Report: #202345

Complaint Review: Warrantech Automotive - Bedford Texas

3 Updates & Rebuttals

Reported By:

- Oceanside, California,

Submitted:

Updated:

Author Confirmed

Why?

Warrantech Automotive

2200 HWY 121 STE 100 Bedford, 76095 Texas, U.S.A.

Phone:

800-445-4606

Web:

N/A

Categories:

Auto Warranty

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Warrantech Automotive Extended Auto-Warranty-Ripoff - they deliver defective replacement engines instead enabling a real repair Bedford Texas

*UPDATE Employee: The Facts

*REBUTTAL Individual responds: Regarding the "Facts" from Lee at Warrantech

*UPDATE Employee: On The Contrary

In Sept 2005 I bought a 2002 C320 Wagon on ebay from

***(((ROR REDACTED FOR SECURITY PURPOSES)))

In the process Squaretrade offered me an Extended Warranty plan ("Gold

Coverage Vehicle Service Contract"), which I bought for $2496.96.

Warrantech is the actual insurance behind this extended warranty

contract. Squaretrade apparently just acts as a broker of sorts

selling these contracts.

The vehicle arrived here with 32000 miles on the odometer and I drove

it for just 9000 miles, because it burned more and more oil.

At 41000 miles an oil consumption test at a local Mercedes-Benz

Service Center concluded that the car burns 1 quart of engine oil per

570miles.

So I dropped of my vehicle at Mercedes-Benz of Laguna-Niguel to have

it fixed and asked them contact Warrantech for warranty coverage.

That was 9 weeks ago.

Warrantech sent out an inspector as the diagnose work progressed,

Mercedes-Benz wrote 3 different estimates for the repair, $8.5k for an

engine rebuilt, $13k for a remanufactured engine, $21k for a factory

new replacement engine.

Warrantech said they would not cover these amounts, though the

Warranty clearly and above all covers the engine.

Warrantechs "Senior Adjuster" Bill Belchar from Fort Worth, TX

handles this case and claimed that they, Warrantech, can supply a

cheaper replacement engine and thus have the repairs done for

about $6.5k. Accordingly thats the maximum amount they cover.

So watch out here:

Squaretrade Reps will tell you that your car under "their" (or better

Warrantechs) extended warranty will be repaired with NEW OEM parts,

while in fact they only cover repairs performed with salvage parts

they gather from some liveries and car recycling operations.

Nonetheless, I accepted Warrantechs offer and they have ever since

delivered TWO replacement engines (Mercedes Benz M112), which both

were found to be defective by the MB Service Center:

1.) The first engine arrived without a cable tree and without an

intake manifold. It was completed by MB, put in the car, ran at idle

for just two minutes, made clacking sounds and died.

Diagnose: no compression on 2 cylinders, wobbly crankshaft.

Damage beyond repair.

2.) The second engine arrived more complete from Warrantechs engine

supplier but had front-end damage. MB techs had to remove the engine

front covers (covering the timing chains) and found

a.) a damaged keyway on the driveshaft, so the crank dampener would

not fit on

b.) a damaged head gasket that would have resulted in a sizeable oil

leak.

MB has provided damage documentation

Bottom line:

My vehicle is now in the shop for 9 weeks (!!!) and is still not

repaired, without any timeline for when it will be repaired again.

All this because Warrantech supplied two defective replacement engines

and they now try to weasel their way out somehow.

Conclusion:

I would never buy any Squaretrade or Warrantech Extended Warranty

again and can not recommend these services to anyone else.

Warrantech is an extremely unprofessional company to deal with, they

will just put you on hold for 20-30 minutes to drive you away - just

as it was described by others here on this website.

The Service Advisors at Mercedes Benz Laguna Niguel made the very same

experience and complained about Warrantech not being responsive.

Anything more expensive than a light bulb seems to be routed to 'Bill

Belchar' who resides over your Warranty claim case and never returns a

phone call. Whenever I tried to call him, I only got his voicemail and

none of my VMs was returned.

This seems to be part of their scheme in trying dissuade customers

from making claims and getting repairs paid.

Thorsten

Oceanside, California
U.S.A.

"> CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

Click Here to read other Ripoff Reports on Warrantech Automotive

3 Updates & Rebuttals

Lee

North RIchland Hills,
Texas,
U.S.A.

