Report: #510453

Complaint Review: Alpha Warranty Services, INC

  • Submitted: Fri, October 16, 2009
  • Updated: Thu, December 22, 2011
  • Reported By: Elena — Nutley New Jersey USA
  • Alpha Warranty Services, INC
    PO Box 593 Draper, Utah 84020
    Draper, Utah
    United States of America

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On August 4, 2009, my boyfriend and I purchased an extended warranty for our BMW. We orignally contacted CarChex after some research on the Internet. The representative did state that they use a third party warranty company Alpha Warranty Servies, and we were informed that they are an excellent service and we will have no problems. The contract states that the warranty takes affect 30 days AND 1,000 miles after purchase. We specifically asked the question if something goes wrong on the 31st day will they honor it. He said yes no questions asked as long as you also meet the mileage requirement. So it seemed like a good investment. We then had a contract emailed to us, read it over, asked our questions and purchased it for $4,179.00. I would also like to mention that the warranty was purchased in full. We were also told that we will be receiving a $100.00 gas card (which we have yet to receive, surprise surprise).


Last week the navigation system stopped working on the BMW. Because we met the stipulations of the contract (warranty must be 30 days old AND must have 1,000 miles more from the time of purchase) we assumed we would have no problem bringing the car in for service.


A few hours ago we received a phone call from the service advisor at the dealership explaining that our claim was denied by the warranty company. After asking why would it be denied the service advisor was told by Alpha Warranty Services they FEEL that this was a pre-exisiting condition. In turn, the dealership explained that the BMW was there on 8/3/09, one day before the warranty was purchased and this was not a pre-existing condition. The dealership faxed over proof to Alpha Warranty Services clearly showing that it was not an issue at that date. 


After review Alpha contacted the service advisor and the claim was "reviewed and denied because we FEEL it was a pre-existing condition." I then contacted Alpha to inquire further about the denied claim, and the representatives response was that being that it occurred last week our logistics deem that you did not have 1,000 miles on the vehicle at that time. I then stated it most certainly did have the required mileage. They said that our mileage doesn't meet their logistics. I then replied that no where in the contract does it state there are logistics as to how many miles are required/expected to be put on the car in a certain time period. He then stated there is not a set number, I responded then how is it possible you are denying a claim that meets all of your contract requirements? I was also told that the claim has been closed. Without contacting the purchasers of the contract or any type of investigation the claim was closed. I asked him for a contact number or email for the claims department and I was told, it is an internal department so we don't have either.


I asked him what the next step is because we are going to fight this. He said we have to fill out the appeal packet and upon two weeks they will advise us of the decision. I asked him to email me the information. Once I received the email I carefully read the information, only to find out that we would only receive $300.00 if we are approved.
Keep in mind we purchased the platnium warranty. At this point we have decided we do not want to do business with this company and we requested a refund. They then stated that the refund will be pro-rated! Not only are they not fulfilling their end of the contract, they are also stealing money from hard working people! This company is a joke and has no intention to living up to their end of the bargin. We are demanding a full refund for the purchase of the warranty.

This report was posted on Ripoff Report on 10/16/2009 05:12 PM and is a permanent record located here: https://www.ripoffreport.com/reports/alpha-warranty-services-inc/draper-utah-/alpha-warranty-services-inc-vehicle-warranty-company-that-does-not-honor-signed-contract-510453. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

Better Business Bureau rating

AUTHOR: Frapster - ()

Despite your rating of A or better with the BBB, you have over 31 complaints of which people have experienced issues with the services you have rendered, or lack thereof, to them.

Realistically speaking, you have the right, and you are on solid ground with all the complaints and resolutions, relatively speaking.

Hiding behind the facts does not deter from the sad and final conclusion, you are ripoff artists.

Why?

1. Any repairs to be made must be made in order to correct a FAILED part. If another part fails, and causes something else to fail, too bad. That's BS for the simple fact that when one part fails, sometimes it causes others to fail as well. Aka, someone wants to take care of their vehicle and have leaking gaskets replaced and is denied by you, is stupid.

2. I was a potential consumer. No more, after reading all of the complaints you've received has done nothing but cement the idea in my mind that my money would be better served elsewhere. People buy your product for one reason, peace of mind, and sadly you are not providing it. Oh wait you say, there are happy customers? Sure, but having to constantly fight, bicker, complain and provide proof that that they are not a cheat, liar, or crook, you just prove that you are because you suspect everyone else of being one.

3. The fact that you do not serve the customers interests by providing a rental car for the entire term they are out of a vehicle is just another nail on the coffin of deceit you peddle. It doesn't make sense that you want a part to be shipped from another state, and now the repair time will take 4 days instead of just one, and thereby taking the time away from the customer with no recompense doesn't serve anyone but yourself.

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#2 Consumer Comment

Alpha Warranty Service don't cover Customer

AUTHOR: Moeana714 - ()

I bought the warranty to be on the safe side. You never know. I’m having car issues now, and due to a non-covered part damaging a covered part, they will not cover it. I’m driving to work on the freeway and a spark plug shot out of my engine. Knowing my warranty, I pulled over and had it towed, so I won’t void anything and go by the foot of letter of the warranty. Turns out when the spark plug shot out, it damaged the valve cover. Since they are denying my claim, they deny my towing and a rental that I need, since my car is at the shop, that now comes out of my pocket. They say sparkplug, I say defective threads in a valve cover that happened to several Mini Cooper owners. I saw it all over the mini cooper forums and they still say it’s not factory defect. F**K Alpha Warranty Service for taking the easy way out.

