Ive also had a bad experience with Direct Buy Warranty. Since it happened, Ive found out a lot which I wish that someone had told me before I bought from them. So, the least I can do is share what Ive learned in the hope that it helps someone else.
Here are some problems with Direct Buy Warrantys contracts:
Section VII of their contract, under Mediation, limits Direct Buy Warrantys losses in a mediation dispute to $1500. So, even if you deserve more in such a dispute, the most youll get from them is $1500.
Under Section VIII Part A, the contract states that if a claim is made before the expiration of the 30 day/50 mile validation period, it will be denied as pre-existing. If a customer then cancels, $250 will be deducted from the refund, even if 30 days has not expired. Are you kidding me?
Under Section VIII Part B, the contract states, If You cancel this contract after the first thirty days or anytime after a claim has been filed on your VSC [vehicle service contract], WE will refund an amount of the contract price according to the pro-rata method which reflects the greater of the days in force or the miles driven based on the term of the contract selected and the date contract began, less fifty percent of the total amount paid in by You and any claims authorized or paid on the contract by Direct Buy Warranty where applicable by law [emphasis added].
In the same Section and Part, the contract states, In the event that the dollar amount of claim/claims paid for Your vehicle exceed the amount of Your refund (less fees), You will be responsible to reimburse the administrator. That means that YOU have to pay THEM if you cancel and what youve paid is less than what theyve paid in any claims! No one else does that.
Direct Buy Warranty is selling in all 50 states, claims that they are insured, but their contracts give no evidence of carrying insurance. So, if they go out of business, good luck all youve got is a piece of paper.
That the terms of Direct Buy Warrantys contracts are extraordinarily advantageous to Direct Buy Warranty at the expense of the consumer is evident. In addition, using publicly-available internet tools, Ive learned that all of Direct Buy Warrantys business addresses are actually UPS Stores! Their website lists their European HQ as:
Beletti Management Ltd.
Continental Risk Management CRM
Lordou Vyronos 33
Larnaca P.C. 6023
This same location houses a pornography production company unbelievable but true. Given what resides at their other addresses, there is strong evidence that Direct Buy Warranty is based outside of the United States that is not a good thing. In a consumer complaint filed online, the customer notes that his credit card charged was processed in a foreign country. According to another complaint online, a Direct Buy Warranty agent explained by saying that they are a global company.
Who is making sure that Direct Buy Warranty is abiding by all applicable laws, especially if they arent an American company?
If youve been scammed by Direct Buy Warranty like I have, then do what I did: Go to your states insurance commission. My state is looking into right now, and will probably find out what I already did the hard way, which is that they really arent a legitimate operation. Heres a link to find your states insurance commission http://www.naic.org/state_web_map.htm Obviously, if you havent bought yet from Direct Buy Warranty then DONT STAY AWAY!