• Report: #125147

Complaint Review: The Penn Warranty Corporation

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  • Submitted: Thu, December 30, 2004
  • Updated: Sat, September 28, 2013

  • Reported By:Rochester New York
The Penn Warranty Corporation
1081 Hanover Street Wilkes Barre, Pennsylvania U.S.A.

The Penn Warranty Corporation SECURED CAPITAL MANAGEMENT Used car Warranty ripoff Wilkes Barre Pennsylvania

*Consumer Suggestion: look at the contract before you complain

*Consumer Suggestion: Sean is wrong

*Consumer Suggestion: Sean is wrong

*Consumer Suggestion: Sean is wrong

*Consumer Suggestion: Sean is wrong

*Consumer Comment: Penn Warranty

*Consumer Comment: Andrea, Read the comments again

*Consumer Suggestion: Waste of Time

*Consumer Comment: END

*Author of original report: With Sean, I can honestly see why the auto industry is failing.

*Consumer Comment: Joshua, my you are traveling in the slow lane of life!

*Author of original report: The Penn Warranty Corporation SECURED CAPITAL MANAGEMENT Used car Warranty ripoff Wilkes Barre Pennsylvania

*Consumer Suggestion: Less insane than you think

*Consumer Comment: People are insane.

*Consumer Comment: People are insane.

*Consumer Comment: Sean I just spotted this in your rebuttal

*Consumer Comment: Sean is out of his league

*Consumer Comment: Brian

*Consumer Comment: You get what you pay for.

*Author of original report: Sean, I think that is you that needs the reality check

*Consumer Suggestion: OK, REALITY CHECK!

*Consumer Comment: The consumer is right

*Consumer Suggestion: READ AND FOLLOW

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Scammed

A year and a half ago I had purchased a used car warranty from Penn Warranty Corp. of Wilkes Barre, Pennsylvania for $300.00 per year. (total $600.00)

Two weeks ago the car was running poorly so I brought it to a reputable repair shop. The automotive repair shop found that I had leaking cylinder head gaskets and it would cost $1,300.00 to tear down the engine to replace them, including all associated and necessary work that comes with replacing head gaskets. Three other shops gave me almost the same price for the job, within a hundred or so.

I called Penn Warranty Corp. to open a claim and gave them the phone number to the repair shop. The person taking the claim information had no clue to what a cylinder head gasket was! After about 5 hours both the repair shop and myself received a call from an adjuster. (I come to find out later that this was not an adjuster it was just another information taker that posed as an adjuster). Who ever they were, they gave the shop permission to tear down the engine and find the problem was and if Penn Warr Corp covered it.

Here is the clincher: Penn Warranty Corp still hadn't approved the claim as yet! I come to find out that if Penn Warranty Corp., after the tear down did not like what the repair shop findings/diagnostics were, they would have denied the claim and I would be stuck for the engine tear down and diagnostic!
This is not told to you when you initiate a claim..!!

Three days after the findings/diagnostics were faxed to Penn Warranty Corp. by the repair shop; we had not heard a word from them. I had to call and chase the claim down, since they never issued a claim number? Why, because 4 days into the repair the CLAIM still had not been approved..!!!!

Come to find out that supposedly LOST the paper work that was given to their supervisor and they had to redo all the paperwork.

Wait, the best screw-ups and scams are yet to come!!!!!

Finally, Penn Warranty Corp. says that the work is approved and tells the shop to go ahead with the job.
I called and asked for a claim number but they said that they would have to get back to me, Hmmm, very curious!!
I then asked what they were going to cover and how much? I was told that they would have to get back to me, Hmmm, very curious again.

About an hour later I receive a call from the repair shop. They were given the go ahead for $690.00 of the $1,300.00 that was quoted for the job. Penn Warranty Corp. did not call me with the covered amount they called the repair shop!

Why, because they were not covering the entire job and they make it a practice of giving the low-balled number to the repair shop and let the repair shop argue with the owner!

The following is why they only cover $690.00 of the $ 1,300.00. I will list them from the very bad to the not so good!.

a)They don't cover having the cylinder heads pressured tested or milled.

