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Report: #760328

Complaint Review: Alpha Warranty - Internet

  • Submitted: Wed, August 03, 2011
  • Updated: Fri, February 24, 2012
  • Reported By: KJ — Owings Mills Maryland United States of America
  • Alpha Warranty

    Internet
    United States of America

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I bought an extended warranty from Carchex who sells for Alpha Warranty. Two months later after buying the warranty I needed a new transmission. I took it to the best transmission mechanic, Whitcraft, to give me an estimate and then later service it. Alpha Warranty would not approve the claim unless I proved that my transmission had been flushed. Keep in mind, some mechanics NEVER recommend that you flush the transmission but I had proof that I had done so. 1 week later I still had no word back from Alpha Warranty. I had to rent a car to get to work. They claim I still had not sent my documentation in for approval. I told Whitcraft to start on my car and keep all the old parts and document any work done because I needed my car. Finally, after 2 weeks, I had to re-fax the documents and a claims adjuster went to the site. My mechanic showed all the work and old parts to prove that I needed a new transmission. My claim was denied for $1820 because the work was done. When complaining about it, I was told that "They weren't the ones that sold me the warranty and I should not have had any work done. We are NOT going to pay for the work done." I was LIVID and asked for anyone and everyone I could escalate this to. I was told by Jillaye that she was a supervisor and I couldn't speak to anyone else. She reported to the CEO and that was final but if I wanted to appeal it then that would be it. 

Alpha Warranty is a RIP-OFF, like any other insurace company they do NOT want to pay a claim. They use all the fine print to avoid a legimate claim. I plan to comment on each and every website, blog and social network until I get results. $1820 may NOT be worth the aggrevation but now it's the principle!

If you buy an extended warranty DO NOT use Alpha Warranty service. You will not get you claim taken care of. They use the old " It's clearly states in your contract BS!"

This report was posted on Ripoff Report on 08/03/2011 12:04 PM and is a permanent record located here: https://www.ripoffreport.com/reports/alpha-warranty/internet/alpha-warranty-we-didnt-sell-you-the-contract-internet-internet-760328. 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
8Consumer
0Employee/Owner

#1 UPDATE Employee

Repeat Complaint, 99.999% Satisfaction Rate

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

Please understand that 4 of the complaints about our organization are from this same customer (joe T). We strongly refute this customers statement. These statements are unfounded and unwarranted.

If you wish to review the complaint filed by this customer, you can do so at http://www.ripoffreport.com/auto-warranty/alpha-warranty/alpha-warranty-alpha-warranty-3f0d6.htm.

We encourage you to read through his complaint and our response and make a decision for yourself regarding the circumstances of his claim.

He mentions he is going to file a class-action lawsuit. Its important to keep complaints in perspective. We have a 99.999% satisfaction rate. That percentage is an exact figure! Of thousands of customers we service every year, we have a total of 10 complaints on this website. Thats right 10 complaints. And in fact, 4 of these complaints are from the same customer (joe T). We do regret this customers frustration but encourage people to review the entire facts for themselves and make an informed decision.  Please keep complaints in perspective.

Alpha Warranty Services maintains an A+ Rating with the Better Business Bureau. Our customers and their feedback are very important to us.
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#2 UPDATE Employee

Educated Consumer, We Hope You Enjoy Our Service

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

In response to Ryan from Chicago, he is absolutely correct that there are many quality administrators in our industry. We are proud to include ourselves as one of those quality administrators. It is apparent that he is well informed about purchasing a protection plan. We encourage all customers to be as thorough as Ryan has been and were confident that they will come to the same conclusion that Ryan has... that they are an honest administrator.
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#3 UPDATE Employee

Not Incentivized to Deny Claims

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

Claims adjusters are not encouraged or incentivized to deny claims. In fact, it is just the opposite. If they are found to be denying claims that should be covered, it would cause problems for the company and their customers. All adjusters are trained to process claims efficiently and accurately and follow the terms and conditions of the plans offered.
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#4 UPDATE Employee

99.999% Satisfaction Rate, Keep Complaints in Perspective

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

Im very disappointed to see a negative experience reported about Alpha Warranty Services on this site. Our reputation is very important to us. In fact, our company promise is to offer fast, reliable service of superior quality, delivering this service with integrity. If we haven't delivered on this promise, we want to know about it so we can remedy the situation. Please contact us at concerns at alphawarranty.com.

I would first like to address the original complaint above. One of the most important terms of any vehicle protection plan is to not perform repairs without prior authorization. This would be like getting in a car accident, repairing your bumper, headlights and hood and then calling your auto insurance company expecting them to pay for your repair. Prior authorization is a standard in this industry as well as auto insurance and health insurance (some procedures like surgery).

The customer also mentions that we use the old It's clearly states in your contract" Im confused about what point the customer is trying to make. Shouldnt we refer to the contract when determining coverage?

