ED Magedson – Founder
Direct Buy Warranty33bWood Ave South . Iselin, New Jersey USA
Direct Buy Warranty SCAM .SELLS AN EXTENED WARRANTY AND FAILS TO HONOR CLAIMS Iselin New Jersey
In May of 2013 I purchased an extended warranty on my 2002 GMC sierra pickup from a company called Direct Buy Auto warranty. I paid $1900.00, with bumper to bumper coverage with no deductible. It was supposed to cover every thing on the truck except maintenance items, tires, hoses, fan belts, ect. In August 2013 my air conditioner started to make a noise.
I called Direct Buy and reported the problem. I was given a claim number and instructed to take the truck to any repair place of my choosing and have the truck checked and get an estimate for repair. I took the truck to the GMC dealer in Reno,Neveda. The dealer determined that the air conditioner compressor needed to be replaced and the system needed to be flushed out due to metal shavings in the system.
When the GMC dealer called Direct Buy for authorization for repair the GMC dealer was told not to repair the truck. Direct Buy insisted on having one of thier adjusters come to the repair center and inspect the truck. About two days later Direct Buy called me and informed me that they were denying my claim. When I asked why I was told (YOUR CLAIM IS DENIED BECAUSE YOUR AIR CONDITIONER FAILER WAS CAUSED BY EVERY DAY WEAR AND TEAR USE). I could not believe what I was hearing. Talking about being scamed. I called the GMC dealer and told them what I was told by Direct Buy. The GMC dealed could not believe it either.
Because Direct Buy Auto Warranty is located in the state of New Jersey. I called the New Jersey Office of the Attorney General,Division of Consumer Affairs to see how this company could get away with this type on business practice. I was told that they are quite aware of Direct Buys business practices. They have 64 complaints on file and that they are working on resolving the complaints. I was encouraged to file a complaint, which I am in the process of doing.
This report was posted on Ripoff Report on 08/19/2013 12:15 PM and is a permanent record located here: http://www.ripoffreport.com/r/Direct-Buy-Warranty/Iselin-New-Jersey-08830/Direct-Buy-Warranty-SCAM-SELLS-AN-EXTENED-WARRANTY-AND-FAILS-TO-HONOR-CLAIMS-Iselin-New-1077068. 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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