January 11, 2011– Chicago, IL – Consumers across the United States are alleging that National Dealers Warranty, Inc, a Missouri based Auto Service Contract company, pressured them into buying expensive and unnecessary vehicle service contracts from which they received little or no benefit. The Better Business Bureau (BBB) advises customers to remain extremely skeptical of any company marketing similar after-market contracts.
Consumers of National Dealers Warranty - also known as Automotive Warranty Protection, Canadian Auto Warranty Services, NRRM LLC and Stop Repair Bills.com - say that in some cases they spent hundreds of dollars for extended warranties and still ended up paying thousands more for repairs that were not covered under plans. The Missouri Attorney General has also taken complaints from angry consumers alleging the company’s business practices are unethical and misleading.
“The volume and serious pattern of the complaints involving extended auto warranties is troubling,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Consumers have been saying they were pressured or misled into buying warranty contracts they don’t want or don’t need and don’t seem to address many repair issues.”
Joseph Thomas of Chicago said, “I had the insurance for about four months and my car broke down. They paid for towing to the shop. There was a problem with the transmission. They sent someone out to look at the car and told me that they would not fix it because there had been modifications done to the car. I bought the car used and it had 20 inch rims when I bought it. It was just for appearance and had nothing to do with the transmission. The mechanic confirmed that. Even though I had paid for the insurance I ended up leaving the car in the shop a month since I did not have the money for the repair.”
Joyce Rutland, another complainant of Evanston, IL said, “I paid them $87 a month for six months. I called them when I had a problem with a pump. They asked for proof that I had oil changes and I sent it. Then they stopped returning my phone calls. I contacted the BBB and got my policy cancelled and a refund. I did everything that I was supposed to do and all they did was take my money.”
The BBB offers the following advice for dealing with firms offering extended auto warranty contracts:
- To find trustworthy auto warranty companies, consumers can check out FREE BBB Business Reviews online at www.bbb.org
- Read your manufacturer’s warranty and contact your dealer or manufacturer to ensure that you are not purchasing duplicate coverage.
- When considering an extended service contract or any other type of telephone solicitation, insist on getting a contract in which all terms and conditions are clearly explained before signing up or providing credit card or other payment information.
- Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer.
For more information on extended auto warranties, visit www.bbb.org
As a private, non-profit organization, the purpose of the Better Business Bureau is to promote an ethical marketplace. BBBs help resolve buyer/seller complaints by means of conciliation, mediation and arbitration. BBBs also review advertising claims, online business practices and charitable organizations. BBBs develop and issue reports on businesses and nonprofit organizations and encourage people to check out a company or charity before making a purchase or donation.