Carchex - Jason Goldsmith & Tom Stratchko Carchex and Royal Administrative Services are major RIPOFFS! Baltimore Maryland

I just logged in and noticed that the CEO of Carchex, Jason Goldsmith, had the nerve to respond to my rebuttal with his continual lies about the condition of my vehicle in order to continue with his fraudulent claims of reimbursement denial.  These guys shouldn't be allowed to sell newspapers, let alone something as important as an extended auto warrantee where they are allowed to violate the trust and confidence of the American public in the interest of making a profit!  Do yourself a favor and learn from my misfortune and unpleasant experience.  Steer clear of these unscrupulous liars!

The so-called factual response submitted by the CEO, Jason Goldsmith is an outright lie which he he still trying to sell to justify the fraud exhibited by his company Carchex.  My vehicle never showed any signs of leakage, never needed the replenishment of fluids and never ran hot, none the less overheated, in order to blow a head gasket.  These so-called facts were fabricated by Jason in order to avoid having to pay for a justified claim.  In fact, Jason had Tom Stratchko call me up to inform me that Carchex was not reponsible for the product they sold to me, but they would cancel a policy they just told me they were not responsible for because it was cheaper for them to do that, rather than pay for the covered repairs.  At the same time I was also threatened that I wouldn't like the outcome if I didn't sign a release they sent me to cancel the contract. 

Now I don't know about you, but this company gives fraud a whole new meaning when on the one hand they sell you a fraudlent policy and on the other they tell you they are not responsible for it, but will cancel it if you sign a release releiving them of their responsibility to cover your claim!  In addition, they fabricate lies in order to deny a valid claim.  You can't driive a car with a failed radiator and water pump for 1,700 miles and 50 days in an effort to defray the cost of maintenance.  When a water pump and radiator go it needs to get taken care of immediately.  However, according to Mr. Goldsmith, you can make up a pack of lies in an effort to deny a valid claim.

My vehicle showed no signs of any of the pre-existing conditions they are claiming and up until the time of the problem, was running as it should have been.  Their claims of leakage and overheating are simply outright lies designed to defraud an unsuspecting consumer and to save their company from paying out claims.

Carchex and Jason Goldsmith should be considered major frauds to be avoided at all costs!

Michael Harnett,

We understand why any customer would be unhappy when a claim is denied but we also think it’s important to state the facts around a customer’s complaint.

Mr. Harnett purchased a vehicle service contract administered by Royal Administration Services from CARCHEX on 3/29/2014 with a starting mileage of 104270. A claim was filed through Royal on 5/16 with a claim mileage of 105952 for a failed cylinder head. The claim was filed just 18 days and 682 miles past the completion of the standard 30 day and 1000 mile waiting period. The purpose of the waiting period is to ensure that the vehicle is operable. Anything that occurs prior or during this period is considered pre-existing as per the terms of the contract.

The vehicle was disassembled to demonstrate the failure and Royal sent out an independent 3rd party inspector on 5/30/14. According to the inspection the vehicle was driven with a cracked radiator and leaking water pump causing the vehicle to overheat. The headgasket then failed as a result of the overheating. Royal denied the claim based on their assessment of the water pump and radiator leaks being longterm (pre-existing to the completion of the 30 day/1000 mile waiting period) and the head gasket being subsuquent damage from driving the vehicle under an overheating condition.

Mr. Harnett contacted our offices on 6/4 and 6/10 to dispute the denial. Despite Royal Administration denying the entire claim for a pre-existing condition with subsequent damage, we offered good will to Mr. Harnett and agreed to either reimburse him for his water pump repair or provide him with a full refund if he decided to cancel. He was also provided with the instructions on disputing a claim directly with Royal per the terms of the agreement.

The take-away from this claim denial is that a vehicle service contract is not for taking care of that currently existing noise under the hood, looming repair your mechanic warned you about, or in this case that coolant on the garage floor. A Vehicle Service Contract is a great way for budgeting for future repairs. The vast majority of our customers understand that and enjoy the benefits of the peace of mind a vehicle service contract can provide.

As always, the CEO of CARCHEX, Jason Goldsmith, makes his information readily available on our website and every piece of communication that is sent to our customers. If you are ever in need of assistance you can reach him directly at CEO@CARCHEX.COM or by calling 1-877-227-2439 ext. 1449.