• Report: #1161128

Complaint Review: CarChex

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  • Submitted: Thu, July 10, 2014
  • Updated: Thu, July 10, 2014

  • Reported By: Viky — Chevy Chase Maryland
www.carchex.com , Select State/Province USA

Auto Warranty Scam by CarChex - Royal Administration Services Auto Warranty Scam - CarChex - Royal not honoring contract agreement Baltimore Maryland

*UPDATE Employee: Found a Resolution WITH Customer

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 Beware of purchasing an auto warranty from CarChex! I purchased an expensive CarChex/Royal Administration extended warranty policy for $3,090.00 for a Silver Coverage. Since the purchase I have not had any issues with my BMW 328i 2007 since I take good care of it. However recently, the window regulator of my left rear window has been failing and my window is not going up. But since I purchased a warranty so that I wouldn’t have to worry for this type of failures I was confident that there was nothing to worry about. For reassurance, I went back to my contract agreement which states: “2. GENERAL TERMS The following General Terms are applicable at all times: … B. FAILURE OF COVERED COMPONENTS: We will pay or reimburse You for reasonable costs to repair or replace a Covered Component in the event of a Breakdown. Our amount of authorization may be based on the utilization of new parts, remanufactured parts, or replacement parts of like kind and quality. C. APPROVAL OF COVERED REPAIRS: All Covered Repairs must receive prior authorization by the Administrator. The Administrator may be contacted at (800) 871-0467. … 3. COVERAGE This Contract covers ONLY the components/parts listed below: ... ELECTRICAL: Alternator, voltage regulator, starter motor, starter solenoid, ignition switch, front & rear wiper motors and switches, washer pump and switch, headlamp switch, turn signal switch, rear defroster switch, AC/heater blower speed switch, power window motors, regulators and switches, power door lock actuators and switches.” Since the agreement was clear that it would cover the window regulator, I went and followed the instructions for a claim and brought my car to the shop.

The next day, after the diagnosis, the shop called me to tell me that they received the authorization from the warranty which I thought was good news. However they added that there would be a ~$250 balance since the warranty would not cover the whole cost of the repair. My deductible is $100 and this is all I can afford right now. I got so shocked by the news that I decided to call the administrator to get a better understanding of the situation. When I called Royal, they said I had to talk to Carchex because they are the ones I had the contract/agreement with. When I called CarChex they said that Royal was the administrator they are the ones to negotiate with. Both companies refused to let me talk to a supervisor and continued repeating that they will only cover a certain amount of hours for the job. They tried to make me understand that I should be directing my concerns to my shop instead for charging for more hours. Why would I need to have a warranty if I wanted to deal with the shop? Nowhere is it said in the agreement that a component replacement/repair would be covered to a certain limit. If I knew there was possibility that a covered repair would not cover fully the costs other (minus my deductible) I would have reassessed the need to have a warranty or reassessed where I would bring my car. Now that my car is already at the shop even if I would want to shop around and go to another place I would still have to pay for a $140 diagnosis fee so it would just not make any sense whatsoever.

I tried to negotiate with them saying that in the future I will not go to the same shop and would go to a cheaper one if I have to, and to please be considerate since it is my first time using the service. I even begged them! They started yelling at me as if they were the victim! Can you believe that? They continued repeating that there is nothing else that they will do and would not consider my case. Basically they continued refusing to resolve the situation with me. I am extremely frustrated and feel that I am being ripped off by them. I feel that they have the worst customer service ever and do not know that their client’s satisfaction should be their goal. They are clearly not aware of that. Therefore I would recommend anyone to stay away from them and not to make the same mistake I did. I have been doing research and seeking legal counsel. I prefer losing money through legal/resolution actions rather than letting this go... That is how disappointed I am.

This report was posted on Ripoff Report on 07/10/2014 03:40 PM and is a permanent record located here: http://www.ripoffreport.com/r/CarChex/Select-StateProvince/Auto-Warranty-Scam-by-CarChex-Royal-Administration-Services-Auto-Warranty-Scam-CarChe-1161128. 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

Found a Resolution WITH Customer

AUTHOR: Brian - ()

My name is Brian Delman and I am the Customer Support Manager at CARCHEX. Fortunately,we were able to obtain a complete resolutionwith this customer regarding this matter.

With that said, we still believe it’s important for us to provide the facts behind any customer complaint and allow the public to determine the credibility of the complaint to help determine the validity of the complaint.

In this case, the customer’s Vehicle Service Contract (VSC) did provide coverage for the window regulator. However, as per the terms in the customer’s contract, the VSC administrator used the National Labor Guides to determine proper repair times for the customer’s vehicle.  The most reputable repair shops nationwide also use those same National guides to determine labor times for repairs. The standard for the repair in question called for 1.7 hours to repair the window regulator and the repair shop was charging for 3.5 hours, more than double the appropriate time for the repair.

As for the customer’s claim regarding being yelled at on the phone, it’s simply not true.  In fact, we responded very calmly while still trying to assist the customer. Further, we took the time to explain that these contracts are going to abide by the National Labor Guides, as is the case with the majority of service contracts. We advised the customer that this particular repair shop was charging more than double the normal allowed repair time.

Sadly, we come across this issue more than you might think, and plenty of repair facilities try to take advantage of a VSC provider and the customer.  Our business exists to help protect consumers from high repair bills, from being overcharged, or taken for a ride on a repair, which was clearly happening here.  We realize it’s easy for a repair facility to blame us, but the fact remains this shop was overcharging the customer, plain and simple.

As always, the CEO of CARCHEX, Jason Goldsmith, makes his information readily available on our website and every piece of communication sent to our customers. If you are ever in need of assistance, you can reach him directly at CEO@CARCHEX.COM or by calling 1-877-227-2439 Ext.  1449.

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