Now, any second rate mechanic knows that when you go to the expense and effort to take apart an engine and remove the heads due to a cylinder head gasket leak, the heads could be warped or cracked! Putting the same heads back on the engine with out being tested, repaired or replaced is just plain stupid or fraudulent of the Penn Warranty Corp.

Here is the clincher:
THEY DON'T CARE, because if the repair goes bad a week after it is done the fine print: on the Penn Warranty states; that they WILL NOT cover the same repair twice! Hello.!!!!!
So, if you are stupid enough or cannot afford to spend another $200 to $ 300 and you allow the shop to install the UN-TESTED cylinder heads back on the engine, it's tough fecal matter on you!

Here is the second clincher:
The repair shop won't guarantee their work unless the heads are tested, repaired or the in worse case replaced.

So, if you are stupid enough or cannot afford to spend another $200 to $ 300 and you allow the repair shop to install the UN-TESTED cylinder heads back on the engine. Not only will the Penn Warranty Corp. hang you out to dry if the repair goes bad but the repair shop will not cover their work either..!!!!

Are you starting to see the corner that the Penn Warranty Corp. backs you into..??

b)The Penn Warranty Corp. does not cover any gaskets other than the cylinder head gaskets!
Now, any second rate mechanic knows that when you go to the expense and effort to take apart an engine and remove the dozen of other gaskets that must come apart due to the cylinder head gasket leak, they need to be replaced!! This is also just plain stupid or fraudulent of the Penn Warranty Corp.

c)The Penn Warranty Corp. does not cover antifreeze or oil replacement..!!!!

Now, any second rate mechanic knows that when you take apart an engine for a head gaskets the oil and antifreeze must be replaced..!!! This is also just plain stupid or fraudulent of the Penn Warranty Corp.

d)The Penn Warranty Corp. will only cover the labor hours that they feel are correct. I went to three repair shops and asked them what they charge per hour and how many hours they would take to repair the cylinder head gaskets?

The labor book that the repair shops use states approx. 13 hours to do this job and most charged $65.00 per hour. The Penn Warranty Corp. covers only 10 hours at $ 55.00 per hour.

e)The dispute resolution number that the Penn Warranty Corp. gives you to call if you feel that you are not being treated fairly; is JUST a different DIVISION of the Penn Warranty Corp. itself! When I took them to task about this, the women at the other end of the phone tried to cover that up!!!!!

NOW, what is wrong with that picture????

Bottom line is that this is a scam and the fine print doesn't give you all the rules and they count on the fact that you did not read any of the fine print.

I found their motives and business practices deceptive and they remind me of a snake oil company. They are arrogant and just plain nasty when you question them. I would highly recommend staying far away of the company.

Whether it is the Penn Warranty division or the Penn Management Consulting Division, (which I think doubles as the dispute resolution division) I would steer very clear of this deceptive tactics of this so-called professional company.

You have been warned!!!!!!

Peter
Rochester, New York
U.S.A.

This report was posted on Ripoff Report on 12/30/2004 07:22 PM and is a permanent record located here: http://www.ripoffreport.com/r/The-Penn-Warranty-Corporation/Wilkes-Barre-Pennsylvania-18706/The-Penn-Warranty-Corporation-SECURED-CAPITAL-MANAGEMENT-Used-car-Warranty-ripoff-Wilkes-B-125147. 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 Consumer Suggestion

look at the contract before you complain

AUTHOR: Ed4Cars - ()

While the described delays are unfortunate, Penn Warranty paid the claim according to terms of the contract.  I personally sell these contracts and nowhere on there do they claim they will pay 100% of the claim.  The labor hour amount  they will pay is clearly disclosed as well as a deductible amount.  When I sell these contracts I make sure the buyer knows this warranty will cover 60 to 70% of a covered claim depending on the repair.  The blame is on the seller of the contract, not PWC itself for not disclosing what the warranty covers.  You paid $300 what do you expect?  For that amount having some coverage is certainly better then having none!  You get what you pay for.

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#2 Consumer Suggestion

Sean is wrong

AUTHOR: Cino24 - (U.S.A.)

Sean said, "First of all, every service contract provider has a list of repair centers on hand that they had worked with in the past that they can direct the consumer to if they cannot find one."

