U.S. Dealer Services GotWarranty.com Targets Senior Citizens With Unnecessary Car Warranties Allenhurst Internet

I received an unsolicited phone call from this company around New Years, where they were able to tell me what kind of vehicle I drove, and correctly assumed that the vehicle was no longer under warranty.

We talked quite a bit about my vehicle, where he shared that he heard there were electrical problems that could plague me down the road. In talking to him, I was convinced that I would buy the warranty, and elected to do a payment plan. I put around $250 down, and then I would pay just under $130 a month for 18 months, although the policy would continue for about two years after that.

I felt good that I had secured my vehicle for a few more years, especially since it was now eight years old, and I didn't want to be surprised with any sudden expenses.

A few days later, I shared the news of buying the policy with my son, who was immediately skeptical of it. He asked me what exactly it covered, and I realized I didn't know. He asked me what the company could use as grounds for denial, and I didn't know that either. He also asked if I had figured out what my total payments would be, which he did: about $2,500, for a vehicle that is probably barely worth double that. 

I realized that it didn't make much sense to do it. In order for me to even break even on this plan, I would have to have $2,500 in repairs covered, and that is a lot. My son made me realize that if my car had that many problems, I would just trade it in for something newer, that it would make little sense to throw that kind of money at the car. 

I decided that I would cancel the policy, since it hadn't started yet anyway. I called the sales person a couple times, only to learn he was not there. My son, however, stepped in, and just called the general number, and very politely explained that I no longer wanted the policy, and that I wanted to cancel. I confirmed that for the person on the other end of the line, and we were told that we had to be transferred to another department to handle the refund.

We waited a few minutes on hold before the CSR returned and explained that they were all busy, and they would call us back. My son made it clear that they needed to do that sooner rather than later.

About 25 minutes later, they did call back. I answered the phone, and I was immediately peppered with questions on why I wanted to cancel. I made it clear that I did not have the literature they said they would send to see what exactly was covered, and even without that, I simply changed my mind. It was an acceptable period to change my mind, especially since coverage had yet to start. 

The man on the other end kept asking me questions about the mailing, describing it, saying I might have missed it, and suggesting that maybe I wait until they have a chance to resend it. I repeated that it didn't matter, I had changed my mind. The man scolded me, telling me I had already told him that more than once, and that I needed to answer his questions about the mailing.

Seeing that this was starting to upset me (my wife and I are in our 80s), my son took over. He stated that I made it clear that i wanted to cancel, and that he had a responsibility to issue a refund of the downpayment. He made it clear that the downpayment was not a deposit, but was in consideration for services that were never received.

The two argued a bit, with the man on the phone trying to get the upper hand in the coversation, and even mocking my son at one point. My son told him that in his line of work, it's not difficult to look up companies, and that his company (based on the phone number and services provided) currently had an F rating with BBB. The man claimed that was false, and they were in fact accredited with BBB, with an A-plus. 

The man kept asking for my email, and my son did not want to give him mine, so he provided his own after the man claimed they needed "email" verification to receive the refund. A couple hours later, we did receive an email, informing us we had to send a hardcopy letter to an address in New Jersey stating we wanted to cancel. It provided no timeframe on when the refund needed to be received, but it made no sense that they could take my money over the phone, but required a hand-written and signed document in order to cancel and have my downpayment returned.

The man told my son that they are a "new" company, but he stated he didn't believe that. He said it was impossible to believe that all the companies that keep getting this 877 number were warranty companies, and when he read other reports from customers with bad experiences, it seemed the offerings were almost identical. He also told them that what was far more likely was a company that simply continually changed its name on a regular basis, used by scammers to help sidestep savvy consumers who might Google the name the same time the company is on the phone with them.

My son made it clear that he not only Googles the name, but also the number, since these scammers might change their name, but not their number, and that is how he found past ripoff reports, and the F-rating from BBB. 

It seems that the company has little interest in refunding the money, and who knows who else they might convince to purchase these warranties. Maybe with higher-end cars, a $2,500 warranty is a good idea — but for a 2008 minivan? I wish I would've had a chance to think about it first. And I'm sure if this company was aggressive to both myself and my son, imagine what they must be doing with others.