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  • Report: #5352

Complaint Review: Preferred Warranties, Inc.

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  • Submitted: Tue, June 05, 2001
  • Updated: Sat, January 02, 2010

  • Reported By:Bristol TN
Preferred Warranties, Inc.
200 Pinebrook Place, P. O. Box 278 rwigsburg, Pennsylvania U.S.A.

Preferred Warranties excludes most anything that could cause a claim, a ripoff scam *REBUTTAL ..My Experience Was Great *EDitor's Comment

*Consumer Suggestion: The selling dealer is the true culprit

*0: PHONY REBUTTAL this is not really a satisfied customer

*Consumer Comment: My Experience With Preferred Warranties Was Great

*Consumer Comment: My Experience With Preferred Warranties Was Great

*Consumer Comment: My Experience With Preferred Warranties Was Great

*Consumer Comment: My Experience With Preferred Warranties Was Great

*0: Preferred Warranties, Inc., Pennsylvania

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On April 16, 2001, at a used car dealership in Bristol, Tennessee I purchased a 1993 Toyota Camry with 96118 miles on the odometer. At the time of purchase, I also purchased a 12-month 15000 mile powertrain warranty from Preferred Warranties, Inc. (PWI) through the dealer for a price of $345.00. After driving the car for two or three days, I noticed occasional large amounts of smoke from the exhaust and a clattering noise like a valve noise.

In addition, the car was consuming approximately one quart of oil for each 100 miles driven. I contacted PWI regarding the vehicle problems, and they gave me the names of three local repair shops. I had used one of them in the past and found their work to be excellent. They ran a few tests and said the problem was most likely lack of maintenance, especially regular oil changes. "Bill," the contact at Preferred Warranties, talked on the phone with the shop several times and asked that I allow them to tear down the engine, which I did. The teardown confirmed their earlier diagnosis, and revealed a great deal of carbon in the cylinder head ("black corn flakes"), worn-out rod bushings and piston rings, and piston scarring and other indicators of lack of maintenance.

Essentially the engine was worn out. PWI sent an inspector on May 29 to inspect the engine, take photographs, and issue a report. On May 30, "Bill" telephoned me and informed me that PWI was refusing to pay anything on the claim because the damage to the engine was there when the car was purchased and the warranty issued. I asked him if I could get a refund on what had proven to be a worthless warranty, and he also refused that request.
The car has been at the shop for well over a month now, and still sits there with the engine removed.

I emailed this information on 5/30 to the dealer urging him to stop selling PWI warranties and also sent a copy of the email to Wayne Herring, President of Preferred Warranties. The dealer felt that PWI should pay the claim and indicated that he would in fact stop selling their warranties if they ultimately denied my claim.

On 5/31, I received an email from Wayne Herring explaining that my claim was being denied because the engine damage (although not apparent at the time of the sale) "...was worn beyond serviceable limits.. ..at time of purchase from the dealer," which is specifically not covered in clause 5 of the warranty service contract.

My complaint is that I believe that Preferred Warranties, Inc. is employing deceptive practices by selling a warranty containing exclusions that potentially could invalidate virtually any claim for repairs. They also added to the delay by requiring a teardown, and they flatly refuse to consider a refund of the price I paid for the "warranty."

Click here to read other Rip Off Reports on Preferred Warranties

This report was posted on Ripoff Report on 06/05/2001 12:00 AM and is a permanent record located here: http://www.ripoffreport.com/r/Preferred-Warranties-Inc/rwigsburg-Pennsylvania-17961/Preferred-Warranties-excludes-most-anything-that-could-cause-a-claim-a-ripoff-scamREBU-5352. 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.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

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REBUTTALS & REPLIES:
0Author 7Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Suggestion

The selling dealer is the true culprit

AUTHOR: seth1066 - (United States of America)

Here's the scenario as I can gather from the consumer/victim in this case: The dealer sold a 1993 Toyota Camry to the consumer/victim with a worn out engine. This is a fact verified by the consumer/victim, after the purchase, unfortunately, via the mechanical diagnosis. In other words, before the consumer/victim purchased the warranty, the vehicle had a worn out engine.

I don't see how the warranty company is to blame. The selling dealer is quoted as stating to the consumer/victim: "The dealer felt that PWI should pay the claim..." I bet they did, but didn't this consumer/victim ever think/realize/conclude: "Hey, this crook sold me a car with a clapped out engine."

In other words, this consumer/victim thinks that a warranty company should cover any fraud perpetrated by used car dealers and that somehow it's not the selling dealer's fault that the the dealer acquired a car with a bad engine and unloaded it on him.
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#2 0

PHONY REBUTTAL this is not really a satisfied customer

AUTHOR: - ()

Sorry, this EDitor does NOT believe the above comments were made by a satisfied consumer.



When Rip-off Report first started, critics said consumers would be filing false and misleading Reports. After reading several Rip-off Reports at random, anyone would agree, the Rip-off Reports seem to be sincere and honest, and they must have been a victim. Newspaper Reports and TV Producers alike, all agree, Rip-off Report victims are real and usually check out.



What I have found, it's the unscrupulous business or individual that was reported instigating employees or friends to file bogus satisfied consumer comments.



ED Magedson

EDitor@ripoffreport.com
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#3 Consumer Comment

My Experience With Preferred Warranties Was Great

AUTHOR: Dee - ()

I recently purchased a used vehicle from a Virginia dealer. At the time, I also purchased a Preferred Warranties protection plan, since I live 800 miles from Virginia, in Vermont. Two months after buying my car, I experienced sporadic transmission slipping and took it to my local mechanic.