I called Secured Capital Management today and asked them... "I understand you only pay $60.00 per hour for labor hours billed. Every service provider I have called in my area (Tulsa, OK) bills at $90.00 per hour or higher. Will you direct me to a service provider in my area that bills at the rate secured capital management is willing to pay?"

The representative acted like I was from Mars and stated that it would be unduly burdensome for them to have that information in their database and it is up to the customer to find a service/labor provider in our area. He made it clear that they DO NOT have a list of repair centers on hand that they work with.

It's interesting that Sean would speak with such authority and confidence while stating something so utterly false.
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#3 Consumer Suggestion

Sean is wrong

AUTHOR: Cino24 - (U.S.A.)

Sean said, "First of all, every service contract provider has a list of repair centers on hand that they had worked with in the past that they can direct the consumer to if they cannot find one."

I called Secured Capital Management today and asked them... "I understand you only pay $60.00 per hour for labor hours billed. Every service provider I have called in my area (Tulsa, OK) bills at $90.00 per hour or higher. Will you direct me to a service provider in my area that bills at the rate secured capital management is willing to pay?"

The representative acted like I was from Mars and stated that it would be unduly burdensome for them to have that information in their database and it is up to the customer to find a service/labor provider in our area. He made it clear that they DO NOT have a list of repair centers on hand that they work with.

It's interesting that Sean would speak with such authority and confidence while stating something so utterly false.
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#4 Consumer Suggestion

Sean is wrong

AUTHOR: Cino24 - (U.S.A.)

Sean said, "First of all, every service contract provider has a list of repair centers on hand that they had worked with in the past that they can direct the consumer to if they cannot find one."

I called Secured Capital Management today and asked them... "I understand you only pay $60.00 per hour for labor hours billed. Every service provider I have called in my area (Tulsa, OK) bills at $90.00 per hour or higher. Will you direct me to a service provider in my area that bills at the rate secured capital management is willing to pay?"

The representative acted like I was from Mars and stated that it would be unduly burdensome for them to have that information in their database and it is up to the customer to find a service/labor provider in our area. He made it clear that they DO NOT have a list of repair centers on hand that they work with.

It's interesting that Sean would speak with such authority and confidence while stating something so utterly false.
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#5 Consumer Suggestion

Sean is wrong

AUTHOR: Cino24 - (U.S.A.)

Sean said, "First of all, every service contract provider has a list of repair centers on hand that they had worked with in the past that they can direct the consumer to if they cannot find one."

I called Secured Capital Management today and asked them... "I understand you only pay $60.00 per hour for labor hours billed. Every service provider I have called in my area (Tulsa, OK) bills at $90.00 per hour or higher. Will you direct me to a service provider in my area that bills at the rate secured capital management is willing to pay?"

The representative acted like I was from Mars and stated that it would be unduly burdensome for them to have that information in their database and it is up to the customer to find a service/labor provider in our area. He made it clear that they DO NOT have a list of repair centers on hand that they work with.

It's interesting that Sean would speak with such authority and confidence while stating something so utterly false.
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#6 Consumer Comment

Penn Warranty

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

We had the same experience with Penn Warranty. Lets file a class action lawsuit !!!

Angela and Lonnie
Dallas, TX
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#7 Consumer Comment

Andrea, Read the comments again

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

I am sure that your comment is appreciated but Penn. Warr. is in PA. and some of us live in NY.

I contacted the Att. Generals office in PA and NY; the beau racy to go through something like this is a nightmare. I also talked to the PA and NY BBB; these are two institutions that are completely worthless and a waste of taxpayer's money.

And this is where you are missing the point!

It is no coincidence on how Penn. Warr. positions itself as to not make it worthwhile for the common folk to spend the time to legally pursue them after being ripped off! They count on us just taking it in the shorts and going away. Am I going to spend months and thousands on Lawyers to get back $800.00?

All the grease monkeys out there like Sean from PA. want to show how much they know or may not know about cars but could not spot an unethical business if it hit them in the head with a hammer? This is probably because they are no different in their business ethics.

Recently, I purchased a new car from a GM dealer that I have never done business with before and just for the heck of it I asked them what they thought about Penn. Warr.? They had the same reaction as anyone else that has had past business dealings with Penn. Lets just say that this GM dealer will not be sending Penn. any business or birthday cards in the future.

