American Protection Corp. Royal Administration Services, Inc. Attempted Ripoff Via "Extended Warranty" Scam Coral Springs Florida
American Protection Corp. made an illegal call to me (I'm on the National Do Not Call Register) and attempted to rip me off by trying to sell me a virtually worthless "extended warranty" for my eleven year old vehicle for $3,230. The American Protection Corp. agent, Jason Moss, told me that American Protection is the company that is responsible for the manufacturer's warranty and this would be an extension of it with exactly the same coverage and conditions which is an absolute lie. I asked him to e-mail the proposed contract. He said he will only send it to me if I make a down payment of $495. After much rudeness and excuses on his part, he finally agreed to e-mail a copy to me.
After I read it, I understood why he didn't want me to read it before paying for it. Everything he told me was a lie. Instead of being an "extended warranty," the contract was a vey limited service contract. It contains numerous specific exclusions of a wide variety of components that are covered by the manufacturer's warranty but are not covered by this service contract. Worse, the contract contained clauses that would allow it to deny nearly any claim for repairs such as pre-exising conditions. People usually think that would only be for something that was broken before the contract was in effect. But the clause is so broad that it allows them to deny reimbursement of repairs by saying there must of been some design defect or wear if the part failed. This makes the contract virtually worthless. You'd only find that out when they denied your claim. Making matter even worse, the contract specifies that any dispute about claims be decided by an arbitrator they select and pay. That means you give up your rights to have any grievance settled in court and use their hired arbitrator.
The company listed in the contract as the administrator is Royal Administrativd Services, Inc., Hanover, MA. Customer service reviews on file with the BBB indicate that 92% of customer gave the company a negative review. This percentage is much more important than the BBB's rating since the BBB is mainly only concered that the company responded to the complaint. Don't be fooled by high rating given to companies by the BBB.
I would have been out $3,230 if i had fallen for the lies and misrepresentations of American Protection Corp. and bought their virtually worthless contract. Worse, I may not have known that the contract was worthless until I had a breakdown and had my claim denied. The company promises that they will return your money if you cancel within 30 days. However, all of these "extended warranty" scammers are notorious for not providing the promised refunds. If you ever make the mistake of making a down payment for one of these worthless extended warranties, be sure to cancel it within 30 in writing via certified mail so you can prove you did it timely. Then file a dispute with your credit or debit card company.
1 Updates & Rebuttals
Todd
Florida,USA
American Protection Corp A+ Rating
#2UPDATE Employee
Thu, May 28, 2015
American Protection is a direct seller of vehicle service contracts with an A+ rating with the BBB. We fully stand behind all coverage plans we offer, and we back them up with a 30-day review period and a 100% money-back guarantee with no questions asked. The statements made below are completely untrue; we have investigated all statements below and have listened to all communications. Here are our findings: American Protection gladly provides a copy of all terms and conditions for review upfront without the need to purchase any of our products. In addition, we encourage all our customers to shop around with a 30-day review period and no questions asked refund policy as we are confident that our superior lineup of A+ products, great reputation and our lowest rate guarantee will encourage consumers to entrust us with their vehicle service contracts as we have done successfully for thousands of customers for the past 8 years. American Protection is fully compliant with all state and federal Do Not Call regulations and we only market to consumers that have OPTED-IN to receive information about our products and services. Based on the complaint, we have requested an investigation by the marketing company that provided that sales-lead and have requested time/date stamp and ip address of the opt-in request. Due to obvious privacy concerns, we can’t post the associated time stamp on this site; however, it is available upon request. Furthermore, this is clearly a case of mistaken identity as the Royal plans we represent carry an A+ rating, and is an accredited BBB business since 2002 with tens of millions of dollars paid out in claims over the years. Royal has a rating of 4.4 out of 5 stars based on 27 reviews with the BBB. Therefore, the statements below lead us to believe the complaint is referring to a different company with a similar name as there may be a few companies with a similar name. It is clear that the statements made in the complaint are not in line with the actual company we represent. Due to the high number of pre-existing claim attempts made each year, all vehicle service contracts will have the legal language designed to protect the underwriters of the policy in case a claim is attempted for a pre-existing condition. That is standard language used in all contracts. The Royal Plan that we offered does deny preexisting conditions as do all other vehicle service contracts. Most complaints occur because someone KNOWINGLY takes out the coverage when something is already wrong with the vehicle. We clearly let our prospective customers know that pre-existing conditions are never covered prior to buying. We clearly tell them that if something is wrong with the car now, it will not be covered. It is also stated in their contract and backed by their 30-day money back guarantee. Unfortunately, there are always a few bad apples that create these issues. The fact that anyone would call the coverage worthless WITHOUT buying it or even attempting to file a claim is a complete sham and is unfair to those of us that work hard to make sure our customers are 100% satisfied with our products. .In addition,. It’s a shame that the un-validated complaint does a huge disservice to anyone considering buying coverage and using a reputable company.