In March of last year I contacted this company about a warranty. They told me that it covered the engine, transmission, A/c, electrical, car rental and towing, labor & diagnostic charges. That I could take it anywhere licensed, and that my first repair could make up for the policy cost. I asked many questions about what it covered, and they assured me it was full coverage, like the original warrenty that came with the car. They had me put $295 down, and payments set up on a card for 18 months @ $132.
In August, upon routine maintanance, Firestone found that the transmission had gone bad, and it needed immediate repair or replacement. They don't do that work, so I had it towed to AAmco. When I got there, I called the warranty people (located in New Jersey) and they said I had to sign for a tear down inspection and then I had to fax ALL of my past receipts for the Honda, to be sure that it was not preexisting, or that negligence of proper maintanance had caused it. Aamco said that it could be repaired.
Then they told Aamco that they had to wait for an outside inspector from Magoo to make his inspection and send a report to Warrenty Company. The inspector came three days later, made his inspection, and said that Aamco was correct and that it was covered. 5 days later I call the warrenty co. Because they have yet to authorize. They said they had not received the report, but Aamco said they saw him fax it to them from their office before he left Aamco. It took two more days to get someone on the phone. They simply did not pick up the phone. Then they denied the claim. They said only "covered parts" were covered.
This is what the policy reads:
"Internally lubricated parts of manual or automatic transmissions, including torque converter case if damaged by the failure of an internally lubricated covered part, oil pump, drums, planetaries, sun gear and shell, shafts, bearings, shift rail, forks and synchronizers." Underlined part are the only covered parts. Aamco said that the torque case could not go bad without it going bad from inside it. But this is what was wrong with it, and yet they denied it. Fact is, that one part of the terms nullifes the other part. Thus they will probably never pay for a transmission. To narrow a scope.
Did I mention that since they denied my claim, they did not reimburse me for the tow, the tear down, the Rental Car for 2 weeks and the cost of a transmission. All for the tune of about $4000! But all they offered me was one free payment to make up for the inconvenience. $132 barely makes a dent against $4000. I wanted to go to arbitration, and asked Warranty Co. For a copy of the report made by Magoo, they said they could not give it to me as the file was closed after the denial, but that I could get it from Magoo myself. Magoo said I had no right to it since the job was not ordered by me, but by them. Their intellectual property. I had a right to that report to refute their denial, but I had no evidence other than my Aamco guy, whom was willing to accompany me, but it could only take place in New Jersey!
The finance company (MepCo, Carol Stream, Il), the "customer service/claim line (Mahwah, NJ)" and the seller (Stoprepairbills.com, St Peters, MO) are all separate entites, and they all blame each other for miscommunication and misconduct, but that they have no connection with each other. Mepco is a straight financial facilitator, but the others are connected, I'm sure.
My last question is how do I put an end to this nightmare, and cancel this this useless warranty? Mepco contract says I can cancel their contract any time. Warranty says cannot cancel unless vehicle is a total loss or repo. I do not want to pay another 7 months of payments to these scammers.
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