I have never found a repair shop or a new or used car dealer that had a good word to say about them. I just happen to purchase a car from a private dealer a few years ago and this is how I was caught up in this. Penn. Warranty has a bad reputation and has burnt a lot of bridges with storefront dealers and repair shops but they offer great deals to privateers to promote their warrantees.

Because Penn. has discredited itself with legitimate dealers and repair shops they target the public and have built a good business on ripping off ignorant people and I include myself in that. But shame on me if I allow it to happen a second time..!!!

Ask yourself a question? Who uses Penn Warranty? It sure isn't a person who can afford a BMW, Audi or Mercedes now is it? They mostly target the lower to middle class with initially low prices and then renege on paying for the claim. Penn. has been at this for a long time, they know how to skirt the system. Going after them, unless you have a blatant open and shut case is like suing a lawyer. This is why I started this report; I wanted some way to tell people about Penn. Warr. and how unethical and nasty of a company they are.

They lied, cheated and are just plain belligerent towards their customers. They act as if they are doing you a favor. They know the system and keep just below the radar for the most part.

It would be very difficult to win in court and they know it!
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#8 Consumer Suggestion

Waste of Time

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

You guys really must not have better things to do. Here I am reading through pages of corresponence, expecting at some point to find some useful information on how to best resolve a situation with this warranty company. For others expecting the same: file a complaint with your local consumer fraud agency. State Attorney General offices normally have a consumer protection division and consumer protection laws to back them. While the Better Business Bureau is a decent resource for resolving minor complaints, they do not have the power or authority that a law enforcement agency possesses to impose fines and other punishments allowable by law.
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#9 Consumer Comment

END

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

Boy, New York has hillbillies too? Glad to see that the sole purpose of your life for the past few months was sitting on the edge of your seat waiting for me to acknowledge your stupidity! For the sake of consumer's who really have something of value to add, I will not be responding to this post anymore. I don't know why I expected more from someone like you, but I guess I didn't expect mental retardation to be such a deep rooted affliction. Actually, I do not work for a shop or Penn. Frankly, I would love to see Penn fall, I could care less. But they should fall for the right reasons. Not because some lazy, useless, system leaching, know-nothing backwoods dryhump thinks the world owes them something because they missed the bus to the intelligence clinic. I actually represent people with legitimate concerns. I would love to run up against you in a courtroom, I think I would even go pro bono publico on that. Well, I am done. I, much as many other contributing citizens, have a job to do. You can respond to, stroke off to or do whatever you want to this post. Keep in touch with yourselves!!!!!
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#10 Author of original report

With Sean, I can honestly see why the auto industry is failing.

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

Sean,

Your last comment was how long ago? A penny late and a dollar short my friend.

Since then, I know for a fact that Penn. was taken to court by an individual for the same fraudulent tactics that they tried on many others and me. At the last minute Penn. Warr. tried to settle but the consumer had the fortitude to take them to task. I don't know if the case was won, my guess it is still going on. I will however forward the results when I get them. Why did they try to settle? My guess is that they knew they were going to lose.

You are obviously an owner of some sort of garage or you work for Penn. Warr. and don't have the guts to admit it! I am very; very happy I don't live in Pa. and have to deal with people like you.

As far as the rest of your comments, I am not too sure how they made it to the site but I can tell you one thing you need to learn how to write!

And to answer your last comment!

Unarmed.. Guess again!
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#11 Consumer Comment

Joshua, my you are traveling in the slow lane of life!

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

Look stain, consider the fact that companies like Penn maintain a customer database of over 250,000 active consumers yearly; how does that number of complaints sound now? And the toucher from Florida? Keep working on those Briggs and Stratton mower engines; shadetree mechanics don't fall into "qualified mechanic" categories. As far as my experience with vehicles tap dancer? Well, if I do not know what I was doing, why have I been invited to HIN in Boston three years straight, Carlisle the last four years and import vs. domestics multiple times in Englishtown? I guess they just select anyone, right? Just because you were born in a stable doesn't mean you are a horse! Therefore, just because you can identify an engine from a box of cheese nips does not mean you are a mechanic! Maybe next time you can actually finish that hooked on phonics course and move on to your contract! Oh, don't get into a war of words with me "slick", you are obviously unarmed!
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#12 Author of original report

The Penn Warranty Corporation SECURED CAPITAL MANAGEMENT Used car Warranty ripoff Wilkes Barre Pennsylvania

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

This is an update on this complaint for those of you that have emailed me personally or responded to this site in the past.

