National Warranty Insurance Company RRG ripoff, Bankrupt, will not honor PAID IN FULL warranty. Lincoln Nebraska
I purcahsed this warranty, Smart Choice 2000, and up to now the co has been great. Now that I need major repairs, I find out the company is being liquidated... Bankrupt.
I called the claims department and was told "They didn't know they were going bankrupt." WHAT A CROCK! They were in business for 19 years, they have CPA's how could they NOT KNOW???
No notice was sent to me, and I was told that all customers will recive notice next week, and that a NEW co would be taking over as of Aug. 1, 2003. "Please hold your claims until then."
Hmmm... ok, I am a single mom, I have a serious chronic illness that lands me in the hospital every time I turn around (stress plays a BIG factor in this Illness too.) and I can't be without my car until after August 1. I was then told, "Well you can pay for the repairs and if its something covered AND you have PROOF that you have kept up the maintenance of the vehicle, the warranty Co. will pay you back." OK... "Tell you what lady, how about you pay the bill, because I bought a WARRANTY so I wouldn't have HUGE repair bills, I CAN'T pay for this."
I was then told, "I know how you feel... its just terrible, your situation is so sad." Lady you don't even know how sad things are around here and now its going to get even worse.
I have contacted the Michigan Bar association via their website... I still haven't heard back from them as to how I can get help in filing suit against this co. $3000 for a warranty that is now no good?? That could pay off the bills that I have been struggling with just so I could keep their payments up.
They sure did keep taking the cash out of my checking account every month... and now I have nothing to show for it, except for a new co coming in that will probably NOT fulfill any promises either.
If you have this warranty, I would reccomend calling claims just to find out if you have coverage too, I got stuuck in the middle of no where with my car, and now it sits in a little hodunk town at a very nice mans service station... Robbins Auto Value in Union City, MI.
If you are ever there and need work done on your car, thats the place to go. The owner heard my story and even offered to run the diagnostics for FREE. I can't think of anyone around here (Battle Creek, MI) that would do that. Thanks John!
Denise
Battle Creek, Michigan
U.S.A.
5 Updates & Rebuttals
Jim
Oregon,Ohio,
U.S.A.
Warranty Gold should be Out of Business
#6Consumer Comment
Wed, October 29, 2003
I read the comments on NWIG and Warranty Gold. I bought my policy thru Warranty Gold. They made the promises. They also never mentioned about NWIG being from the Cayman Islands. I have been corresponding with them about how they are back in business with a new "administrator" and how can they do such a thing? They have given excuses about NWIG or have been non-responsive. I have $1000 in repairs that I paid for and have been given the same responses from NWIG (about my claims) as other people. At this point, I will be happy to help divert ANY future customers away from Warranty Gold as long as they continue to sell new policies and not honor old ones. If this isn't a RIP-OFF I don't know what is.
Ken
Memphis,Tennessee,
U.S.A.
I put a stop on all payments
#6Consumer Comment
Wed, August 27, 2003
I purchased an extended warranty contract from Warranty Gold on May 9th 2003. I have been paying for this warranty monthly. Warranty Gold debited my MasterCard every month on the 23rd in the amount of $130. My initial payment was $419 back on May 9th2003. I just happen to call and inquire about my contract and that?s when I found out about the problems. I put a stop on all payments at the beginning of August. After June, this company started selling new warranties with a new administrator. Customer service stated that the future of our contracts depended on how much of the funds are recovered, if any, from the administrator that is being liquidated. Although I have only had this plan only 3 months and only 1,500 miles have passed, Warranty Gold stated that they could only reimburse $92 out of roughly $675 that has been paid. That is with no claims filed under this contract!
This company should have notified their customers about their situation as soon as it came to light. Instead, the excuse that they gave was ?Well, we did not want all of our customers calling, tying up our phone lines.
It looks like my contract was with WG. This should make them liable when the administrator can?t pay??
John
Davie,Florida,
U.S.A.
This also affects WARRANTY GOLD
#6Consumer Comment
Tue, August 26, 2003
I bought an extended warranty from Warranty Gold in Feb.2003. And it turns out that this company, NWIG, was also the admininstrator of my plan. In June, I found out, through edmunds.com, that NWIG was insolvent and various proceedings were taking place. I contacted Warranty Gold and they let me skip my June payment. But when it came time for my July payment and this was still not resolved, and Warranty Gold would not let me skip another payment, I cancelled my plan. So I was out $849, but at least I held back from paying them the remaining $1050. I have complained to the Texas Attorney General, (Warranty Gold's home state), to seek reimbursement for what I did pay. For anyone who has not paid all of their contract with Warranty Gold, I strongly recommend not sending another dime, and try to get a refund.
Tim
LINCOLN,Nebraska,
U.S.A.
look at the big picture or at least from my side of the fence
#6UPDATE Employee
Tue, August 26, 2003
I have been an employee of NWIG for 2 1/2 years. I do honestly understand the problems that you are having.
However, I want you to think about this for a minute we may have something in common. You are a single parent with health issues (stress makes you have these issues more often). You bought a service contract to help with spendy repair bills. You paid $3000 for a service contract (sounds like the dealer ripped you off to me).
Now here is my story after being with a company for 2 1/2 years One day we are all told that we can no longer authorize claims to be paid out, because the largest part of our buisness is no longer funding accounts for any buisness to be processed out off. Now the calls start coming in and all that we can do is explain what is going on. Now the customers are irate yelling screaming and carrying on over something that nothing could be done about. Once in Joint Provisional Liquidation no claims could be authorized or paid out. Transfers and cancelations could not be run. Does this sound familiar? Sounds like a whole lot of stress to me. Finaly August 1 comes around and the job you have been doing will most likely not be there much longer, but you dont know how much longer. Insert wife that does not work and 2 kids ages 4 and 1. Hard to support a family with no income? Finaly Official Liquidators give us notice on August 13 that there will be alot of people being laid off with no possibility for recall on Oct 10. Ok so in about 48 days I will be unemployed along with all but about 20 people that will be doing financial reconciliation for a short amount of time.
Bottom line is you are out $3000 for a service contract meanwhile 60 people are out of a job. Not to mention the employees that will be out of a job and a service contract.
I know this doesnt make things any easier for you or your family. But before you go bashing on the employees or the company that they are employeed by. Take a step back and look at the big picture.
On another note I know that NWIG is no longer giving out authorization numbers or evern making promises that people will be reimbursed. However when the issuing dealer of the service contract decided to start selling Smart Choice contracts they also had to sign a dealer agreement which makes them the obligor to the contracts financial abilities should something happen to NWIG. Check with your issuing dealer (assuming you havent) hopefully they can do something to help you out.
This was strictly my belifs and opinions and not those of NWIG
Jake
Indianapolis,Indiana,
U.S.A.
They are doing nothing illegal
#6Consumer Comment
Wed, August 06, 2003
Unfortunately, in this present economic situation, many companies are going bankrupt. Companies are not legally obligated to provide services after they are no longer in business, just like individuals who declare bankruptcy are not obligated to pay their creditors.
The company is not required by law to advise you of their financial situation, although if the company is publically owned you can easily access that information yourself.
The only way this company would be guilty of the "rip-off" you accuse them of is if they were bankrupt at the time they aquired you as a customer. I never cease to be amazed at how many people accuse companies of "ripping them off" when the consumer has no clue as to the legalities of their accusations. I sympathize with your need for healthcare, and from what you say it sounds like this company had every intention of always providing you with this. There is no way to recover your investment from a bankrupt company, and you are hurting noone by saying as much as you like about a company that is NO LONGER IN BUSINESS!!! Get a clue.