserve account. The other folks that dealt with NWIG sent the money directly to NWIG who, in turn, deposited the funds into one of ITS trust accounts. That money is gone. Since WG only contracted with NWIG to ADMINISTER the funds in the WG reserve account, the bankruptcy judge said that NWIG couldn't use the bankruptcy to tie the hands of WG.

    I've read alot of the comments about WG, but it is my hope that since WG is one of the few companies to have hired lawyers to get their customer's money released that the company will remain committed to us. After all, that's the only way that it has any prayer of staying in business. By continually blasting the company, we might wind up shooting ourselves in the foot. I've spent about $3300 on the policies I have, and I'd sure love to get the coverage I paid for. But bottom line, WG didn't really do anything wrong. When my policy was issued, NWIG was rated A+ by A.M. Best (I checked it out). In fact, it had only dropped to a "B" rating (A.M. Best) on May 23, 2003, eighteen days before it began the bankruptcy process. In other words, no one saw it coming. Up to that point NWIG was the biggest and most established warranty insurer/administrator company on the block. It was NWIG that kept everybody, including WG, in the dark. For that reason, I really don't have an ax to grind against WG. WG got hosed like the rest of us...I have no doubt that its owners would prefer to not see their business (and income stream) evaporate. The only question that has not been answered satisfactorily for me is what happened to WG's re-insurer? I wish WG would explain why that company didn't step up to the plate when NWIG failed to pay claims. I'm hoping that it was because its coverage requires WG to deplete its reserve account by "x" dollars before the reinsurer is obligated to pay. If that's the case, we may all be okay because the reinsurer's obligation may soon be triggered once WG starts paying the backlog of claims out of the recently released trust reserve.

    Everyone cross your fingers!
  • quigonjohnquigonjohn Member Posts: 77
    From everything I could tell in tracking this whole debacle, NWIG was not only the Administrator, but was also the Re-Insurer. Doesn't make a lick of sense to have the Re-Insurer be the same company as the Administrator/Primary Insurance. I too do not hold the most contempt against WG. But it does seem that at least some of what they did was shady. There are allegations they knew NWIG was having financial difficulties in late 2002, but no action was taken, no potential customers were warned, etc. If WG comes through and pays the outstanding claims and issues the refunds for those who cancelled, like myself, they will have improved their outlook, in my mind. I too wish this had never happened because the terms of my contract with them could not be matched by another source, so I had to settle for less mileage and a $50 deductible vs. the $0 I had with them. But how good was their contract if it wasn't to be honored?
  • frankenstein1frankenstein1 Member Posts: 21
    where can i buy some of the stuff you're smoking?

     since when ISN'T it wrong to continue to take $$ from people for policies you KNOW are worthless? i'll bet that there are STILL some people out there(who haven't had anything go wrong with their car) who bought policies last year who are paying on something that has no value.
  • jhungnessjhungness Member Posts: 29
    Pass the good stuff this way. WG kept taking money from people they even let me finish paying off my policy without telling me. I only found out because our car broke down. Read the article in the Chicago Tribune from 8-30-03. I was never told NWIG was the administrator. I didn't even know that WG didn't pay out their own claims. How could I research something I knew nothing about. WG has handled this whole process terribly, I was even told today that they didn't tell anyone because they didn't want all the phone calls from non-claim people. How about the fact that their website still has a quote from someone who bought a policy 3 years ago and just got a claim paid. Hmmm impossible isn't it? Isn't that fraud? I'm still waiting for my comment to be posted, oh wait they probably don't post the negative. DUH!
  • rayt2rayt2 Member Posts: 1,208
    Why would anyone want to contact you or even trust a profile that gives just your initials and place of residence as the USA, besides you have NO e-mail address listed .....duh .........give me a break!