As recently as last week and well before, a great deal of you have asked if I could pass on information from others who have had problems with Penn. Warranty. I did not want to do this because without the permission of those parties, I felt that it was not ethical.

There is one person that has contacted me that is taking Penn. Warranty to task. This person has asked if I had contact information from others. This person has not posted their complaint on this site but has read the string and been in contact by email.

There is strength in numbers, those of us that have been victimized by Penn. Warranty in the past and present should band together and help this person's cause.

Please do not email me on this!
I will not give out this persons email address but for those of you who have been in contact with me in the past, simply reply to this site and state your complaints. How this person uses this information or responds will be of their chioce.

This person has the fortitude to have Penn. Warranty live up to what they say are in business to do and that is to not renege on their responsibilities.

I cannot guaranty that this person will use your information, but legitimate complaints will be taken into consideration.
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#13 Consumer Suggestion

Less insane than you think

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

Listen, T. from Greensburg Pennsylvania.

No offense, but I probably have been taking care of cars longer than you have been driving. I have a vehicle right now a 1998 Jeep 4X4 that has 102,000 miles on it and it runs perfectly. That should tell you that I service my vehicles regularly. I also own 4 cars right now; with different after market warranty's, which have never, ever pulled the bait and switch tactics that this Penn Warranty Corp. company has pulled.

As far as reading my contract, apparently you have not read my entire string of complaints. The contract for this company is no longer than a newspaper article in a local periodical. AND, they don't send the contract until after you purchase the Warranty! There is no stated labor rate on the contract and even if the contract did state the labor rate, I did call up 3 different shops and all their labor rates were $65.00 per hour.
Unless you live in the back hills of Okie Muskokie, $65.00 per hour is usually the normal. $55.00 per hour is years old, go to your local car dealership and see what their rates are, $75.00 plus my friend!

You are dead wrong, wrong, wrong, when you say, Most extended warranties do NOT cover diagnostic fees and/or teardown. I just had my 2002 Chevy in for intermittent turn signal failure and faulty temperature readout. The aftermarket warranty company through the dealership waived the diagnostic fees and teardown that they said they would cover, IF they found the problems through the diagnostic procedures! They did the diagnostics and teardown and waived those fees because the problems were legitimate!

You wrote: And it also may say, repairs will only be paid for if it is a failure of a covered component, which would cover all the refills of the fluids.

The repair for the vehicle in question does state, right on the contract, that it covers head gasket failures! Hello are you in there T. - from Greensburg, Pennsylvania?

You wrote: IF it were a covered component THAT FAILED. An I.E spark plug, brakes, stuff that only costs like, $20, isn't covered. It's considered maintenance.

When you compare spark plugs that may or may not be bad and would be up to me to replace, I agree! Plugs are not essential to failed head gaskets; you can clean them and replace them. NOW, when you talk about OIL and ANTIFREEZE that has been contaminated due to the head gasket failure, it must be considered essential and CANNOT be re-used. Therefore should be considered part of the covered components, the same as the cylinder head inspection and milling so the head gasket failure does not happen again!

The difference in after market warranties is this;
If you cannot go to the shop that sold you the warranty, they can do what they want to you. My Chevy warranty was purchased through a dealer; there are warm bodies to talk to so they, by default cannot take advantage of you as easily as a company like Penn. Warranty Corp. that you cannot get at!

The moral of the story, NEVER, NEVER buy a warranty for something like a car from a company that can tell you to go fly a kite, because they can! And through my investigations Penn Warranty Corporation is known for doing just that, simply because you cannot see, feel or touch them!

You wrote: Keep the maintenance up on your car and maybe you won't have so many problems.

I think I have already answered this question T. from Greensburg, Pennsylvania!
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#14 Consumer Comment

People are insane.

