In 2007 I bought a luxury care package from Warranty Direct aka Interstate after being contacted by way of postcard. I paid $1697. I was told my warranty would provide coverage from bumper to bumper. I had one occasion to use the warranty in 2008. Interstate paid out $153.00. On September 3, 2009 I experienced a problem with my car. After having it towed to a dealer and the problem identified I whipped out my warranty card with the full expectation that my claim would be covered. I THOUGHT my problem would be quickly resolved. This began a nightmarish spiral into *** dealing with Interstate. As indicated by other customer experiences my claim was DENIED. It's better for you to read the email exchange to follow what has transpire. I am including email addresses of the company executives so that others can follow suit and let our voices be heard. A class action suit and a report to the attorney general's office are most certainly to be expected and in order. Please follow up with letters to your local politicians and maybe we can as a group, put an end to their BS.
Sent: 09/23/2009 1:02 PM
To: Mike Rogers
Cc: Jon Harkavy ; Troy Winch ; Pam Roy ; firstname.lastname@example.org
Subject: Shame: Unscrupulous Acts of Interstate National Dealer Services to Protect it's Insurance Company.
Michael T. Rogers , Chairman and CEO, ,
Dear Mr. Rogers:
Please allow me to introduce myself. My name is Ms. Perry. I reside in Brooklyn NY. I am a single parent with a child. I purchased an extended warranty with Interstate National Dealer Services at 333 Earle Ovington Boulevard for the purposes of having peace of mind and confidence that in the event of a vehicle break down my car would be promptly serviced and back on the road. My peace of mind has been turned into a complete nightmare. My vehicle broke down and was immediately towed to a car dealership for repair. After diagnosing the problem with my engine my warranty company, Interstate, was contacted and an inspector sent shortly thereafter. It was noted that the valves on the engine were bent, but the timing belt was intact and the engine had not been starved. The Inspector and the Service provider indicated that the car had jumped timing. Despite this information being document my claim was denied because "there was no stated cause of fault". I spoke to several customer relation representatives who seemed to brush me off and reiterate the claim had been denied. Mr. Tony Serrano advised me on 9/21/09 that "he was authorized to speak on and deny claims on behalf of the company". He stated "the claim would remain denied until I or my mechanic could prove what caused the failure". When I asked to speak to someone from corporate about the situation he referred me to customer relations to lodge a complaint. I was told I would have to send a fax to have a senior level manager speak to me about the situation. After hours of getting brushed off by Interstate I was ultimately told by a CCR, Danielle # 1373 that the issue was going no further and that I could not wait on her line to speak to anyone else. This morning I went to the office of Interstate National Dealer Services and was allowed to speak to Mr. Larry Cassani who advised me that the claim was denied because "there was no cause of fault and that the timing was working properly". His comment contradicted the comments of his subordinates and the previous reports submitted. When I asked if the policy stated a claim could be denied because no fault could be found he said "YES". He stated "it was his job to protect his insurance company and that is what he was going to do". He advised me that "my having to travel to get to any of my three jobs was not of his concern and had nothing to do with the claim". I asked if I could review the policy with him and he stated "NO". I asked if he could review the policy with the Attorney General and he stated "YES". I asked if he could have someone from Interstate speak with the Service provider, he stated "I do not care what they have to say, they have nothing to speak to us about".
Despite me having travelled to their location to get a proper explanation and treating Mr. Cassani with courtesy and respect, I was told "we have nothing further to discuss with you , Please leave our offices and we will dispatch another inspector in 24 - 48 hours".
Proof of loss has already been established and my claim has not been paid. The Attorney General has been properly notified of this unscrupulous activity, and I am now appealing to your company USA Risk Services for intervention in this matter. You are entitled to be informed of the unprofessional activities of your client in it's attempts to protect your company that serve nothing better than to betray the public's trust and subject your company to public scrutiny. Interstate's antics have been the most deplorable I have ever seen. I am surprised companies like this are still in business.
