• Report: #288947

Complaint Review: Warranty Direct, Interstate

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  • Submitted: Tue, December 04, 2007
  • Updated: Sat, March 01, 2008

  • Reported By:Los Angeles California
Warranty Direct, Interstate
333 Earle Ovington Blvd. Suite 700 Uniondale, New York U.S.A.

Warranty Direct, Interstate Would not pay warranty coverage mechanical problem. Transmission. Uniondale, New York, Internet New York

*Consumer Suggestion: Contracts

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I have an extended 100k mile car warranty with Warranty Direct for my 2003 VW Jetta. Recently at 70k miles the transmission died so I took it in to my VW dealer and had them look at it and sure enough, it needs a new transmission. Warranty Direct under my contract (attached) does cover this. But they would not authorize VW to do the job. Instead they wanted Aamco to do the job. So VW called me and told me this. I then called WD and asked for a supervisor. I was told they would not allow VW to do it because they wouldn't tear down and repair the transmission. Per VW policy, they do not rebuild transmissions at dealerships. Transmissions are factory build and rebuilt. This is an audi designed tiptronic transmission that is more complicated than the spaceshuttle. Last thing I want is some local Aamco hack mechanic with his greasy hands inside of my transmission that's going to go back into my German built car. You just know it will never be the same, if they get it working at all. VW will tear down the transmission for $680 to see what the exact problem is, but then, they will have to replace it anyway.

My contract clearly states that I can take my car to any licensed repair shop. You would think the last place they would have a problem with is the actual dealer. My car has been at VW now for 5 days sitting waiting to get issues worked out with Warranty Direct. I've had a rental car for five days. When I call WD, I can not get through to a supervisor anymore. They refuse to take my call. I'm in the process of looking for other means of contact, but I'm not having much luck. This is why I'm turning to you.

On top of that, today, without any prior authorization from me, they authorized Aamco to come and get the car from VW and take it to their repair shop. This was 10 minutes after VW called me saying Warranty Direct was not going to authorize the repair. I had to call VW and ask why WD was not allowing them to proceed, and while asking about that, they informed me they didn't have the car, that they were told by Warranty Direct that I authorized my car to be moved. When I tired calling WD back, no supervisor would return my call for 45 minutes so I called every local Aamco shop until I found the one that had my car, I told them to return it that they were not authorized to tow it, that I was the owner and had the final say. They ever had the paperwork with my name saying I was they owner. They hung up on me three times. On the third call I told them if they did not return the car in 20 minutes (they are 5 minutes from my VW dealer) I would be calling the LAPD and having a stolen car report put out on my car, including telling them who had my car. That's grand theft auto if I'm not mistaking.

I'm in the middle of my job working 14 hour days 6-7 days a week working on a project... so I can not leave where I am currently to go and find this for myself.

They assigned me another rep and he's looking into the whole cituation and I'm waiting to hear back about if they are going to authorize VW for the repair. I was pissed before but after they stole my car, I'm boiling. No way am I going to let anyone but VW do it, and per their contact they are legally obligated to allow it. If they don't that's breach of contact which gives me a pretty clean and cut case, along with the grand theft auto thing. But really, all I want is my car repaired right so I can get on with my life.


Los Angeles, California

This report was posted on Ripoff Report on 12/04/2007 04:22 PM and is a permanent record located here: http://www.ripoffreport.com/r/Warranty-Direct-Interstate/Uniondale-New-York-11553-9340/Warranty-Direct-Interstate-Would-not-pay-warranty-coverage-mechanical-problem-Transmis-288947. 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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#1 Consumer Suggestion


AUTHOR: Kenny - (U.S.A.)

The warranty that you purchased has other restrictions in the agreement that allows Warranty Direct to deny claims at the dealership. Warranty Direct does not have the right to move your vehicle to a repair facility of their choice unless it states that in the contract. However, if you have your vehicle at a VW dealership and Warranty Direct only wants to pay for a used rebuilt part, that would not be a breach of contract.

I always tell people to stay away from policies that state "we may use parts of like kind and quality or rebuilt" or whathaveyou, or a warranty that states "reasonable costs." The restrictions that an insurance company/underwriter puts in the warranty is not to protect themselves from fraud, but to protect themselves from paying out more than they have to. In this case, an aftermarket transmission is cheaper than a VW transmission and Warranty Direct wants to save that money.
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