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

Listen, Joshua, I do believe you are right. But I believe that it isn't the company's fault. I used to work for a warranty company and a lot of the complaints fall because the customer does not fully read their contract. At least on ours, it states what labor rate they'll pay up to, and if you have sense to call the shop and ask their labor rate you should have no problem. And it says you are responsible if you choose to stay at the shop with a higher labor rate, you are responsible for the extra fees. Most extended warranties do NOT cover diagnostic fees and/or teardown. Once again, read your warranty. And it also may say, repairs will only be paid for if it is a failure of a covered component, which would cover all the refills of the fluids IF it was a covered compononet THAT FAILED. I.E spark plugs, brakes, stuff that only costs like, $20, isn't covered. It's considered maintenence. And as I've said before, READ your warranty. If your head gaskets failed due to a non-covered component, that wouldn't be covered. And as for the complaint of "waiting," understand that you are NOT the only one with a warranty through that company. They have other people in there that were before you. I'm sure you can run to the store and buy a bottle of ant-freeze for $10. Keep the maintenence up on your car and maybe you won't have so many problems!
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#15 Consumer Comment

People are insane.

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

Listen, Joshua, I do believe you are right. But I believe that it isn't the company's fault. I used to work for a warranty company and a lot of the complaints fall because the customer does not fully read their contract. At least on ours, it states what labor rate they'll pay up to, and if you have sense to call the shop and ask their labor rate you should have no problem. And it says you are responsible if you choose to stay at the shop with a higher labor rate, you are responsible for the extra fees. Most extended warranties do NOT cover diagnostic fees and/or teardown. Once again, read your warranty. And it also may say, repairs will only be paid for if it is a failure of a covered component, which would cover all the refills of the fluids IF it was a covered compononet THAT FAILED. I.E spark plugs, brakes, stuff that only costs like, $20, isn't covered. It's considered maintenence. And as I've said before, READ your warranty. If your head gaskets failed due to a non-covered component, that wouldn't be covered. And as for the complaint of "waiting," understand that you are NOT the only one with a warranty through that company. They have other people in there that were before you. I'm sure you can run to the store and buy a bottle of ant-freeze for $10. Keep the maintenence up on your car and maybe you won't have so many problems!
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#16 Consumer Comment

Sean I just spotted this in your rebuttal

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

"The contracts also state that a consumer is responsible for diagnosis of an alleged failed part. Diagnosis or testing is the only way to verify a failure. Therefore, wouldn't pressure testing and magnafluxing a head be your responsibility as per the contract you agreed to"?

Sean,
What you describe above is part of the the repair not the Diagnosis!

The diagnosis was, wet spark plug tips, poor engine performance because of the wet spark plug tips, white smoke out of the exhaust and last but least antifreeze in the oil!

That is the diagnosis!

What was found was a hole in head gasket. And doing the repair without milling the heads, would be like putting on new brake pads after 60,000 miles without turning the rotors.
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#17 Consumer Comment

Sean is out of his league

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

If the part is bought by the shop for $85, and the list price is $125, the shop will sell the part for $125, not $285. He has no clue about how business operates. No shop will be in business long if they are selling parts for 2.5 times what the customer can buy them on their own for. DUH!
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#18 Consumer Comment

Brian

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

You are right; I also questioned the price of the Warr. but this was purchased through a used car dealer. My guess is that there was a discount since this dealer offers the policies with every car he sells. I bought a 1993 Ford Taurus that only had 25,000 miles when I bought it 2 years ago. Typical little old ladies car but it needed tires, belt, filters and fluid changes and such.

I did hear later after I bought the car that this particular motor the 3.8 liter V6 had problems with head gaskets, shame on Penn Warranty not to know that! Ford had a recall on it that lasted 10 years, how could Penn Warr. miss that? It just goes to show you that they really have no clue about car repairs, even to there own demise!

This was the first time I ever bought an after market warr. on a used car. Since this problem I have looked around for other used car warranties and again you are right, I could not find one for that car for less than $900.00 a year.

When Penn. Warr. offered me the same policy for the same $300.00 price the following 2nd year I jumped on it, who would turn it down?

