Complaint Review: Dan Nelson Finance - National Warranty Insurance Company - Sioux Falls South Dakota

My daughter and son-in-law bought an 'extended warranty' called 'Smart Choice' from their car dealership that is also a worthless product of National Warranty Insurance Company in Nebraska. We have contacted the California Insurance Commission and was told dealers selling these products in CA are breaking the law according to the CA Insurance Code 116.d. Not sure what is being done by the different states but hope it will be resolved. We hope everyone who purchased this stuff is willing to do something about it. More so because I have read the comments of ex-employees here on this website.

I am not Don Emery as I have only used his name in this postimg as I know that he is the owner of National Warranty. But i am an ex-employee that was laid off on October 10, 2003. I was a loyal employee of over 2 years and have seen many things and disruputable dealings while employeed. I am usiang an alias so I will not be found and ultimatly persecuted for what I might say here. I know for a fact that Don Emery purchased a new home in California in October of 2001. THis was very well know in the company and i have personally heard sories told to me by him of the details of the house. i might add that it must be nice if it is true. Not bad for a guy who is loosing his company in just a few months. I also know but this was never verified that funds were regularrly moved from account to account, a sort of borrow from peter to pay paul dealings. THis was done to cover mismanaged funds for many years. One of my best friends in the company was brought on as an accountant ad he showed me records of several millions of dollors being shuffled around within the company as far back as 1999. When I was last employed as a claims adjuster as were many of us. We were asked to balanced credit cards with the claims called in by dealers. My personla credit card that we used to pay claims with was over 30,000 dollars off. After 3 months of reconcilliation I was still 25,000 off. No record of actually where the money went. I do know for a fact that many many dealers were not allowed to call in claims as we would regularly send out inspectors to verify claims and routinely find that the repais were not needed. Sometimes that car was not even in the shop and the customer did not even know that a repair was being called in on their car. THis caused many claims to be paid to unscrupulous dealers on the east coast. Baron Auto Mall was a large one I remember. But many more were in Chicago, Texas and California. Nevada had a few when they found out how to scam us but that was only towards the end. Most of the trouble was laid down on the adjusts as we were paying too much or we werent asking for specs. But all of us are or were trianed auto techs and knew what a bad part was but the amount of tollerance. Many of us were master techs before coming to National. But we were made the scape goat of alot of underhanded dealings within the management of National Warranty. Many of the upper Management got out before it got to heavy but alot of us had to wait to be forced out. Now those same adjusters are working for Herritage Warranty and they are taking over the Smart Choice warranties. It will only be a matter of time until Herriatage is down too. I would like to close by saying that the adjusters were only doing what we were told to do. When they said "fight the claim", we fought it, sometimes even demanding that the bad part be shipped to us for verification. And when they told us to "just buy it", we bought it. What ever they wanted no questions asked. Many times I remember buying brand new engines for cars that had no verifiable proof of maintenance and over 80k miles, and other time fighting a wheel bearing on a 30k mile 4x4 truck for normal wear and tear. There are many issues still and many more to be uncovered but National Warranty failed due to mismanagment of funds and impropper accounting techniques. If an intellegent accountant were retained it is this authors opinion that National Warranty would have been insolvent as far back at 1997. Thank you for reading

I have spoken to the General Manager by the name of Terry at Dan Nelson several times. To my suprise, he was very willing to help us with our problem. He enabled us to get into a differant vehicle even though we were heavily upside down in the other with the tranny problem. He enabled us to get out of continuing to pay for the warranty (that was no good) over three more years and got into a newer and nicer van for about the same monthy rate we were paying. Although it's not a great deal, we are much better off than we were and did not have to pay to get the trans fixed on the van. My advice to all is use everything in your power to right the wrong and you might get lucky and get the attention of the right person to help resolve your issue. Thanks to ripoff reports to allow us the tools to to bring matters like this to a public forum. As the story above indicates, it also allows us to re-establish relationships that are broken. I was one of the few lucky ones. Hope all of you out there get that chance.

This company, NWIG, also is the Administrator for a third party warranty company called WARRANTY GOLD, and all their customers, prior to June 6, 2003, are in the same boat. I suggest you search here for Warranty Gold and also visit Edminds.com, go to their Town Hall (forums) and look for the thread on Warranty Gold Claims in the Financing/Warranties Forum. Here you will find other info on how to go about trying to get a refund. Good luck, from another NWIG, (Warranty Gold), victim.