This is the letter I sent to Warranty Gold. It explains my problems with them:
August 20
Warranty Gold
9111 B Research Blvd
Austin, TX 78758
Dear Mr. Nelson,
This is what your website states as of 8/19/03...
Who really owns your warranty? Who really has your money?
You need to know about the "transfer of risk" associated with warranties. A transfer of risk is when the dealer pays money to an administrator that sets up "reserves." These reserves are used to pay for repairs. Why is this important?
Some dealers DO NOT pay into the reserve, they do not "transfer the risk". They are gambling with your money. Your warranty is then only as good as the financial status of the dealership. If they hit hard times, your warranty is in jeopardy.
If the dealer hasn't "transferred risk" to an administrator that maintains an excellent claims paying ability and the dealership is sold OR GOES OUT OF BUSINESS, you're out of a warranty, and you're out of the money you paid for that warranty.
Warranty Gold won't play games with your money.
Now - please look up contract # WG114044 and WG 114068.
This is David JoAnn at
xxxxx
We brought my husbands car in for a $1200 service under # 114044 that would have been completely covered by your Diamond Plan to my Pontiac Dealership on Thursday, Aug. 14th.
My mechanic called me on Friday, Aug. 15th, and stated that you are no longer paying any
claims. Your company found out on 6-6-03 that your third party administrator went bankrupt (according to your customer service department). Nobody notified me at all. My contract is with Warranty Gold, not NWIG. You have to pay my claim or refund my money for lack of services that I paid in full for at $2880.
I paid out $2880 for my warranties (2 of them), and now will have to pay $1200 of my own money for my car that is completely covered by my Diamond Coverage Plan. (... And you KNOWINGLY took my last EARLY payment of $1100 last month - which should have placed me under you NEW administrator!!! You know the one, the one that IS paying out claims...).
You were informed on 6-6-03 that NWIG was going bankrupt. You took money out of my bank account on: 6-11-03,6-23-03,7-11-03 and 7-28-03 was my check, these total $1400.00. I want my money returned to me in full $2880. You have taken advantage of several innocent people, me being one of them. I am severely hurt that a company would pull an Enron (sure youve heard of it). Those people are going to jail. Christian Pineda gladly took my money from me fully knowing that nothing would be paid.
When I talked to him in early July and said Hi Christian, Id like to pay the balance on my warranty in full, He said, Great, Ill send you a statement and you just send in your check. Am I missing something? No mention of Hey by the way send in your money but the people who would pay your claims went bankrupt, but well gladly take your money anyway. I was also never told that you had a third party administrator, nor was their name mentioned on my contract (that I do have a copy of).
Your customer service people continue to lie to people as well as whats on your website. You have 5 days from receipt of this letter to refund the $2880 Ive paid you transfer my contract to your new administrator and inform me IMMEDIATELY either by:
Email: xxxx
Address: xxxx
Office: xxx
Home: xxxx)
I am neither famous nor rich, but I AM an innocent and a previous faithful customer to Warranty Gold, and you have taken my money with a smile on your face - never telling me that accounts had already been frozen, and that I may never have a future claim paid by your company. You have deceived people and are in violation of the Texas Deceptive Trade Practices Consumer Protection Act. I looked it up and have a copy of it to give to the Chicago Tribune.
I have already contacted the Attorney General in Texas, the BBB and its posted all over the Edmunds website by a bunch of people saying not to do business with you. I have contacted Bill OReilly, Walter Jacobson, TV stations in Texas and Chicago and 4 newspapers in your area.
I will find ANY and EVERY: attorneys firm, news agency, website, newspaper, magazine, author,
and anyone else who will listen, and inform them of what you have done to me and 100s of others. You may not see the results of my efforts today, but you will see them... Why wouldn't you at least have told me? You have put my entire family at financial risk now - you've bilked me of $2880 and the $1200 it will take to fix my car in which I cannot afford to do at this time, plus ANY
other problems that may happen with either one of my 2 cars "covered" by you.
I want all of my money refunded to me immediately. This should be debited back into my account in which you have a record of all of my numbers seeing as how youve already stolen that money.
I am praying that you will do the honorable thing and refund my money.
Joann
Round Lake Beach, Illinois
U.S.A.
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