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Warranty Gold

9111-b Research Blvd, Austin, TX

Warranty Gold • Stuck with big repair bills • Still selling policies • Good as gold? • Still paying ... for what? • Other problems --- News • Court Extends Deadline to File Claims Against Warranty Gold • National Warranty Bankrupt

On its Web site, Warranty Gold boasts that it is "the #1 Online marketer of affordable extended warranties for your car, truck, or sport utility vehicle." Only problem is that customers who bought their policies before June 6, 2003 find themselves without the warranty coverage they paid for, following the bankruptcy filing of National Warranty Insurance. (Another underwriter is now handling Gold's policies).

Many customers are stuck with big repair bills that have not been covered, even when the repairs were authorized by advance. Yet, the company continues blithely on its way -- still selling new policies by the thousands while customers who financed their policies are still paying each month for coverage they no longer have.

David of Chicago (8/6/03) sums it up as well as we could:
Warranty Gold has defaulted on all contracts written before June, 2003, due to the bankruptcy filing of their administrator, National Warranty Insurance Company. This failure to pay for claims is a breech of contract, and failure to render services as agreed to in the contracts. They also have claimed that all funds are insured to protect policyholders, while claiming they don't have the funds to pay for claims.

Even after diagnosis by an approved repair facility, Warranty Gold is refusing to pay for repairs, as required by the contracts. On their Web site, Warranty Gold states:

Warranty Gold has put the processes into place to secure the investment that each of our customers make in our products. We have established a 'Trust Reserve Account' ("TRA") which is managed by our administrator to pay your claims for the life of your contract. Our administrator is insured to adequately cover all claims today and tomorrow. The insurer and the reinsurer are rated by A.M. Best. Your Warranty Gold service contract is absolutely reliable and secure.

In the Frequently Asked Questions section of their Web site, they further state:

What reassurance do I have that your company will be here in years to come to honor claims? Warranty Gold submits actuarily required funds to a third-party administrator, which sets up "trust reserves". These reserves are used to pay for claims. Are your vehicle service contracts adequately backed? Yes. Warranty Gold's claim reserve is reinsured to offer you, the consumer, the ultimate in protection. Our Administrator reinsures our Trust Reserves twice to adequately cover all claims today and tomorrow. The insurer that backs our contracts and the reinsurer are) rated by A.M. Best. Your Warranty Gold service contract is absolutely reliable and secure.

This situation has left literally thousands of policyholders across the country waiting to see if their contracts are valid. ANY assistance you can offer to either get a complete refund, a significant partial refund, or get Warranty Gold to honor the provisions of existing contracts would be appreciated

My car is in the shop and I am unable to pay for the repairs that have been authorized.

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