Complaint Review: Diamond Warranty Corp.

I purchased a 2004 Dodge Stratus from the Rolerena Auto Sales in East PalestineOhio on 6/12/2008 with a 36 month/40,000 mile complete vehicle warranty from the Diamond Warranty Corp. On 5/17/2010 the car engine failed and the car was towed to an approved auto repair shop (Bender's Auto Service in Beaver Falls, PA). The warranty company has denied my claim to have the engine repaired or replaced even though I completely fulfilled my contractual obligation to properly maintain/service the vehicle. I have receipts to prove that the oil and filter were changed well before the required mile limits. The Diamond Warranty Corp. has stated that they are denying the claim because the auto repair facility said that there was sludge found in the engine when they inspected it to determine the cause of the failure. They said because of this, the engine or its parts were no longer covered under the warranty. This reason for denying my claim is not listed anywhere in the contract or its exclusions. Even if there was sludge found in the engine, it was not because of my neglect. Both the dealership and the repair facility agree with me that this should be a covered claim, but the warranty company has denied all of our requests to get this claim approved.

I have lost the use of this car for more than 3 weeks. This vehicle is much needed, so I decided to have the repairs made at my expense. The cost for replacement parts and labor wass more than $1500.00!