On The Contrary

#2UPDATE Employee

Sat, September 16, 2006

First you did not pay Warrantech 2500.00. You paid your agent 2500.00, who is NOT employed by Warrantech. Second, Warrantech Automotive is the administrator, not the writer of the contract. We don't make the rules, nor did we write them. The responsibility of understanding the contract rules and stipulations lie with yourself and regardless of what you were told it would cover, it would have been your responsibility to have read the contract before you signed it. Third, you are wrong about that 30 day warranty. Any car sold on ebay gets this free 30 day warranty, it could be a 1972 Turd and it would still get it. You are ill informed if you think that I am wrong. I deal with it everyday and I KNOW THESE CONTRACTS. The responsibility lies with the person conveying the coverages to you in a truthful manner and you reading a document before you sign it, otherwise I have some Oceanfront property in Death Valley I would like to sell you. Warrantech does not write the rules, we just enforce them, so tell me again how exactly did we rip you off? Seeing how we didn't sell it to you, we didn't write it, and we can't force you to read it. Sounds to me that maybe the blame finger needs to be pointed in your direction.

Thorsten

Oceanside,
California,
U.S.A.

Regarding the "Facts" from Lee at Warrantech

#3REBUTTAL Individual responds

Fri, September 15, 2006

First of all, your whole argumentation starts on the wrong premise - that this would be about a 30day Warranty given for free and the vehicle being no more than 45 days old. Your point is nonsense and just proves that you have not even read my ripoffreport complaint before answering. The truth is, I BOUGHT a Warrantech Auto Warranty for $2500 - you hear me, I bought it and paid it. Second, I drove the car for 9k miles, about 8 months. Third: I am not reading anything into the contract. I am just warning other consumers to believe the lies being told by Squaretrade Reps when they sell those policies/warranties for Warrantech. The people tell consumers they will get new OEM parts, while in fact they get cheap stuff from the trash bin or your friendly neighborhood chop-shop. Warrantech delivered two defective engines to MB Laguna Niguel, this caused the whole repair to take 11 weeks in total ! I can supply pictures taken by Mercedes Benz as proof for how bad the Warrantech replacement engines were. And finally, one point - many of the Benz M112 engines used in C,E and M-class vehicles have gotten oil consumption problems, at times with only a few hundred miles on the clock. This is ridiculuous and certainly a way more premature failure than any other car I had over the past 20plus years. It just shows how bad Mercedes-Benz has gotten. The point is, however, that even Warrantechs expensive $2500 does not protect you in any way. Bottom line: I sold that vehicle after it was fixed in almost 12 weeks at a great loss and will certainly never buy a Benz or a Warrantech contract again. Hopefully, this keeps others from trusting these two companies when they promise heaven and earth. Thorsten, Oceanside, CA

Lee

North RIchland Hills,
Texas,
U.S.A.

The Facts

#4UPDATE Employee

Fri, September 15, 2006

First and foremost I must state that not all the facts are being stated. Warrantech is the ADMINISTRATOR, not the writer or the seller of this contract. We were employed by Square Trade to enforce the stipulations of THEIR contract. Secondly, My question to you is how long had you owned the vehicle before it had engine failure. Being that 99.9% of these contracts are sold on Square Trade are Ebay purchases, the probability of you having owned the vehicle for 30-45 days is extremely high. Square Trade base warranties are GIVEN, not sold to any car sold on EBay, meaning you could sell a car you know has a bad engine and that contract will pay out 3k towards an engine or transmission with no such thing as pre-existing even though half of the contracts are usually 10-15 days old and less than 500 miles on it when they call in to claim worn out internal engine parts. It doesn't take a rocket scientist to know that engine parts don't usually wear out in a matter of days past your purchase, yet they still give the buyer and most of all the seller the benefit of the doubt and not only give the contract to the buyer free of charge, but will pay up to 3k on anything engine or transmission related for up to 30 days. We still have people who got this FREE contract complaining that we are ripping him off. Which is laughable if you think about it. The contract you bought while expensive, in no way, shape or form says it will buy OEM new parts and had you read the contract you would see that it will pay X amount of dollars per repair up to I believe 3k per visit up to the aggregate value of the vehicle at the time of repair and the total amount of claims and will expire the minute the total of said repairs exceeds the value of the vehicle. The contract states, and I quote" Covered parts- to include new, used, reman or Like Kind Quality parts can be installed. You read what you wanted to read and that is the bottom line. What I find funny is that you would expect Square Trade to Give you a 21K engine on a car that was worth half that, that you bought off Ebay. If that was the practice of any aftermarket insurance company, they would not be in business long. So before you say how bad we are ripping you off, maybe you need to think about how bad the person that sold you the vehicle is laughing.

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