His diagnosis was that I would need a new transmission--scary news, indeed! I reported the claim to Preferred Warranties and followed their instructions for follow-up. Within a week, a new (used, but in good shape) transmission was on its way from Texas to Vermont, was installed in my car, and was tested by my mechanic for road-readiness.



During that week, Preferred Warranties was in regular contact with both my mechanic and me, and I was informed at every step of the way about what to expect. Upon completion of the job, my mechanic declared that he'd never worked with as good a warranty company as Preferred Warranties. I've been driving my car for a week and it's running beautifully.



rthermore, the replacement transmission is covered for the time remaining on my 45,000 warranty, so I feel reassured about the installation of a used, vs. new part.

I have no relationship to the company, and no one asked me to provide this testimony.



I wanted to do it because I'd read the letter that's been posted by the disgruntled customer with the Camry, and it scared me to death! I'm sure his letter has done significant harm to the company's reputation and it felt only fair to me to present the other side of the story. My experience was positive and renewed my faith in used car extended warranties.
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#4 Consumer Comment

My Experience With Preferred Warranties Was Great

AUTHOR: Dee - ()

I recently purchased a used vehicle from a Virginia dealer. At the time, I also purchased a Preferred Warranties protection plan, since I live 800 miles from Virginia, in Vermont. Two months after buying my car, I experienced sporadic transmission slipping and took it to my local mechanic.



His diagnosis was that I would need a new transmission--scary news, indeed! I reported the claim to Preferred Warranties and followed their instructions for follow-up. Within a week, a new (used, but in good shape) transmission was on its way from Texas to Vermont, was installed in my car, and was tested by my mechanic for road-readiness.



During that week, Preferred Warranties was in regular contact with both my mechanic and me, and I was informed at every step of the way about what to expect. Upon completion of the job, my mechanic declared that he'd never worked with as good a warranty company as Preferred Warranties. I've been driving my car for a week and it's running beautifully.



rthermore, the replacement transmission is covered for the time remaining on my 45,000 warranty, so I feel reassured about the installation of a used, vs. new part.

I have no relationship to the company, and no one asked me to provide this testimony.



I wanted to do it because I'd read the letter that's been posted by the disgruntled customer with the Camry, and it scared me to death! I'm sure his letter has done significant harm to the company's reputation and it felt only fair to me to present the other side of the story. My experience was positive and renewed my faith in used car extended warranties.
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#5 Consumer Comment

My Experience With Preferred Warranties Was Great

AUTHOR: Dee - ()

I recently purchased a used vehicle from a Virginia dealer. At the time, I also purchased a Preferred Warranties protection plan, since I live 800 miles from Virginia, in Vermont. Two months after buying my car, I experienced sporadic transmission slipping and took it to my local mechanic.



His diagnosis was that I would need a new transmission--scary news, indeed! I reported the claim to Preferred Warranties and followed their instructions for follow-up. Within a week, a new (used, but in good shape) transmission was on its way from Texas to Vermont, was installed in my car, and was tested by my mechanic for road-readiness.



During that week, Preferred Warranties was in regular contact with both my mechanic and me, and I was informed at every step of the way about what to expect. Upon completion of the job, my mechanic declared that he'd never worked with as good a warranty company as Preferred Warranties. I've been driving my car for a week and it's running beautifully.



rthermore, the replacement transmission is covered for the time remaining on my 45,000 warranty, so I feel reassured about the installation of a used, vs. new part.

I have no relationship to the company, and no one asked me to provide this testimony.



I wanted to do it because I'd read the letter that's been posted by the disgruntled customer with the Camry, and it scared me to death! I'm sure his letter has done significant harm to the company's reputation and it felt only fair to me to present the other side of the story. My experience was positive and renewed my faith in used car extended warranties.
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#6 Consumer Comment

My Experience With Preferred Warranties Was Great

AUTHOR: Dee - ()

I recently purchased a used vehicle from a Virginia dealer. At the time, I also purchased a Preferred Warranties protection plan, since I live 800 miles from Virginia, in Vermont. Two months after buying my car, I experienced sporadic transmission slipping and took it to my local mechanic.



His diagnosis was that I would need a new transmission--scary news, indeed! I reported the claim to Preferred Warranties and followed their instructions for follow-up. Within a week, a new (used, but in good shape) transmission was on its way from Texas to Vermont, was installed in my car, and was tested by my mechanic for road-readiness.



During that week, Preferred Warranties was in regular contact with both my mechanic and me, and I was informed at every step of the way about what to expect. Upon completion of the job, my mechanic declared that he'd never worked with as good a warranty company as Preferred Warranties. I've been driving my car for a week and it's running beautifully.



rthermore, the replacement transmission is covered for the time remaining on my 45,000 warranty, so I feel reassured about the installation of a used, vs. new part.

I have no relationship to the company, and no one asked me to provide this testimony.



I wanted to do it because I'd read the letter that's been posted by the disgruntled customer with the Camry, and it scared me to death! I'm sure his letter has done significant harm to the company's reputation and it felt only fair to me to present the other side of the story. My experience was positive and renewed my faith in used car extended warranties.
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#7 0

Preferred Warranties, Inc., Pennsylvania

AUTHOR: - ()

Still no response from Preferred Warranties,Inc. I am now in the process of warning dealers by email in the states where the company does business.
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