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Beware of purchasing an auto warranty from CarChex!

I purchased an expensive CarChex/Royal Administration extended warranty policy for $3,090.00 for a Silver Coverage. Since the purchase I have not had any issues with my BMW 328i 2007 since I take good care of it. However recently, the window regulator of my left rear window has been failing and my window is not going up. But since I purchased a warranty so that I wouldn’t have to worry for this type of failures I was confident that there was nothing to worry about. For reassurance, I went back to my contract agreement which states:

“2. GENERAL TERMS

The following General Terms are applicable at all times:

B. FAILURE OF COVERED COMPONENTS: We will pay or reimburse You for reasonable costs to repair or replace a Covered Component in the event of a Breakdown. Our amount of authorization may be based on the utilization of new parts, remanufactured parts, or replacement parts of like kind and quality.

C. APPROVAL OF COVERED REPAIRS: All Covered Repairs must receive prior authorization by the Administrator. The Administrator may be contacted at (800) 871-0467.

3. COVERAGE

This Contract covers ONLY the components/parts listed below:

...

ELECTRICAL:

Alternator, voltage regulator, starter motor, starter solenoid, ignition switch, front & rear wiper motors and switches, washer pump and switch, headlamp switch, turn signal switch, rear defroster switch, AC/heater blower speed switch, power window motors, regulators and switches, power door lock actuators and switches.”

Since the agreement was clear that it would cover the window regulator, I went and followed the instructions for a claim and brought my car to the shop. The next day, after the diagnosis, the shop called me to tell me that they received the authorization from the warranty which I thought was good news. However they added that there would be a ~$250 balance since the warranty would not cover the whole cost of the repair. My deductible is $100 and this is all I can afford right now. I got so shocked by the news that I decided to call the administrator to get a better understanding of the situation. When I called Royal, they said I had to talk to Carchex because they are the ones I had the contract/agreement with. When I called CarChex they said that Royal was the administrator they are the ones to negotiate with.

Both companies refused to let me talk to a supervisor and continued repeating that they will only cover a certain amount of hours for the job. They tried to make me understand that I should be directing my concerns to my shop instead for charging for more hours. Why would I need to have a warranty if I wanted to deal with the shop? Nowhere is it said in the agreement that a component replacement/repair would be covered to a certain limit. If I knew there was possibility that a covered repair would not cover fully the costs other (minus my deductible) I would have reassessed the need to have a warranty or reassessed where I would bring my car. Now that my car is already at the shop even if I would want to shop around and go to another place I would still have to pay for a $140 diagnosis fee so it would just not make any sense whatsoever.

I tried to negotiate with them saying that in the future I will not go to the same shop and would go to a cheaper one if I have to, and to please be considerate since it is my first time using the service. I even begged them! They started yelling at me as if they were the victim! Can you believe that? They continued repeating that there is nothing else that they will do and would not consider my case. Basically they continued refusing to resolve the situation with me.

I am extremely frustrated and feel that I am being ripped off by them. I feel that they have the worst customer service ever and do not know that their client’s satisfaction should be their goal. They are clearly not aware of that. Therefore I would recommend anyone to stay away from them and not to make the same mistake I did. I have been doing research and seeking legal counsel. I prefer losing money through legal/resolution actions rather than letting this go... That is how disappointed I am.

Monetary Loss: $250.

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Anonymous
#1384863

dont worry people i just turn them into the attorney general office both of these scamming companies and haired a lawyer if you think you been scamed email me at warnntyscam@gmail.com thank you.

Anonymous
Detroit, Michigan, United States #1317482

They have me going throgh *** right now over my engine which is covered . I have lost 2 days of work n spending money on a rental car .

Im a single mom with 3 teens . I cant afford to pay them ,pay a shop and rent a car while they are sitting on thier hands.

What do i do ??? Im in tears right now

Anonymous
#1248012

Carchex and Royal Administration Service is a ducking joke. Don't I repeat don't buy any warranty from this company. Totally ripoff they don't cover ***.

Anonymous
#1117156

be very careful. I got 2 quotes from them on the same car.

I was smooth talked in giving them my credit card info. I canceled both quotes after receiving a billing from PAYCHECK on 2 supposedly contacts. They maintain I have a contract. I told CARCHECK, I don't want to deal with them and that did not stop the billings.1st cost, $129.99.

After I said it was too expensive, they then quoted $69.00.

Looks like a court date.I'm 79 yrs old. Most likely this will fall under SENIOR FRAUD.

Anonymous
#1099701

Wow...your review saved me from making a big mistake of signing up with carchex...

