On August 4, my boyfriend and I purchased an extended warranty for our BMW. We orignally contacted CarChex after some research on the Internet. The representative did state that they use a third party warranty company Alpha Warranty Servies, and we were informed that they are an excellent service and we will have no problems. The contract states that the warranty takes affect 30 days AND 1,000 miles after purchase. We specifically asked the question if something goes wrong on the 31st day will they honor it. He said yes no questions asked as long as you also meet the mileage requirement. So it seemed like a good investment. We then had a contract emailed to us, read it over, asked our questions and purchased it for $4,179.00. I would also like to mention that the warranty was purchased in full. We were also told that we will be receiving a $100.00 gas card (which we have yet to receive, surprise surprise).
Last week the navigation system stopped working on the BMW. Because we met the stipulations of the contract (warranty must be 30 days old AND must have 1,000 miles more from the time of purchase) we assumed we would have no problem bringing the car in for service.
A few hours ago we received a phone call from the service advisor at the dealership explaining that our claim was denied by the warranty company. After asking why would it be denied the service advisor was told by Alpha Warranty Services they FEEL that this was a pre-exisiting condition.in turn, the dealership explained that the BMW was there on 8/3/09, one day before the warranty was purchased and this was not a pre-existing condition. The dealership faxed over proof to Alpha Warranty Services clearly showing that it was not an issue at that date.
After review Alpha contacted the service advisor and the claim was "reviewed and denied because we FEEL it was a pre-existing condition." I then contacted Alpha to inquire further about the denied claim, and the representatives response was that being that it occurred last week our logistics deem that you did not have 1,000 miles on the vehicle at that time. I then stated it most certainly did have the required mileage. They said that our mileage doesn't meet their logistics. I then replied that no where in the contract does it state there are logistics as to how many miles are required/expected to be put on the car in a certain time period. He then stated there is not a set number, I responded then how is it possible you are denying a claim that meets all of your contract requirements? I was also told that the claim has been closed. Without contacting the purchasers of the contract or any type of investigation the claim was closed. I asked him for a contact number or email for the claims department and I was told, it is an internal department so we don't have either.
I asked him what the next step is because we are going to fight this. He said we have to fill out the appeal packet and upon two weeks they will advise us of the decision. I asked him to email me the information. Once I received the email I carefully read the information, only to find out that we would only receive $300.00 if we are approved.
Keep in mind we purchased the platnium warranty. At this point we have decided we do not want to do business with this company and we requested a refund. They then stated that the refund will be pro-rated! Not only are they not fulfilling their end of the contract, they are also stealing money from hard working people! This company is a joke and has no intention to living up to their end of the bargin. We are demanding a full refund for the purchase of the warranty.
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