Lynn
Winston-Salem,#2REBUTTAL Owner of company
Thu, May 06, 2004
As happens most often regarding a claim denial, by not only ours but every warranty or service contract company, the entire story and series of events surrounding the denial is not presented by the claimant. Please review our side of this story and realize that our decision was a fair and equitable one and that we are not in the restoration, reconditioning or betterment business. As appears in life and health insurance polices, warranty and service contracts do not cover pre-existing conditions -- this would be akin to "Russian Roulette" for our business. We are here to cover unforeseen catastrophic failure not to cover up for mistakes by manufacturers, dealers, repair shops or customers and certainly not to assist the unscrupuloas among the aforementioned. Please take a moment and read the evaluation by our Claims Manager to be aware of "The Rest of the Story". First of all, I would like to point out we are not in the refurbishing business. We offer warranties on vehicles which qualify for coverage, and yes, one of the qualifications for coverage is that the vehicle not have any existing concerns at time of purchase. Mr. Nemeth's car was sold to him under the pretense that the vehicle recently had a"new" transmission installed. The dealer went on to say he could not come down on the price for this reason. He also stated a receipt for this work was not available for Mr. Nemeth's records. Most of us can clearly see what is happening here. The dealer then closes the deal by diverting the buyer's attention away from the pressing issue offering an extended warranty adn the peace of mind that should be associated with such a purchase. Somehow his efforts work and Mr. Nemeth buys the truck purely on the dealer's word the transmission had been replaced. Five months down the road the "new" transmission is finally taken in to address the ongoing problems with it sticking in park and in drive. These symptoms were diagnosed after tear down as being the result of an imporperly installed shift cable. Not a component covered under the warranty, however, metal shavings are noticed in the burnt transmission fluid present. An internal torque failure is reported as the cause. This was not why the vehicle was taken in for repair. The condition of the remaining internal components evidence heat and discoloration due to operation of the vehicle after the above-mentioned failure. The inspection report goes on to state the condition is consistent with an improper repair which resulted in the loss of internal fulid apply pressure. The inspection report which is referenced does not come from our company. We hire an independent third party inspector to investigate the cause of failure and extent of damage on all claims. Mr. Nemeth now seems to be aware of why the transmission replacement receipt was not available to him. It never was replaced. It was simply repaired enought to get Mr. Nemeth far enough down the road where the dealer could play "the good guy" in a claim situation. The dealer's repair facility put a large enough Band-Aid on the transmission problem to get him out the door. Five months later this incomplete replacement came to light. Coverage can not be awarded where failure is the direct result of an improper installation which exists at time of purchase. This is an industry standard. Of course the dealer tried to assist with monetary help and advise after the claim was denied. He was after all responsible. Mr. Nemeth was given instruction to seek recourse through the dealership by the Premium 2000 Plus Claims Department. Please find this response to be a brief explanation of how our claims decision was correctly made. Dealer misrepresentation allowed the customer to purchase a vehicle that was never going to operate as the manufacturer intended due to faulty installation. Premium 2000 Plus has awarded over 4 million dollars in legitimate claims at an average of $1,600 per claim. Do not let the unjust displeasure of few negate the thousands of satisfied customers.