Alpha Warranty Services maintains an A+ Rating with the Better Business Bureau. Our customers and their feedback are very important to us.
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#5 Consumer Comment

ALPHA WARRANTY-CLASS ACTION LAWSUIT

AUTHOR: joe T - (United States of America)

I spoke to the same Jole or Joy or Jolie or whoever- who claims she is right under the CEO of ALPHA WARRANTY.  I too was livid and she told me that she " feels" the repairs needed to my Mercedes-Benz G-500 were "pre-existing".   I asked her if she was qualified as a mechanical engineer to make that claim.  Anyone out there who has been ripped off by ALPHA WARRANTY PLEASE CONTACT ME-I am hiring a law firm and filing a class-action lawsuit against this company!  ALPHA WARRANTY HAS AWOKEN A SLEEPING GIANT!!!!!
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#6 Consumer Comment

Some administrators DO honor contracts

AUTHOR: Ryan - (U.S.A.)

I agree that this industry has a bad name, especially after the fall of U.S. Fidelis, who were complete scammers.  I would like to see Darain and Cory Atkinson go to jail for a LONG TIME.

I now have a vehicle service contract (VSC) from Alpha, which I have recently purchased.  I have not had any repair issues to try to use it yet.

Previously, I had two other VSCs from another administrator (same for both VSCs), who I will not mention here, as I do not want anyone to think I am promoting them.

My first VSC was purchased at 48k miles and covered me until 100k.  Cost was $1,300.  Total paid at the end of the contract was approximately $4,500.  My last repair was around 99,200 miles (the only time they sent out an adjuster - I thought it was going to get denied, but it was approved).  The last repair was around $1500.

My second VSC was purchased at 99k miles and covered me for an additional 60k (or 48 months, whichever comes first).  Cost of the contract was $2325.  Total paid repairs at the end of the contract was just over $5,000.  They did deny one claim a couple of years back due to rust on the part that caused the damage, so I ended up paying that myself.  I was mad at the time, but understood it was in the contract.

My third VSC is now with Alpha Warranty Services.  It was a judgement call for me to get this VSC.  One never knows how the administrator is going to handle things.  It has less coverage that my previous contracts, but I also have a lot more miles on my vehicle.  When I checked out Alpha, read the contract, researched their insurnace backer, searched the internet on them, etc - everything about Alpha seemed to look great and that they are an honest administrator.

The point of my posting is that some 3rd party "auto warranty" companies are good and they do honor the contract.  I put "auto warranty" in quotes as it is commonly called a "warranty", but is really a "vehicle service contract" that is backed (hopefully) an insurance policy.

When searching for a VSC, my opinion is to NEVER purchase one that is backed by a Risk Retention Group (RRG), which is a form of a pseudo insurance company.  They are usually not solvent and have a huge reputation in denying claims.  My VSC is backed by Cardif Insurance, which is NOT a RRG.

Also, make sure you understand the total aggregate payout on the contract, along with any individual caps for each (Engine $xxx coverage, Transmission $xxx coverage, Air Conditioning $xxx, etc).  Compare this to the cost of the VSC.  If you have a car that is worth $6,000 retail, the total claims cap is the trade in value of the car AND someone wants to sell you the contract for $2,500 - it would not be worth it.  Put the $2500 in the bank as a back up for when you do need a repair done.  Over time, the value of your vehicle will go down and so will the cap on potential claims.

I am sorry to hear of your experience with the claim being denied.  I cannot comment due to not knowing all of the details.  I hope Alpha was justified in denying the claim.  If they were not and they denied it anyway...then this is not right.  It would be great for Alpha to respond and give their side of the story.  I, for one, want to make sure that I am dealing with an administrator that will honor the terms of the contract. 


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#7 Consumer Comment

Shady industry.

AUTHOR: Flynrider - (USA)

"If you buy an extended warranty DO NOT use Alpha Warranty service."

   Better idea : DO NOT buy third party extended  warranties.  It's a shady business.   Basically, they convince you that even though you own a piece of junk that is falling apart, everything will be fixed good as new as long as you fork over a few thousand for the magic warranty.    That definitely falls into the "too good to be true" category.    If it really worked like that, they'd be out of business in no time.

   Use the "advanced search" feature on this site and wade through the "auto warranties" section.  You'll find that the complaints are all remarkably similar, no matter what company they're against.

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#8 Consumer Comment

Involve government agencies and sue

AUTHOR: voiceofreason - (United States of America)

Most such companies will deny all claims figuring most people will just go away. Don't be most people. Call their executive corporate offices and see if you can't talk reason with someone actually in the CEOs office. If not, contact whatever state or local agencies oversee insurance companies, or handle consumer affairs. And sue them in small claims. 90% chance you'd win there. And the adjuster still gets to say to his boss, "Hey, I did my job. I denied the claim. Your lawyers lost the case!"
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