I would appreciate if you could assign someone from your company to open a claim and follow up on it.
Sep 29, 2009 11:45:16 AM, email@example.com wrote:
My name is Gifford Dente and I am Vice President of Claims for Interstate National, your service contract administrator. I have been asked to reply to your email regarding your claim denial.
I have reviewed the circumstances surrounding the denial of your claim and have determined the denial was justifiably made. As I understand it the drive belt seized and was the beginning in a sequence of events that damaged your engine assembly. This claim has been denied in accordance with the terms of the contract where it states under
Failure…refers to the failure of a covered parts under normal service. A covered part has failed when it can no longer perform the function for which it was designed solely due to its condition and not due to the action or inaction of any non-covered parts. In addition……
It has been determined that the cause of failure is the drive belt, which is specifically excluded under the Exclusions section of the service contract where it states
This Vehicle Service Contract provides no coverage or benefits for the following:
C. Maintenance service and parts described in your vehicles owners manual as supplied by the manufacturer and other normal maintenance services and parts including, but not limited to: alignments; wheel balancing; tune-ups; spark plugs and spark plug wires; glow plugs; hoses; drive belts; brake pads;……..
I hope that this clarifies our position on this matter.
Date: Tuesday, September 29, 2009 1:08 PM
To: Gifford Dente
Cc: firstname.lastname@example.org; , , ,
Subject: Re: 10089703
What makes me suspicious is the claim by Mr. Larry Cassani of Interstate. Mr. Cassini stated to me, in the offices of Interstate, in no uncertain terms "there was no problem with your timing belt. Your car was not off timing". This statement alone was completely contradictory to all of the previous and current reports. So where did the drive belt jam?
Sep 29, 2009 05:17:17 PM, Perry wrote:
Isn't the harmonic balancer a counterweight that reduces the vibration? There was no vibration. If the drive belt falls off and the car stops, then the engine should in fact keep running. I was stopped at a light. The car shut off. With the alleged wrapping I should have heard something. I heard nothing at all. The car has never overheated and per your report (please send to my attention), the car was not starved. I performed all the proper maintenance on the car. Now even if the drive belt slipped off, wrapped around the harmonic balancer, how do we get past the timing belt to have damaged valves on the engine. Per Mr. Cassini, in our meeting, the timing belt was intact and the car was "on timing". Mr. Cassini stated in no uncertain terms that there was nothing wrong with the timing on the car. He read that off the report to me.
I paid approximately $1700 for a luxury care warranty, which was to provide me bumper to bumper coverage. I have used the package just once prior to submitting this most recent claim. Interstate paid out $153.00 on that prior claim. I was told that even if I requested reimbursement you would prorate the $1700. I would in fact only be reimbursed for approximately 12.2 % of my original purchase price or 207.40.
I believe that Interstate is purposely attempting to avoid paying out the claim by laying fault on the customer. I was even accused by both the supervisor of claims and the National Director, Mr. Cassini, of revving the engine. It simply doesn't compute that a 42 year old woman and her 62 year old mother would be sitting at the light revving the engine, in the presence of the police no doubt.
This sounds like an unscrupulous attempt of Interstate to work its way out of honoring a contract which I was duped into purchasing with the belief that I would be fully protected as long as I did the necessary maintenance. I can't imagine that a company whose National Director would so rudely ask its client to "leave" their premises, and offer two different reasons, NO... three different reasons for a failed engine could possibly be considered credible.
I understand scam car warranty companies have been the subject of many news investigations ( http://www.cnbc.com/id/30392039 ) because of the deceptive practices. I will continue to pursue this issue, file a complaint with the BBB, and also the Attorney General's office, as well as my State and local politicians.
In short, Interstate ROBBED me. And you wonder why the American economy is failing? The corruption, cover-ups, and dishonesty are all contributing to the failure.