MEPCO AUTO WARRANTY Carchex PremierXTend MEPCO CARCHEX SCAM Hunt Valley Maryland

Thank you for the opportunity to respond to this customer's posting. In this transaction, CARCHEX served as the broker in that it helped the consumer to purchase a 5-year Premier Xtend warranty from the Premier Dealer Services (PDS). PDS, a subsidiary of A-rated Great American Insurance, offers aftermarket insurance products, including vehicle service contracts and warranties. The warranty itself is an agreement between the Administrator (or Obligor) of the program and the consumer. It is important to understand that sales organizations maintain no authority or discretion in the adjudication of claims. That responsibility rests with the Administrator of the contract, in this case PDS.

Each Administrator's contract contains specific Terms and Conditions which outline exactly what is covered by the contract as well as other important items such as claim procedures. We strongly recommend to all consumers to request and review the service contract information thoroughly prior to and after purchase so that they may get a clear understanding of the covered components associated with their purchase as well as familiarize themselves with the company backing the contract. At CARCHEX all contracts in their entirety are available for consumers to review prior to purchase and we proudly offer a 100% 30-day Money Back Guarantee and the highest quality products backed by top tier administrators and insurance carriers.

In this case, the customer's contract contained the following specific terms:

In order to qualify for coverage under this Limited Warranty, you must meet the following requirements:

1. You must install the PremierXTend Plus product in the radiator overflow within thirty (30) days of receipt of the product.

2. You must have the engine oil and oil filter in the engine replaced by a commercial service facility within sixty days (60) of the Effective Date of this

3. After the initial engine oil and oil filter replacement referenced in (2) above, you must have the engine oil and oil filter changed by a commercial service facility every four (4) months or four thousand (4,000) miles, whichever occurs first, for the term of this Limited Warranty.

In the event of a claim, you will be required to provide us with proper documentation (including verifiable receipts) evidencing that all required engine oil and oil filter changes were performed within one thousand five hundred (1,500) miles or two (2) months of the required intervals.

4. In addition to the maintenance requirements outlined in (3) above, you must perform any other maintenance services recommended by the vehicle manufacturer for the Covered Parts as outlined in the vehicle owners manual.

Upon being contacted by this customer, CARCHEX attempted to help resolve the claim but were told by the Administrator that the customer was submitting hand-written receipts vs. those from a commercial service facility, as required by the contract. Thus PDS chose to deny the claim. The customer simply had to maintain receipts from oil changes from a repair facility, as most consumers do.

While we attempt to make every customer happy with their purchase, inevitably there are some instances in which a customer may be dissatisfied with the result of a claim being denied. In all cases, we are available to work on behalf of consumers to help determine validity of any denial. For additional information you may visit www.CARCHEX.com. We look forward to the opportunity to serve future consumers thru our consultative sales process.