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Discussion Starter #1
Today I received some interesting news from my warranty company. My car has been in the shop for about a week for a couple of relatively minor things (thank goodness it wasn't anything extreme). The warranty company "Warrantech" decided on this occasion that the contract wasn't valid anymore because the contract wasn't purchased at the time of sale of my vehicle. Duh, it's an aftermarket warranty. They had paid for previous repairs with no problem, but this time they outright cancelled it, denied the claim and wouldn't give me anything in writing unless I write them first (I have enough pen-pals thank you very much). Here's the scoop though.. anyone that has a Warrantech warranty that bought it from Bruce should have him check on it or call Warrantech directly to validate and GET IT IN WRITING! The service rep at Warrantech said they noticed the discrepancy and have many more contracts that they are canceling -including what I assume are some members on this board. One poor soul has his MB in for a 17k engine replacement. I'm still not sure what exactly is going on, but heads up!
 

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They probably meant the sale of the car like when you bought the car used. A lot of warranties you can only buy during the buying process not afterwards. But nonetheless I am still curious hopefully Bruce chimes in.
 

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Seems like they are just looking at ways to cut their loses.
 

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I would have a lawyer write a letter. The fact that they accepted your money and paid out prior claims can be constituted as an acceptance of terms. Deciding to cancel it now puts you in a bind because you operated under the understanding that you had a valid warranty. Had they denied your initial purchase, or even your first claim due to some sort of invalidity, then that's one thing, but by paying your claims they sort of "validated" your agreement.
 

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I am in the same situation. Bruce is trying to help. I'll keep people posted on progress
You don't have Fidelity anymore?


Speaking of Fidelity does anyone know someone who sells their policies? I'm looking into another policy but haven't heard back from Bruce in a couple months lol.
 

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Discussion Starter #7
I would have a lawyer write a letter. The fact that they accepted your money and paid out prior claims can be constituted as an acceptance of terms. Deciding to cancel it now puts you in a bind because you operated under the understanding that you had a valid warranty. Had they denied your initial purchase, or even your first claim due to some sort of invalidity, then that's one thing, but by paying your claims they sort of "validated" your agreement.
I agree and that's exactly what I'm going to do. I need what they're doing in writing first, which they won't provide to me until I write them first. Regardless if the warranty was in-fact valid or not, I believe the onus is on them because like you said, they accepted the terms. Just how much $$$ will it cost to fight is going to be the issue. For a $4k warranty which is half-way done it probably won't take much for me to say piss on it, especially since I don't have a huge repair bill waiting on it.
 

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I am here. I am working on this as hard as I can, nearly all day/every day. Due to the horrendous claim histories of the cars I sell warranties for (all high risk like M-cars, MB 12-cylinders, etc), my name has bubbled to the top of the radar screen a few times.

They have decided to invoke some clause I was not aware of in the agent agreement (not in the actual service contract that my customers get) about who sold the car, when the plan/car were sold, etc.

Legally (and I am no lawyer) what some of you say sounds correct.....if you receive the contract, accept payment, pay claims, and have the same opportunity to examine the the way it was sold originally that you do now, you've basically accepted it as in-force and can't go back later and shrug your shoulders and say "Well, we just looked at that stuff now." How a court will interpret it, who knows, this is America, but certainly I've seen this sort of thing before, the 'sitting on your right' argument, and it's been successful plenty of times.

Bruce
 

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This is very concerning, given the fact that I have 11 months left on my warranty and may sell the car soon. I want to be able to transfer the remainder to the next owner without hassle.
 

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So, warrantech cancelled my warranty today, denying my claim, stating that the warranty was not sold along with the car from the same dealer. Bruce knows this and could not help.

Those of you with warrantech/amtrust plans.... any ideas on how to proceed? Should we form a group and act together? I am not a lawyer... but what they are doing just doesn't feel right.... take my money, sit on it, I file a claim, they choose to cancel?
 

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At the least we should all go and file a BBB compaint against the company.....thoes of you with a warrantech warranty, be sure to call in and confirm that it will remain in effect, least you find out when u need it that they will cancel.
 

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For the ones who haven't used their policy wouldn't they give you your money back? And the ones who have barely used it would they prorate it for you?
 

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Discussion Starter #17
So, warrantech cancelled my warranty today, denying my claim, stating that the warranty was not sold along with the car from the same dealer. Bruce knows this and could not help.

Those of you with warrantech/amtrust plans.... any ideas on how to proceed? Should we form a group and act together? I am not a lawyer... but what they are doing just doesn't feel right.... take my money, sit on it, I file a claim, they choose to cancel?
I'm going to write them a certified letter this week and ask for the specific reason of cancellation along with an explanation of why benefits were paid out; why I was never notified of such a clause and why they're specifically breaking a contract that they had with *me*... dealer aside. I'm also going to ask about proration of the policy and if this is their "normal" policy for enforcing contracts. If they have not done this in the past and is something that they just started doing as a matter of singling out unwanted claims, then we have a leg to stand on. Of course if we all jump on a class action they'll need to stand up and take notice as well. It doesn't help in the short term though. Pending their return reply (get it in writing) that's the time to talk to an attorney. The arbitration clause will be a bear to get around though. Once I draft something up I'll post here and we can use it as a template.
 

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Thanks, do let me know what you send. Reg. arbitration..that's for claim denial. They are cancelling the policy outright, so not sure if arbitration would apply. Either ways, let me know what you send.
 

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Call them. Basically she said if you didn't buy from Beck's, your policy is invalid, and said that has always been the case. She did mention that a prorated refund would have to go back to Beck's first then we'd get it from him.

Warrantech Contact Us
 

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Discussion Starter #20 (Edited)
Call them. Basically she said if you didn't buy from Beck's, your policy is invalid, and said that has always been the case. She did mention that a prorated refund would have to go back to Beck's first then we'd get it from him.

Warrantech Contact Us
I got the same thing when I called them. What I found interesting is that they don't require any proof (bill of sale) at the time the contract is signed. I asked why that was the case and got some nonsense about it not being their policy. I would think that if they wanted to consistently apply or audit the "didn't buy there, is invalid" policy they would ask for the bill of sale. It sounds like a loophole that they have that allows them to single out unwanted dealers who have higher than normal claim amounts. Just my opinion at this point, but it sounds very fishy.
 
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