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Report: #1086098

Complaint Review: Alpha Warranty Services - Riverton Utah

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  • Reported By: Brandon B. — Houston Texas
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  • Alpha Warranty Services Riverton, Utah USA

Alpha Warranty Services Alpha Warranty is Good at Claiming Pre-Existing Conditions on Used Vehicles Riverton Utah

*UPDATE Employee: Paid Claim of $449.02—Customer Purchased Vehicle With Known Issue

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I paid $1,979. for a useless, yes useless, Alpha Warranty Services A La Car warranty when I purchased my '07 Ford F250 Super Cab truck from R&T Expo here in Houston, Texas. I paid extra for the 5 year or 100k Alpha Warranty. This diesel truck had slightly over 100k miles on it. When my 6 year old truck's alternator failed 3 days into ownership of my truck the warranty covered it. When I noticed the first hint of white smoke on start up the next day, I took my truck to a reputable automotive shop. I did this because the conditions of the warranty state this should be done to prevent catastrophic failure. They diagnosed that my EGR cooler, oil cooler and turbo were not working properly. I knew upfront the warranty would not cover the EGR cooler and oil cooler. This out-of-pocket expense would cost me $1,843. I understood this--not a problem for me and my family. On the other hand I really believed the great warranty I thought I bought would cover the turbo work. Alpha Warranty Services sent an inspector to take a look at my truck and he readily identified the problem as a "pre-existing" condition. I bought the truck less than 14 days earlier and when I asked the dealer if there were any problems with the truck he acknowledged problems with the EGR valve and nothing else. I'd like to note that an Alpha Warranty agent had been working with this dealer and readily sold and accepted a warranty on my truck. Just that month he sold 4 other policies. Replacement for my turbo is going to cost me an additional $2,326.30. I really believed my warranty would cover this expense. Why are they selling warranties on used vehicles, only to claim pre-existing conditions? Don't all used vehicles have pre-existing conditions simply by the nature that they are not new, off-the-showroom vehicles? Steve, (Steve Rosenvall, Alpha Warranty Services' CEO) I quickly realized that the warranty isn't worth the paper it's written on. Furthermore, when I requested to cancel my $1,979. warranty that I paid Alpha IN FULL, I was told by their representative the reimbursement check would be sent to the dealer and not me. Also, the alternator work that was supposedly covered will be deducted from this amount. And, they charged an additional $90 for the rep they sent out to inspect the truck just to tell me my vehicle’s problem was pre-existing.  Now that the repair amount for my truck is $4,482.83 plus the $443.82 alternator work for a grand total of $4,926.65, Alpha Warranty Services no longer wanted the risk or responsibility. Alpha's 30-day appeal process ensures vehicles are not repaired and forces the customer to pay out-of-pocket. Lastly Steve, why don't you post some REAL LIFE stories like mine on your website to relate how your customers are really treated? I sent a similar version of this narrative to Steve Rosenvall and Jeremy Lindsey the COO and did not receive a reply. That should tell you alot about this company. Run away!!!!! Buyer beware.  I am reporting them to the Utah Better Business Bureau and any other agency I can find that regulates these type of businesses.

This report was posted on Ripoff Report on 09/20/2013 01:13 PM and is a permanent record located here: https://www.ripoffreport.com/reports/alpha-warranty-services/riverton-utah/alpha-warranty-services-alpha-warranty-is-good-at-claiming-pre-existing-conditions-on-use-1086098. 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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REBUTTALS & REPLIES:
0Author
1Consumer
0Employee/Owner

#1 UPDATE Employee

Paid Claim of $449.02—Customer Purchased Vehicle With Known Issue

AUTHOR: Alpha Warranty Services, Inc - ()

POSTED: Friday, March 21, 2014

We would like to address this customer’s concern. This customer did file two claims with our company, one of which was approved, the other denied. Both of these problems occurred within three weeks of the date of sale. The alternator failed on August 13th and was covered and paid for in the amount of $449.02. We are glad that he was able to have coverage provided so quickly after the purchase of the vehicle. It was determined that the electrical failure of the alternator was catastrophic and was not a pre-existing condition.

Unfortunately for the customer, the failure of the turbo was caused by a long term failure of the turbo bearings. This was verified by a third party inspector and our ASE master technicians. In fact, this customer purchased a vehicle with a known problem as he mentions above.

It’s absolutely true that every used vehicle has some wear on it, hence the term “used car”. The service contract does not exclude coverage from components that already have wear but specifically excludes components that already have wear or damage to the extent that repair or replacement was necessary already at the time of the service contract sale.

The third party inspectors and our claims adjusters do NOT adjudicate claims based on whether or not wear existed at the time of sale. It almost always will exist. They adjudicate claims based on whether or not the wear or damage was already beyond the manufacturer tolerances at the time of sale. In this case, the third party inspector and our ASE master technicians verified that based on the cause and extent of damage, replacement of the turbo was already necessary at the time of the service contract purchase. As a reminder, the vehicle and service contract had been purchased only three weeks earlier.

We regret his frustration but wish to point out that these complaints filed online amount to less than .001% of all service contracts that we provide. We have an A+ rating with the BBB and have been chosen as a top service contract provider by several companies.

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