In November 2000, I entered a contracy with WarrantyUSA for a warranty policy for my car. I paid $260 up front and gave permission for $79.67 to be charged each month for a total of 18 months. If I made no claims on my warranty, the full amount was to be refunded. The contracty also included emergency road service.
Several months after entering into the contract, I needed emergency road service the WarrantyUSA did not provide the service promised. I discovered in the process that they had made no arrangements with wrecker services in the the area to fulfill the contract.
I then tried to cancel the contract at that time (some time in 2001) and get a refund. I was told that I could only get a refund after all 18 payments had been made and THEN I could collect the refund IF the warranty had not been used.
On 10/16/01, the 11th of 18 payments was made. Three months later, on 1/4/02, the 12th of 18 payments was made and three days later on 1/7/02 the 13th of 18 payments was taken from my credit card account. After that no more withdrawal (charges) were made.
At this point, $1295.71 had been paid to WarantyUSA and NO service had been given.
On June 7, 2002, I contacted the company and they said that payments would be re-established in one to two months and that they would honor the contract to refund the money if the warranty was not used.
I now believe that the company plans to keep the $1295.71 and "call it quits", never honoring their contract or warranty. At this point, I do not want to give them permission to withdraw any more funds from my credit account.
Furthermore, since over 18 months has elapsed since the beginning of the contract and the warranty has not been used, I believe that they owe me a full refund of all moneys paid to them.