What is the name of your state (only U.S. law)? Colorado
....I purchased a used car from a small dealership Sept '08. A week later, I was having mechanical problems, only to find out it was the transfer case. I went back to the dealership asking for help, and the finance person said she would add an extended warranty to my loan, redo paperwork for the purchase date so it would be retroactive to the purchase date and the repair would be covered.
I filed reimbursement for the repairs and was denied, stating the paperwork filed was dated AFTER the repairs. My copy of the contract is dated the purchase date, as well as my buyer's copy.
I was fortunate enough at the time financially, and figured sometime down the road I might have another expensive repair and will myextended warranty then (with a $200 deductible)
20 months later brings us to this month, May '10. My Service Engine Soon light was on, I had clouds of white smoke coming out of the exhaust, and a whirring sound at idle. I called my warranty company to confirm procedures and found out that after giving them my contract number, it was under someone else's name with a different vehicle. I was asked to fax my warranty purchase copy so they could research it. Meanwhile, I took it to a repair shop to be checked out and recieved my diagnosis 5/17/10. I continued to call the warranty company for updates, and on 5/19/10 was instructed to call the dealer that sold me the car. I contacted the dealer on 5/20/10 and spoke to the person that sold me the warranty. It was to be 'looked into' and would be called back the next day. I never received a call back, and finally reached her on 5/22/10, only to find out that they wouldn't know anything until the following monday 5/24/10.
The dealership still didn't return a call as I left messages 5/24 and 5/25. An area sales rep for the 3rd party extended warranty company called me directly.
He explained.....When my first claim in 9/08 for the transfer case was filed and denied, he had informed the dealership that my entire extended warranty purchased for 3yrs/36k would not be accepted and was denied entirely. At that time the dealer should have refunded the money to the leinholder(the bank I financed with) OR offered me a new start with a different 3rd party warranty company.
I've been making payments on this money to my bank for 20 months now and in good faith thought I had an extended warranty. It's only now that I need to use it, I find out I never had any sort of warranty at all!!
For 20 months I've been paying interest on the warranty money added to my bank loan, all the while the dealer has been sitting on MY money. (it was never sent to the warranty company).
The owner of the dealership explained that they pay the warranty company the cost when they receive an invoice. They never received an invoice ( as the company denied my warranty) so the money was never paid, nor was it returned to the bank/leinholder. It was a situation that "fell thru the cracks".
I have had a rental car for 9 days while this discrepancy is solved, when the dealer was informed 20 months ago about it (per extended warranty company).
The dealer wants to sell me a new warranty now instead of returning the money back to the bank/leinholder. Their "offer" to solve the situation is to sell me a basic one yr warranty, and then be able to refund the balance of the warranty cost directly to me to use towards the current repairs needed. BUT...this does not help me when I have a car sitting at the shop waiting for the "ok" to be repaired for $2700, which is considerably more than the "refund" I would get.
With the warranty, I should've only had a $200 deductible!!
Who do I pursue for restitution?? This is clearly NOT my error/fault/etc as I believed I had this extended warranty as I had been giving my copy of the paperwork, and have been paying the cost of it included in my car payments for 20 months (with interest don't forget!)
Thank you in advance for any advice/suggestions!!
....I purchased a used car from a small dealership Sept '08. A week later, I was having mechanical problems, only to find out it was the transfer case. I went back to the dealership asking for help, and the finance person said she would add an extended warranty to my loan, redo paperwork for the purchase date so it would be retroactive to the purchase date and the repair would be covered.
I filed reimbursement for the repairs and was denied, stating the paperwork filed was dated AFTER the repairs. My copy of the contract is dated the purchase date, as well as my buyer's copy.
I was fortunate enough at the time financially, and figured sometime down the road I might have another expensive repair and will myextended warranty then (with a $200 deductible)
20 months later brings us to this month, May '10. My Service Engine Soon light was on, I had clouds of white smoke coming out of the exhaust, and a whirring sound at idle. I called my warranty company to confirm procedures and found out that after giving them my contract number, it was under someone else's name with a different vehicle. I was asked to fax my warranty purchase copy so they could research it. Meanwhile, I took it to a repair shop to be checked out and recieved my diagnosis 5/17/10. I continued to call the warranty company for updates, and on 5/19/10 was instructed to call the dealer that sold me the car. I contacted the dealer on 5/20/10 and spoke to the person that sold me the warranty. It was to be 'looked into' and would be called back the next day. I never received a call back, and finally reached her on 5/22/10, only to find out that they wouldn't know anything until the following monday 5/24/10.
The dealership still didn't return a call as I left messages 5/24 and 5/25. An area sales rep for the 3rd party extended warranty company called me directly.
He explained.....When my first claim in 9/08 for the transfer case was filed and denied, he had informed the dealership that my entire extended warranty purchased for 3yrs/36k would not be accepted and was denied entirely. At that time the dealer should have refunded the money to the leinholder(the bank I financed with) OR offered me a new start with a different 3rd party warranty company.
I've been making payments on this money to my bank for 20 months now and in good faith thought I had an extended warranty. It's only now that I need to use it, I find out I never had any sort of warranty at all!!
For 20 months I've been paying interest on the warranty money added to my bank loan, all the while the dealer has been sitting on MY money. (it was never sent to the warranty company).
The owner of the dealership explained that they pay the warranty company the cost when they receive an invoice. They never received an invoice ( as the company denied my warranty) so the money was never paid, nor was it returned to the bank/leinholder. It was a situation that "fell thru the cracks".
I have had a rental car for 9 days while this discrepancy is solved, when the dealer was informed 20 months ago about it (per extended warranty company).
The dealer wants to sell me a new warranty now instead of returning the money back to the bank/leinholder. Their "offer" to solve the situation is to sell me a basic one yr warranty, and then be able to refund the balance of the warranty cost directly to me to use towards the current repairs needed. BUT...this does not help me when I have a car sitting at the shop waiting for the "ok" to be repaired for $2700, which is considerably more than the "refund" I would get.
With the warranty, I should've only had a $200 deductible!!
Who do I pursue for restitution?? This is clearly NOT my error/fault/etc as I believed I had this extended warranty as I had been giving my copy of the paperwork, and have been paying the cost of it included in my car payments for 20 months (with interest don't forget!)
Thank you in advance for any advice/suggestions!!