Bottom line is that if Penn Warr. offers the policy, regardless of the price they should stand behind it. I sell and engineer large electronic systems that are hundreds of thousands of dollars. If I offer a software support policy or a parts and labor agreement and I price it too low and it winds up costing the company money, that is my problem not the customers.

Here is another one that they tried to pull and just backs up my case that they are just in it for the money and have no clue what they are doing.

The beginning of the third year I was sent a renewal notice on my 1993 Ford Taurus for a different 34.95 per month plan. This is after I was also sent the basic renewal plan again for 12 months @ $300.00. Two policies being offered on the same car, OK, I guess that thet wanted me to purchase a more expensive policy no problem!

It states on this new notice that it is for unlimited mileage, (where my original policy for $300 per year was limited to 15,000 miles per year) this policy also covered the air-conditioning.

Now, nowhere on the new notice did it state that it is for the "R134a refrigerant only"?

Since I have a 1993 car any intelligent company should be smart enough to know that I have the older R12 refrigerant?

So, bottom line is that if I just sent my check in to purchase this "other new" unlimited mileage policy and did not look on their web-site first, they would have not covered my air-conditioning unit if it went bad.

Is this just another deceptive practice or just plain ignorance on their part, who knows!

Fact is that the company plays the odds and when they make a mistake that will cost them money they do everything that they can to get out of paying!

The right thing to do would be, get their act together and be up front with their terms and conditions. There is very little fine print on the policy that they send you and to me it seems that is done on purpose and then the tend to make up the rules as they go.

And lastly they are so, so, arrogant!
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#19 Consumer Comment

You get what you pay for.

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

I used to sell Service Contracts, and while I don't know what year or make and model car we are discussing, $600 for a 2 year warranty sounds WAY too cheap. I used to have people go nuts when they heard my price for a contract, and say so and so sells them on the internet for only a few hundred dollars. But when someone needed a repair with my contract, it was painless, go to the dealer and say fix this, when will it be ready? I bought one myself. My transmission went in W. Virginia, I drove into the shop at 3 on Good Friday, and was on the road again by 5.

Assuming you have a Grand Am, Malibu, Contour or similar 3 year old car, a 2year/24000 miles should be at least $1200.

This Penn Warranty sounds as crappy as the Wynns warranty.
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#20 Author of original report

Sean, I think that is you that needs the reality check

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

Sean,

Give me a break, the only thing that you are doing is protecting your own fraudulent industry. Since I filed that report I have received no less than 7 emails from others that have been abused by this company. The latest was last week.

Not to mention, that if you go the BBB of Wilkes Barre Pa. right now, the company has had 155 complaints in the past 36 months. What other company that you know of has had 155 complaints in 36 months?

Unless your company Sean, gets 155 complaints in 36 months then I can understand your comment!

Not to mention that two repair shops refused to do the job for me because that have had experience with this company before! What repair shop refuses a $1,300.00 repair job no less two of them..???

Let me give you another tidy-bit of miss-information. If you go to their web-site it states that they are listed with the BBB. Now, this to me seems like that they are a member, right wrong there bubba oh, they are listed but with 155 complaints in 36 months AND NOT as a member of the BBB!

And you my friend are as ignorant as they are at Penn Warr. Corp.

Apparently you have no experience in automobile repair? Are you really going to tell me that when you have a head gasket leak that you don't, as part of the repair, do a testing of the heads to see if they are warped? Why does Ford state that they throw the heads away if they are @ 7mm out and Penn states they would mill them if they were over 7mm out! Does Penn Warr. know better than the manufacturer..??

If this is what your repair shop would do, then I suggest that find another shop!

As far as fraud, when a separate line in the contract states that they don't cover oil and antifreeze I understand that, they won't pay for your antifreeze or oil changes, OK fine!
BUT
In the fine print on the repair of the heads it does not mention that they won't cover oil, antifreeze or gaskets! When you replace cylinder heads don't you think then they should be covered? What if you brought your car in for an oil change and you got the bill stating that the $19.99 does not cover the oil itself! What if you went in for a transmission fluid change for $79.99 and the shop put the old dirty filter screen back in! Oh, yea, and don't forget that if you have new tires put on your car they don't include the air!

