Following the purchase of my MH in '04, I bought an extended service contract from Warranty Experts, San Antonio TX. I paid the $2540 premium and was issued a contract signed by Warranty Expert's rep. on 8/2/04. Attached to the contract were receipts showing that payment in full was made on 8/2/04. When my manufacturer's warranty ran out in 4/07, I called the 800 number on the contract to familiarize myself with the service procedures in the event I needed repairs. No one could find my contract number. When I called Warranty Experts, they told me the contract had never been effected because the premium had been paid in two increments, and that there was a clerical error. When I checked with the company that administers the service part of the contract, I was told they had never received the money or the contract from the vendor which was the reason it was not in their system. Now I am without coverage until I end up going through a bunch of legal hassle to get my money back. For those out there who are considering buying an extended service warranty, buyer beware. When you send a check to the vendor, make sure you ask when your contract and money will be sent to the contract service provider; otherwise, you may end up like me. And if you're looking for a company with good customer relations, stay away from Warranty Experts. The owner actually called me stupid and hung up the phone. Anyone want to comment?
extended service warranty
- Thread starter rojos
- Start date
The friendliest place on the web for anyone with an RV or an interest in RVing!
If you have answers, please help by responding to the unanswered posts.
If you have answers, please help by responding to the unanswered posts.
Marc L
Well-known member
That is terrible. Loosing money is never fun. Good luck getting it back, I am not being sarcastic here (although I usually am), I am really wishing you luck.
As for extended warranty, I decline it on everything I buy from 50$ MP3 players to vehicles. I have a few reasons for that:
1. With the money I save on declining the extended warranty, I have money to pay for my repairs. A furniture salesman told me my logic was not good because I would spend the money and I would not have it for the repair. However, I buy most big ticket items on credit, so I can get them fixed on credit. And the stuff I bought with the money I saved, I would not have.
2. Extended warranty are in the favour of the company selling the warranty. So if they charge you 1000$ for the extended warranty, it means that the average warranty repairs they have to pay out is less than 1000$ otherwise they loose money. They are in the business to make money.
3. There are a lot of fine prints, like with insurance contracts. If one is not careful, the coverage bought may not be as good as what the salesman said.
4. A new one from today. If the dealer does not pay the premium to the company providing the warranty, you may not have coverage anyways.
As for extended warranty, I decline it on everything I buy from 50$ MP3 players to vehicles. I have a few reasons for that:
1. With the money I save on declining the extended warranty, I have money to pay for my repairs. A furniture salesman told me my logic was not good because I would spend the money and I would not have it for the repair. However, I buy most big ticket items on credit, so I can get them fixed on credit. And the stuff I bought with the money I saved, I would not have.
2. Extended warranty are in the favour of the company selling the warranty. So if they charge you 1000$ for the extended warranty, it means that the average warranty repairs they have to pay out is less than 1000$ otherwise they loose money. They are in the business to make money.
3. There are a lot of fine prints, like with insurance contracts. If one is not careful, the coverage bought may not be as good as what the salesman said.
4. A new one from today. If the dealer does not pay the premium to the company providing the warranty, you may not have coverage anyways.
Gary RV_Wizard
Site Team
W.E. used to be a good extended warranty broker, but there have been several reports like yours recently. They appear to have gone completely out of control there (though the policy I bought thru them last November is in force and has already paid out one claim). I would advise everybody to steer away from WE - simply too much risk.
I Happen to have purchased a policy from WE and at 1st had a bit of trouble but they straightened it out and My policy was issued and is still in effect with the company that picked up the policy. But I have to agree with Gary even tho I have supported them in the past.
Jim Johnson
Well-known member
Ditto on Gary's comment. Avoid WE like the plague.
To reiterate my previous warning, if you intend to buy an extended warranty from an online company or one advertised in an RV or trade magazine, make sure that your money and the contract go to the service provider. Otherwise, you may end up like me. I have been in contact with the Texas RV Association and was told a lot of this is going on. I would urge everyone who receives a contract to immediately call the service provider to insure your contract has been received from the vendor and is in effect. If they haven't received the contract, I would ask why. And if they give you the runaround, cancel the contract. Most contracts can be cancelled within 30 days and in some states, 60 days. Buyer beware. Everything isn't always as it seems. And you can't always rely on companies exhibiting the BBB seal of approval on their websites. I would urge everyone to contact their state's attorney general for consumer affairs and ask for more regulation of these vendors who prey on the public with their scams.
Gary RV_Wizard
Site Team
All good advice, rojos, and thanks for posting the initial warning and the follow-up.
As a follow up to my previous posts, my extended warranty nightmare has finally ended. After losing my BBB complaint against Warranty Experts (San Antonio, TX), I filed a BBB complaint against the service provider, Mechanical Breakdown Administrators (MBA, Scottsdale, AZ). MBA denied any responsibility and pointed its finger at Warranty Experts. Ultimately, I ended up in Small Claims Court in Scottsdale. It took the hearing officer about 20 minutes to decide in my favor and MBA had to pay the full jurisdictional amount ($2500) plus court costs. I lost some money on the deal (travel expenses, etc.), but had I done nothing someone would have walked away with $2540. Needless to say, I would not recommend dealing with either of these companies after what they put me through. I might add, neither company offered an apology for causing this huge headache. So much for customer relations.