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#3 UPDATE Employee

Alpha Warranty Pays All Covered Claims 99.999% Satisfaction Rate

AUTHOR: Alpha Warranty Services, Inc - (United States of America)

I would like to take the time to address this customer's concern. I regret hearing that this customer has not had a good experience. We strive to ensure that every customer is provided with the best service possible. Unfortunately, the reality is that some claims are denied because they are not addressable under the coverage of the service contract. We do our best to ensure that customers have a chance to review the coverage and terms & conditions of coverage. We provide this information to them, include signature lines on every page (not required but we do so to encourage customers to read through the coverage), and even provide a 30 day period to review the service contract and cancel it for a full refund if they are not satisfied with their purchase.

The customer's contract clearly states that pre-existing conditions are not addressable under the service contract. In a recorded call, the customer clearly states that they began having the problem "when I got the truck." He clearly states that the problem started as he was driving the vehicle home after purchase. This statement falls within the definition of a pre-existing condition.  The service contract defines pre-existing as:  A condition and/or failure normally manifested through the gradual reduction in operating performance or whose condition may reasonably be assumed to have existed prior to the sale date/miles of this contract or prior to the expiration of the pre-existing period. This includes any part that was broken, worn beyond serviceable limits, or making noise at the time of purchase. Any component or system that was not functioning properly upon the first attempt to operate or upon first inspection is also considered pre-existing. All covered parts must be in good working order prior to sale for the Vehicle to qualify for this service contract. Failures or breakdowns resulting from pre-existing conditions are the responsibility of the service contract purchaser.

The service contract does not allow us to cover pre-existing conditions. We are more than willing to offer our services in locating less expensive parts through our network of nationwide part suppliers. The customer may contact us at any time to obtain this service.

If any of our customers have questions or concerns we encourage them to contact us directly so we can resolve these issues with them. We do offer an Appeals Process to address concerns like these that may need further review. The customer declined to take advantage of this review.

We also wish to point out that we maintain a satisfaction rate of 99.999%. This is an exact figure. In other words, we receive complaints from less than .001% of our thousands of customers. Were proud of this record and strive to continually improve it.
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#4 Consumer Comment

ALPHA WARRANTY WON'T PAY

AUTHOR: joe T - (United States of America)

I was reading this story and the first thought that came to me was "CLASS ACTION LAWSUIT"  I have recently experienced the same treatment as this woman.  I am sure there are others out there.  I purchased a vehicle at EXOTIC MOTORS in ROLLING HILLS, ILLINOIS two months ago-they sold me this WORTHLESS ALPHA WARRANTY for $5000.00 on a mercedes-benz G-500, and now ALPHA WARRANTY is giving me the same excuse to not pay-a "pre-existing" repair-it happened going over a pot-hole!
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#5 UPDATE Employee

Alpha Warranty Services, Inc Honors Contracts & Provides Great Coverage

AUTHOR: Alpha Warranty Services, Inc - (United States of America)




We recently became aware of this complaint and would like to address the issue.




When claims are denied by our Claims Department they are done so on the basis of the information received from the mechanic and customer of the claim in question, not on how we feel. In this case it appears that her mechanic stated that her claim had been denied by the Claims Department because we feel it was pre-existing. This is absolutely false and inaccurate.  




The reason the claim was denied was because the customer started having the problem with the navigation system within the pre-existing period. The pre-existing period applies to when the problem begins to occur rather than when the problem is reported to our Claims Department. Most of our service contracts do not carry a 30 day/1000 mile pre-existing period. This particular contract was purchased through an online broker. These 30 day/1000 mile pre-existing periods are set in place to prevent fraudulent situations of mechanical failures that existed prior to purchasing the vehicle.




We offered the customer a chance to go through a simple appeals process which she declined. For some reason she did not take advantage of our review process. The total amount that would have been approved on that claim was $300 because that contract has a limit of liability for the navigation system. Its important to note that each contract has different terms, conditions, and coverage. In this case the limit on the navigation system was $300. The $300 limit was clearly outlined in the contract and was not some random or arbitrary payout chosen. We offer contracts that extend coverage for the full MSRP cost of the navigation system and other parts but this customer chose a more limited coverage option.




As far as a $100 gas card that was offered, this offer does not come from our company. This offer is not made or offered by Alpha Warranty Services. The customer seems to be confusing us with another company. The selling broker may have offered this incentive. This issue would need to be addressed directly with the selling broker.




If any of our customers have questions or concerns we encourage them to contact us directly so we can resolve these issues with them. Unfortunately this was a case in which we attempted to provide a second review of the claim but the customer failed to follow through with the process.




Alpha Warranty Services maintains an A Rating with the Better Business Bureau and maintains the cleanest reputation in the vehicle service contract industry. A simple search of competitors in the industry will demonstrate that Alpha maintains the best image and lowest number of complaints due to our commitment to customer service and strong business values.

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