That is akin to the same situation as the cylinder heads if you take a part a motor you lose the oil and antifreeze, the motor cannot run without it, the engine needs oil, antifreeze and gaskets right slick!!!!

What if your house burnt down but your insurance company did not cover replacing the roof? Your house does need a roof in order to operate properly right Einstein..???

And last but not least $65.00 is average for an hours worth of work. Even your discount shops like Monroe and Goodyear charge $65.00 and hour. $55.00 was fine years ago, what world do you live in..???
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#21 Consumer Suggestion

OK, REALITY CHECK!

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

Neil; Wipe your feet and come on in to the conversation here called reality! First of all, every service contract provider has a list of repair centers on hand that they had worked with in the past that they can direct the consumer to if they cannot find one. Give them a call! The next drool puddle you left that I will wipe up would be your claim of $110.00 /hr. being the "acceptable labor rate" that the service contract provider must pay...

BRRRRRRRRRRRRRRRRT, wrong answer Junior, exit to the left. Industry accpeted labor rates would be the industry average rate encompassing an average of every repair center that had reported claims to the company in every state that the company offers its contracts in! I didn't think you would understand, so let me put it in Krayola terms for you; If the average labor rate is $55.00/hr, nationwide, then your repair center rate of $110.00, in your city, does not govern the country! Don't beleive me? Ask your insurance company what rate they pay for body repairs!

Ask any service contract providers dealing with used or refurbished vehicles / televisions/ computers and so on what type components and labor rate maximums are paid! Here that banging at the base of your head? That is oxygen trying to get to your brain; Open the window and let it in!!!!
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#22 Consumer Comment

The consumer is right

AUTHOR: Neil - (Virgin Islands (U.S.))

Don't blame this consumer for "not reading the contract". If Penn Warranty won't pay for his repairs from the mechanic of the consumers choice, they should give the consumer a list of qualified repair shops that will do the work at Penn's price.

The consumer has the right to have the vehicle repaired at any qualified repair shop. What if the consumer wants to go to a dealer? They get $110 per hour depending where you live. It seems to me that Penn wants to pay prices without regard to the repair shops price of their labor. Your wholesale price line is nonesence. When was the last time you went to a restraunt for a steak dinner? Did they charge you $4.99 per pound for the steak? That's their wholesale price.
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#23 Consumer Suggestion

READ AND FOLLOW

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

Well, I must say that I am completely disgusted by the actions of every party involved in this matter, if indeed true!

You see, I work for a service contract provider, which basically is what Penn is. I do not like, codone the actions of, or really care what happens to Penn; But I do agree with them in this matter.

The contract, in most cases, will instruct you to read, understand and agree to the terms in full, which by signing you confirm to.

Therefore, you cannot say that there are any "misleading policies" on the agreement when you stated to have fully understood the same.

Most agreements will claims that, in the evenet of a covered component failure, the use of used or non-OEM components will be authorized. There are three different price structures given by a parts supplier (aftermarket); Jobber, Over the counter and List. Jobber is what the mechanic buys parts for.

OTC is what the consumer can buy parts for, no discounts. List is what the manufacturer suggests as pricing, used to make the consumer feel like they are getting a "deal" when buying OTC. So. you made a stink about pricing.

Here is goes: The mechanic buys your h-gasket set for 85.00 from supplier(A consumer can buy the same parts for 124.00).

The mechanic in turn charges the consumer or person paying bill 285.00, or a 200.00 markup. So, you as the consumer can buy and supply the part for 124.00, but the service contract company should pay 285.00?

The contracts also state that a consumer is responsible for diagnosis of an alleged failed part. Diagnosis or testing is the only way to verify a failure.

Therefore, wouldn't pressure testing and magnafluxing a head be your responsibility as per the contract you agreed to? Finally, Chiltons, Mitchells, Motors are the three major labor guides used.

Therefore, if all three of those guides, drawing on info submitted by mechanics and auto manufacturers, are all within an hour of each other (say 10.0), then why would the mechanic be paid for 14.0? In closing, I strongly suggest that in the future you actually read and understand a legally binding contract before you spout off about "fraud" and "misleading" information; Don't mistake your lack of understanding as being blatant fraud! As I said to begin, I could care less about Penn but it is consumers like you that affect every company in this market!!!
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