    I have their contract on two vehicles, I have had all claims paid that were submitted to date on one of the vehicles, the other has had no problems. My contracts are not yet a year old. Maybe I'm in for a shock in near future when I have another claim but until then I'll hang on based on what huckfinn has stated. If and only if they deny a claim then I'll load my guns "sic" and go after them thru the legal system. This society has gotten so litigious it's sickening! But your entitled to your opinion, because, this is America !

    Ray T.
  • 2crnot2c2crnot2c Member Posts: 27
    Hello, I don't want to burst the bubble, but if your credit card company refunded the amount you paid WG and that amount is in dispute, that does not mean that you are in the clear completely. The credit card company can still reverse their stand and charge you for it. Let's say that WG does not pay the amount of your credit card, then who takes the loss? It would be either you or the credit card company. Now a credit card company would not always want to take such losses as it would be bad for their business. Everybody is in for the profit. If you have a great credit history and have a great credit card company, then the chances of the credit card company taking the losses is much higher.
  • roadrascalroadrascal Member Posts: 35
    According to my credit card company, WG has 45 days to produce evidence that the charge is valid. WG needs to prove that my contracts were in full effect during the entire time I had them. Not likely. I believe what the credit card company does is withhold funds when there's a dispute. So I'm assuming that someone recently used a credit card from the same cc company I have to purchase a new contract (WG is still selling new contracts using a new administrator) and essentially refunded that money to me instead of giving it to WG. I highly doubt any credit card company would take a loss, unless they can write it off tax wise.
  • simpson6simpson6 Member Posts: 3
    Whether WG prevails and recaptures their reserve fund, or not, there has been incalculable damage done to the whole of third party extended warranties, especially those sold over the Internet. Anyone who is still seriously considering such a contract is either a slow learner or a greedy fool. IMHO.
  • jhungnessjhungness Member Posts: 29
    Wow, you're rude. When I first started posting on this website I didn't realize how involved it was going to be. If you look on my past emails I give mention to a front page article done in the Tribune. It even has my picture if you're really curious my husband plans on sending it to you.
    I'll look into updating my profile immediately. If you would really like all of my personal info then I'll be happy to give it to you.
  • jhungnessjhungness Member Posts: 29
    I updated my profile to include all my info.
  • jhungnessjhungness Member Posts: 29
    I called WG on Thursday of last week inquiring about the 9-5-03 judgement. I was told by one person that they were currently in a meeting regarding that very thing. He said I could call him back to get more info. I waited until Monday and got someone else who said that the other person was sadly mistaken by telling me that and that their meeting had nothing to do with it. she says their lawyers are still working on it and that WG at this point doesn't know if the judgement effects them at all. She says there is an appeal process. Claims still aren't being paid and quite frankly if NWIG used the money in the reserve accounts to pay past claims there is still not going to be enough money for all of us to be put over to the new administrator or receive refunds. I wasn't even lucky enough to have my car break down in time to get an authorization number, I only have a claim number. Then what?
  • simpson6simpson6 Member Posts: 3
    Sorry about the earlier post. I guess I'm just very upset about my situation. I do hope everyone will seriously consider all the options, include self-insurance.
  • mtrainer2mtrainer2 Member Posts: 6
    While I am not a WG contract holder (I reearched intensively and bought Warranty Direct), I have followed this thread with great interest.

    Correct me if I'm wrong, but the article in the Chicago Tribune (might have been another posted in the thread) stated that NWIG notified WG of their financial troubles months before it became public.

    I had considered WG but their sales tactics (can you say used car salesmen-like) and outright lies made me run.

    Has anyone done any research on this new outfit they are selling for? (First Automotive Group) Cripes, I can't believe people would buy their plans.
  • photo_guyphoto_guy Member Posts: 24
    I have also been watching this thread carefully. I also researched and bough from Warranty Direct but it sounds like the WG problem this could have happened to ANY warranty company and the average shopper would have no way to have seen it coming no matter how well they think the researched their purchase. I have great empathy for those who appear to have been 'taken' by WG - especially those who bought recently.
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