• Report: #801306

Complaint Review: CarChex

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  • Submitted: Wed, November 23, 2011
  • Updated: Fri, December 02, 2011

  • Reported By: TomK — Waynesboro Pennsylvania USA
CarChex
10950 Gilroy Rd. Hunt Valley, Maryland United States of America

CarChex Dishonest, False Sense of Security Hunt Valley, Maryland

*UPDATE Employee: Response to Post

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I bought a used, 2003 Durango with 133k miles on it from my sister that was in good running condition. I immediatly purchased a CarChex Warranty the following day. About a month and a half later I had the truck in for a tune up and oil change. The Mechanic at the small shop I took it to noticed a noise coming from the engine he didn't like. I asked him to investigate it and he said that the Head needed to be machined that there was a problem with the valve seat position. I asked him to fix it and he said $1100.00. I called Carchex, they denied the claim, said it was too soon, must be a pre-existing condition that caused it. so fine, I paid outta pocket.

About a month later, I get another noise coming from the engine, but the truck is running fine. So I pack the family up and get on the road to NY to visit my parents, about 100 miles away, the truck starts to overheat, I wuickly get off the highway and to a gas station so i can see whats going on. I had to have the truck towed, upper radiator hose busted. This time I send the truck to a Dodge dealership, figured it would be safer and since I have a warranty, I could trust that the repairs would be covered. How WRONG I was... The Motor is blown, fried piston. CarChex denied the claim, I b***h and complain, they finally send an inspector out to look at the issue. He shows up, did a 5 min inspection and claims that once again, this was a pre-existing condition. Actually he blamed it on lack of vehicle maintentance. He said that there was "sludge" in the motor and that was what caused the failure.

I have service records for the past 3 years for theis vehicle which include regular oil changes and fluids being flushed among other things. I feel like I have been mislead and ripped off by this company, all they ever have to say to deny a claim is that it was caused by a pre-existing condition, and who can prove it otherwise. They had no problem accepting my down payment and monthly payments, but I cant even get them to cover the tow bill.

I spoke with a supervisor on the phone and he had the nerve to tell me that whenever you buy a used vehicle even with a warranty, you are responsible for the repairs to that vehicle. I told him that was why I purchased a vehicle warranty. Apparently I was wrong.

I filed a complaint with the BBB, and consumer affairs. My father cancelled his contract with carchex because of this, I will make sure that everyone knows what a crappy, unprofessional bunch of liars this company is.

This report was posted on Ripoff Report on 11/23/2011 04:06 PM and is a permanent record located here: http://www.ripoffreport.com/r/CarChex/Hunt-Valley-Maryland-21031/CarChex-Dishonest-False-Sense-of-Security-Hunt-Valley-Maryland-801306. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 UPDATE Employee

Response to Post

AUTHOR: Brian - (USA)

My name is Brian Delman and I am a support manager at CARCHEX. I welcome the opportunity to respond to this post. I feel its best to see both sides of the equation so that you may form an accurate assessment of how CARCHEX handled this issue.
 
First allow me to provide the timeline of events for this claim.
 
The vehicle service contract was purchased on 9/16/2011. As with most vehicle service contracts, there was a waiting period of 30 days and 1000 miles before any claims can be filed. Any issues that exist prior to this waiting period being completed are considered pre-existing conditions and are not covered by the contract.
 
The vehicle was taken in for service at the customers repair facility of choice, Wright Automotive, on 10/17/2011 with a concern for an engine misfire. It was found by the repair facility after running tests that the misfire was caused by low compression. At that point the vehicle was one day over the 30 day period and 86 miles over the 1000 mile requirement. According to Wright Automotive, the contract holder advised them the issues with the engine already existed prior to the policy being active and the customer expressed to his representative at Wright Automotive that he understood that the needed repair was pre-existing and would not be covered and therefore the customer decided not to submit a claim.
 
The vehicle was then taken to a different repair facility, Buchanon Auto Park, on 10/27/2011 just three miles after the first recorded repair with a complaint of a knocking sound coming from the engine. Upon teardown, Buchanon Auto Park found that there was internal engine damage. A qualified 3rd party inspector found the internal damage present to be consistent with subsequent damage from previous internal engine damage of cylinder number two. There was evidence to indicate the previous repairs were incomplete and improperly performed. These damages are long term, pre-existing and the customer was advised that because the repairs needed were clearly related to the same pre-existing issue the repair would not be covered.
 
Thank you for the opportunity to share this information with you, and I trust that you will be able to evaluate the facts and come to your own conclusion. As always CARCHEX is here to assist customers in any way possible.  Ive also included a link to another posting in which I personally was involved in the resolution were the customer was in the right and I was able to assist in getting a large transmission claim approved by the administrator; however, in contrast in the above case the customer was clearly wrong and the claim denial was correct. You can view that resolved issue that I referenced here:
http://www.ripoffreport.com/auto-warranty/carchex/carchex-enterprise-financial-g-b8129.htm
 
Also you can, at any time, reach our CEO Jason Goldsmith directly at ceo@carchex.com or 1-877-CAR-CHEX ext.1449 if you have any further questions or comments.
 
Thank you,
 
Brian Delman
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