Consumer Complaints and Reviews
They have notified thousands of their customers that they will not honor their contracts because of a situation with their "administrator". They continue to do business selling warranties to people. In my experience this is the second time this has happened to me on a service contract. They sell these warranties, default by saying their "administrator" is in bankruptcy, move to another administrator, and start the whole cycle over again.
I purchased an extended warranty contract from Warranty Gold in 2001. It was a 6-year/100,000-mile bumper-to-bumper extended warranty including rental car. I just took my car in to the shop, and learned that my rear differential needed replaced for $1350.00. Warranty Gold will not pay on the claim, because their warranty administrator has filed for bankruptcy.
I purchased the warranty through Warranty Gold, the warranty came from Warranty Gold, Warranty Gold is still in business and selling warranties.
They will not pay on the claim or refund my money for the warranty either one. They claim that the money they set aside to pay claims was frozen in the process of their administrator filing bankruptcy. My beliefs are that they should be paying these claims themselves in the meantime, and then hoping to recoup the money at a later date from the administrator. They are the company that I paid for the contract and the company that I call for service. My problem is directly with them and they refuse to do anything to resolve it.
I bought two extended warranty policies for my cars. I went to have one of my cars repaired and found out that they are no longer paying claims for my policy. When I called to find out what had happened I was told that the underwriter had filed for bankruptcy and that they had frozen all of their assets. When I called back I found out that they are still writing policies. Don't you think that if they are still selling that they should be able to honor all policies?
These two policies cost me approximately $2,800.00. Now I have no way to repair my car and no extended warranty coverage available to me.
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.
Three years ago I purchased such a warranty from WWW.WARRANTYGOLD.COM at the recommendation of WWW.EDMUNDS.COM. The cost of such a policy was $1175 for coverage on a '96 vehicle covering from 17,000 to 100,000 miles basically bumper-to-bumper. I used their process only once and they covered without question for a $200 repair that they only covered about 90% of the cost even though there is no deductible.
I then needed one final fix for the vehicle as it is going out of maintenance in the next few weeks. The wiper blade motor circuit board developed a tendency to stall the motor on low speed. Obviously very dangerous in the rain. The Oldsmobile dealer called in the issue only to find that Warranty Gold wanted all car records since 1998 to see if I had been maintaining the car. I also called and got the same answer even though the dealer and I both explained that a 'circuit' board costing $87 installed, does not have any relationship to vehicle maintenance as it is not maintainable. It either works or not. I will never deal with a company like Warranty Gold again as they will not work with the consumer except to take his money.
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