First Extended Service Corporation ripoff - denied claim Dallas Texas

You service agreement is between YOU and your SELLING DEALER.

First Extended Service Corp (FE)has an agreement with your Selling Dealer to "monitor" claims against the Dealer under the extended service contract you paid for. In this case "monitor", in my opinion, means to find a way for the Dealer to get out of honoring his agreement with you.

Here's how it supposedly works: The Dealer pays FE a minimal fee ($200-$500) for "monitoring" the Dealer's warranty. Then, the Dealer turns around and charges you $1,200-$2,000 for a warranty that "appears" to be between you and FE. The Dealer keeps 100% of the amount he charged you (this is a consistent statement from several local Dealers or GM's, some of which are personal friends or family of mine, therfore, I do not warrant these statements nor claim them as my own. Furthermore, they suggest NEVER buy anything but the Manufacturer's Extended Warranty...even if you pay more...at least it will be honored).

If you read your agreement with a fine tooth comb, you will discover the following terms:

"This agreement is not an insurance policy, it is an extended agreement between YOU and the SELLING DEALER. All obligations and liabilities for repairs covered by this extended agreement are those of the Selling Dealer."

It is the Selling Dealer who must authorize the repairs, NOT FE. It is FE's responsibility to the Dealer to throw you off, and explain to you a reason why your claim is denied.

It is likely that many of the Dealer's employees are unaware of this unethical and possibly fraudulant practice, hence their showing empathy for you and acting as if they are trying to help. Many employees will even gossip as to the reputation of FE...not knowing the Dealer's intentions.

According to my sources of advice: Dealers fear most the DMV! They are only allowed a small number of ticks on their record before DMV threatens to pull their license and/or fine them.

The BBB is a PROFIT organization...they want to keep their membership fees rolling in, if you know what I mean. Senseless unless your Dealer is NOT a member. Even then, you may be spinning your wheels.

I suggest starting with a certified written demand directly to the owner of the Dealership, or his Agent for Service Process, letting him know you have done your homework! Tell him if he denies your claim you will start with a complaint to the DMV. Tell him you have satisfactory maintenance records, which only the DMV and Supreme Court Judge will view and rule on if he fails to comply with your demand.

If it must go that far, sue for the full amount of the warranty you paid for, plus interest, the amount of the repair, rental car (if applicable), loss of business (if applicable), cost of insurance paid on an out of sevice vehicle, and fraud / misrepresenation.

Print copies of ALL the RippOff Reports and any others you may find on FE and Coleman Powersport.

Good Luck,