Anonymous
#1086226

if they screwed with me like that I would go to their office

and find a nose to land one on!!!

Anonymous
#1018429

Appears that they deny many of the claims presented. While i understand that many claims are "right" to be denied, it appears that Royal Administration Services/CarChex is in the business to deny claims. Definitely going to xcl my contract.

Anonymous
#922646

I am making a complaint against CarChecx. I have a

BMW and I have being paying my bill.

My car start leaking and went into the shop and BMW call CARCHEX and they sent a tech out to look over my car and approve the bill. After my car came home, I notice oil on my driveway and took the car back to BMW and when they contact CARCHEX the denied that I ever got my car fix and was very nasty to me over the phone. One of manager took my information down and told me that they are not going to fix my car.

I have been on the phone all day to get them to fix my car.

Anonymous
to lisa West Palm Beach, Florida, United States #1356688

Im going through the same issue with Carchex, if anyone can suggest what steps to take please post. They are not paying any claims and my contract is over $5000.

200 a month with a $200 deductible and they denied my first claim this is robbery.

.

Anonymous
Martinsburg, West Virginia, United States #905860

I have a 2007 Mazda CX-7 that I purchased used. I bought the extended warranty from Carchex because they had the best reputation out of all the other companies I researched and not knowing the full history of the vehicle (other that what was repaired at the dealership) I wanted a warranty to protect me in case of major failures.

Everything was fine up until one of my exhaust valves burned due to what they called "excessive carbon build up". It does indeed state in their contract that repairs due to this type of damage are not covered. The thing is that ALL these particular vehicles have this issue and mine wasn't even that bad (considering it has almost 126k) according to 3 different Mazda techs. No one can say with 100% certainty that carbon build up caused the damage, but Carchex is adamant that it did and will not cover the cost of repairs, even though the inspector said there was no other signs of neglect or abuse besides the carbon build up.

I even appealed to them directly with no resolution.

Now I'm out quite a lot of money for repairs and of course close to the Holidays. I would recommend staying away from this company as all they care about is the exact letter of the contract and not helping people when they need it most.

Anonymous
to Scott Martinsburg, West Virginia, United States #906174

Upon speaking with Jason Goldsmith (who is the CEO) Carchex is offering me $300 towards a repair bill that will likely exceed $1500. I will say that at least he was willing to listen, though I was really hoping for a 50/50 split. It's better than nothing at this point, so I'll take what I can get.

Anonymous
#877774

I must say I did a google search on carchex after talking to a sales rep.

He promised much like other complaints have sated.

After reading many many complaints I have decided not to purchase from this business as I honestly feel they are not in the business of backing up what they tell you and give customers the run around not willing to accept what they have preached. I'm currently researching others to see if the same applies.

Anonymous
#862103

My name is Brian Delman and I am the Customer Support Manager at CARCHEX. Fortunately,we were able to obtain a complete resolution with this customer regarding this matter.

With that said, we still believe it’s important for us to provide the facts behind any customer complaint and allow the public to determine the credibility of the complaint to help determine the validity of the complaint.

In this case, the customer’s Vehicle Service Contract (VSC) did provide coverage for the window regulator. However, as per the terms in the customer’s contract, the VSC administrator used the National Labor Guides to determine proper repair times for the customer’s vehicle. The most reputable repair shops nationwide also use those same National guides to determine labor times for repairs. The standard for the repair in question called for 1.7 hours to repair the window regulator and the repair shop was charging for 3.5 hours, more than double the appropriate time for the repair.

As for the customer’s claim regarding being yelled at on the phone, it’s simply not true.

In fact, we responded very calmly while still trying to assist the customer. Further, we took the time to explain that these contracts are going to abide by the National Labor Guides, as is the case with the majority of service contracts. We advised the customer that this particular repair shop was charging more than double the normal allowed repair time.

Sadly, we come across this issue more than you might think, and plenty of repair facilities try to take advantage of a VSC provider and the customer.

Our business exists to help protect consumers from high repair bills, from being overcharged, or taken for a ride on a repair, which was clearly happening here. We realize it’s easy for a repair facility to blame us, but the fact remains this shop was overcharging the customer, plain and simple.

As always, the CEO of CARCHEX, Jason Goldsmith, makes his information readily available on our website and every piece of communication sent to our customers.

If you are ever in need of assistance, you can reach him directly at CEO@CARCHEX.COM or by calling 1-877-227-2439 Ext. 1449.

Anonymous
to Anonymous #1005393

Instead of replying back to defend your *** company, find a way to fix the issues that 100% of your customers have with you.!!

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