Gold Key Warrantee - Automobile Consumer Service Corp., Huntsville, AL Denial of Coverage of Warranty Huntsville AL

When my 2003 Subaru Outback suddenly stopped after making some strange belt noises intermittantly during the day, I had it towed to the Dealership. The service department diagnosed the problem as a "crumbled" tensioner that subsequently damaged timing belt, shearing off some teeth and bending the valves. I was told I would need to rebuild or replace the engine. The belt had been changed at 115,000 miles and had only 50,000 miles on it, but unfortunately I was not advised to change the tensioner or idler pulley at that time.  I provided the service dept the Warrantee information and was told later that the Automobile Consumer Service Corp (ACSC), which handles the claims, was requiring the service dept to break down the engine in order to prove that the valves were bent. 

I had to agree to cover the $500 labor cost to break it down if no valves were bent. The assistant service manager assured me that at least one valve was bent (probably all 8) as the sound when the new tensioner and belt were put on was awful, and the sound was clearly indicative of bent valves.   I agreed to cover the cost with the expectation that the warrantee would eventually cover it when they rebuilt the engine.  ACSC sent an inspector an after 3 days with no word, I called  the service dept to find out if the inspector had come and was told,  "Yes, he was here this morning and said it was not a covered service due to the tensioner not being covered." I emailed a copy of the page clearly indicating that the "tensioner(s) and retainers" were covered.   I then waited several more days for some word.

I called ACSC to find out what the hold-up was and the very irritable ACSC rep. argued with me that it was NOT a tensioner but an "idler bearing" that caused the problem and there is nothing in the contract that states the words "idler bearing".  I told him I had NEVER even heard of the "idler bearing" and requested he send me  a copy of the report.   Instantly, the rep. snapped, "No, I paid for it."   I was shocked!  I stated that I paid nearly $3,000 for the warranty and that if I could not read the report, I could not be sure they are being honest with me. 

I told him I had put in a call to my attorney the day before to seek advice and suddently he shouted at me, "If you are threating a law suit, this conversation is over!"   Now completely shocked, I told him I never threatened anything, I am simply stating facts.  I am not getting anything in writing and need to know how to obtain the information.    After a minute of listening to this craziness, I asked how to cancel my policy and was transferred to a woman who was equally non-consumer friendly. I asked if she could tell me approximately how much I would receive in a refund and how it would be calculated and was told that I would have to apply for the warrantee cancelation first.

The following day the ACSC Manager left a message for me to call him.  After I had spoken to my attorney ( being advised I would likely have to take them to court) and got the service department at the Subaru Dealer to give me  a written estimate and statement of what had transpired over the past 2 weeks, I returned the call to the ACSC Manager.   He explained to me that the tensioner (a covered part) was not the issue, as the idler bearing was what caused all the damage. He agreed to send me a copy of the Inspection Report and told me the reason they needed to have the engine broken down was NOT to see the valve damage, but that the service department was unable to explain to them what caused the problem.    He reported that he had no reason to try to avoid paying the claim, that he was just going by what was written in the contract.

After researching on the net and talking with mechanics, I now know more than I ever wanted to about the timing system of a Subaru.  I believe completely that the idler pulley (not bearing... as those are the balls inside the metal cylinder) was intended to be covered as part of the entire system.  It works as a "tensioner" and the contract states the term as plural, "tensioners" and it is part of the system which "requires lubrication" which is stated as covered in the engine and all other systems covered.  This is a symmantic issue and a way of getting out of paying for the repairs.  In addition, they NEVER asked me to tell them what happened before the car failed. 

I am certain that the belt noised that I heard intermittantly before the car stopped very quietly was due to the failure of the tensioner which allowed the timing belt teeth to be sheared off and may have become lodged in the idler pulley which then locked up.  If the idler pulley locked up and the damage to the tensioner and belt happened AFTER the pulley locked up, there would have been at least some sort of sound.  In fact, the car died so quietly as I came around a turn with a yield sign, that I wasn't even sure it was dead until I pulled over, turned the key and there was no sound.   I will appeal this decision, I assume I will be denied again, and I will take this as far as necessary.  By contract, I agree to take in only to Small Claims Court..... hmm, they have it all worked out....  I will pay out of pocket to rebuild the engine as it is now a month since it died.