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Extended Auto Warranty Company Disputes


In a perfect world, all automobile extended warranty companies would honor their contracts without hesitation. Unfortunately, this isn’t a perfect world and some warranty companies take advantage of their customers.

If you are in the less than desirable position of having to fight with the company holding your extended warranty, here are a few things to consider.

Negotiate with the Extended Warranty Company

First thing to do is to exhaust your efforts with the warranty company. Try to remain calm and document everything. Make sure you have a copy of the auto warranty contract along with copies of your letters or e-mails sent to them.

If conversations were carried out via the telephone, document your conversations by jotting down what was said, who said it, date, time and what was agreed to. One tactic to use is to write a synopsis of your phone conversation in a form of a letter. In your letter, your closing paragraph should put the onus back onto the extended warranty company by saying something like “Unless I receive written documentation to the contrary, it is assumed that you are in agreement with the information as outlined in this letter and will take action accordingly.” This way the ball is in their court. If they don’t agree with the letter, they must notify you in writing.

If you think you’ll eventually end up in court to settle the issue, it is strongly suggested that you send the letters via Certified Mail with a Return Receipt Request. At least you’ll have confirmation that the extended warranty company did receive your letter (even if they claim otherwise).

Filing Complaints

If you find that you are hitting dead ends and they’re not honoring the contract, file a complaint with the Federal Trade Commission using their Complaint Assistant function.

While you’re at it file a complaint with the Better Business Bureau also. Although the Better Business Bureau may not be able to do much to help you in your situation, it will help to notify other unsuspecting individuals that the extended warranty company that you’re dealing with does not always live up to its end of the contract.

Time for Legal Help

If you are unable to resolve your situation directly, you may have to hire an attorney to handle the matter. Whether or not to hire an attorney to fight the extended warranty company depends on how much money you stand to lose or gain. Unfortunately, sometimes these scam companies get away with their unscrupulous behavior because consumers just don’t want to spend the extra money and energy to fight them in court. That’s why it’s so extremely important to do your homework before buying an auto extended warranty.

About the author: Felicia A. Williams is a wife, mother, freelance writer and owner of Tidbits About Money.

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