• Report: #1008158

Complaint Review: Carchex

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  • Submitted: Sun, February 03, 2013
  • Updated: Sat, April 12, 2014

  • Reported By: Drew3774 — Manville New Jersey United States of America
10950 Gilroy Road Suite D, Hunt Valley, MD 21031 Hunt Valley, Maryland United States of America

Carchex Alpha Warranty Services Carchex tried to buy my silence about my experience! Hunt Valley, Maryland

*Author of original report: Carchex is a ripoff

*UPDATE Employee: The Customer’s Claim Was Never Actually Denied

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Back in December 2008 I purchased and Extended Auto Warranty from a Carchex representative.  I was not allowed to view the terms of the warranty but I was told over the phone that it will cover most all possible problems with my vehicle.  I also purchased the upgraded package that provided coverage of ALL seals and gaskets.  I ended up paying $1900.00 for this policy.

Over the years I never had a single issue with my car that required me to file a claim.  Then in November 2012 my check engine light came on and I immediately brought the car to my mechanic.  It was after 5pm on a Friday and he would not be able to do anything for me until Monday.  We determined that my car was leaking coolant and so we added coolant and agreed that I would bring my car in the following Monday so he can take a look at it.  My car was a 2005 Chevy Equinox and it only had 63,000 miles on it.  I took very good care of my car and I obviously didn't put many miles on it.

That Monday when I brought my car into my mechanic he determined that my car was leaking coolant somewhere and we contacted Carchex and Alpha Warranty Services to open a claim.  My mechanic told them my car was leaking coolant into the engine because there were never any puddles under my car.  Carchex and Alpha Warranty Services told him to perform a complete teardown of my engine to determine the cause of the leak.  My mechanic has many years of experience dealing with Warranty companies and he told me that if he tore down the whole engine like they requested they would deny my claim and make me pay for the whole repair which would cost upwards of $3000.  He only did a partial teardown and determined I had blown my lower intake gasket.  Since I purchased the coverage of all seals and gaskets on my policy I was hopeful that the repairs would be covered.  I was wrong.

Carchex and Alpha Warranty Services flat out refused to cover any costs of my repairs (which was only $978.00) because they considered the damage to be caused by overheating.  They never offered to send a representative out to inspect the damage, and they never offered a reason as to what caused the overheating.  In my mechanics and my opinion the gasket blew and this caused the coolant to leak into the engine, thus causing the overheating.  Since my package covered gaskets I should have been covered but I was continually denied over and over again by Carchex and Alpha Warranty Services.

Finally after debating back and forth with a Carchex representative about my claim, Carchex COO Ben Fenlon contacted me directly and told me that during their investigation of my claim they found many improprieties by Alpha Warranty Services and they admitted that they never offered to send an inspector out to view the damage to my vehicle.  He also stated that all phone calls to their customer service department are recorded, but somehow they "lost" the recordings of some of my phone calls.  Due to this he offered to reimburse me half the cost of my repairs.  I agreed but then he told me he was going to send me a contract to sign in order to facilitate my reimbursement.

I looked over this contract and they stated that they were willing to pay me for half of my repair bill if I agreed to not disclose the terms of our agreement and waive my right to speak or post on social media about my experience with Carchex.  I saw these terms and flat out disagreed.  It's my right to spread the word about my experience.  Carchex is an absolute ripoff and a scan.  I paid $1900 and file one claim for $978 so they still made money off of me.  I purchased coverage for gaskets and seals and yet they still deny my claims.  Their whole coverage is a scam.  They will not cover any damages to your vehicle because they will always use the "overheating" excuse to deny peoples claims.  This post here has cost me $489.  If you don't believe me I will forward you the contract that Ben Fenlon sent me. 

I urge all of you to avoid purchasing any extended auto warranty from Carchex and Alpha Warranty Services.  They are a complete scam and are not interested at all in helping people.

This report was posted on Ripoff Report on 02/03/2013 09:17 AM and is a permanent record located here: http://www.ripoffreport.com/r/Carchex/Hunt-Valley-Maryland-21031/Carchex-Alpha-Warranty-Services-Carchex-tried-to-buy-my-silence-about-my-experience-Hunt-1008158. 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 Author of original report

Carchex is a ripoff

AUTHOR: Drew3774 - ()

I love reading the wonderful rebuttal by the Carchex people.  Let's get back to the facts of the situation. 1)  My car overheated.  2)  The engine warning light failed to come on indicating the engine was overheating.  This should have been covered under their warranty.  3)  Coolant was leaking into the engine due to a faulty gasket.  As I said before, I purchase the extra protection for the sealants and gaskets so this should have been covered under my policy.  4)  My mechanic had already determined the cause of the leak, yet Carchex wanted him to completely break down the engine to make sure.  My mechanic has worked with Carchex before and knows their scammer tactics, and this is just a way for them to screw you out of more money.  A complete engine tear down costs $3000 minimum!!  To have my mechanic do that just to have Carchex turn around and say that despite the fact their was a faulty gasket the car still overheated and we do not cover that, would have screwed me out of over $5000 for the total repair instead of the $978 that I spent.  The car was 8 years old and there was no way I was going to soak another $5000 into it when it should have been covered by my self proclaimed wonderful extended auto warranty by CarChex and Alpha Warranty Services.  I would sincerly urge any and all people to not waste your money on an extended auto warranty unless it comes straight from the dealership.  Contrary to what Carchex says, it is a complete ripoff!

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#2 UPDATE Employee

The Customer’s Claim Was Never Actually Denied

AUTHOR: Alpha Warranty Services, Inc - ()

We missed this complaint from before but wanted to respond to this customer’s concerns. We can't speak to anything regarding Carchex but would like to respond on behalf of Alpha Warranty Services. We regret hearing that he did not have a good experience. We would like to provide further light on the claim that was filed. On October 22, 2012, we received a call from the customer’s repair facility opening a claim. The repair facility stated that the customer had “coolant leaking in the engine and the engine is overheating.” His repair facility stated that they needed to perform further diagnosis before determining the cause and extent of damage.

Later that same day, the repair facility called back and stated that they, “had tested the coolant and found bubbles in the radiator.” Per the terms of the vehicle service contract, our claims adjuster told the repair facility to get the customer’s authorization to have the affected components torn down to the point of failure and then call us back with cause of damage and components that needed repair.  The repair facility was also instructed that after it was torn down to “call us back to have a 3rd party inspector sent out to verify the failures.”

Unfortunately we never received a call back from the repair facility. The customer expressed their frustrations online but we never received a call from the repair facility to move forward with the next step in the claims process. After further investigation, we found that the customer’s repair facility had told the customer that the problem was likely caused by overheating so it wouldn’t be worth tearing the component down to the point of failure and inspecting. Overheating, which in this case was caused by continued operation of a vehicle with a known problem, was specifically excluded under the terms of their coverage. The customer agreed with the repair facility that it would not be worthwhile to complete the claims process based on the repair facility’s recommendation and completed the repairs on their own.

We regret this customer’s frustration but we hope this further explains the customer’s concern and the fact that we never actually completed the claims process at the customer’s discretion. We have been chosen as a top provider in our industry by numerous companies and work hard to keep our customers happy.

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