I've also had a bad experience with Direct Buy Warranty. Since it happened, I've found out a lot which I wish that someone had told me before I bought from them. So, the least I can do is share what I've learned in the hope that it helps someone else.
Here are some problems with Direct Buy Warranty's contracts:
"¢ Section VII of their contract, under Mediation, limits Direct Buy Warranty's losses in a mediation dispute to $1500. So, even if you deserve more in such a dispute, the most you'll get from them is $1500.
"¢ Under Section VIII Part A, the contract states that if a claim is made before the expiration of the 30 day/50 mile validation period, it will be denied as pre-existing. If a customer then cancels, $250 will be deducted from the refund, even if 30 days has not expired. Are you kidding me?
"¢ Under Section VIII Part B, the contract states, "If You cancel this contract after the first thirty days or anytime after a claim has been filed on your VSC [vehicle service contract], WE will refund an amount of the contract price according to the pro-rata method which reflects the greater of the days in force or the miles driven based on the term of the contract selected and the date contract began, less fifty percent of the total amount paid in by You and any claims authorized or paid on the contract by Direct Buy Warranty where applicable by law [emphasis added].
"¢ In the same Section and Part, the contract states, "In the event that the dollar amount of claim/claims paid for Your vehicle exceed the amount of Your refund (less fees), You will be responsible to reimburse the administrator." That means that YOU have to pay THEM if you cancel and what you've paid is less than what they've paid in any claims! No one else does that.
"¢ Direct Buy Warranty is selling in all 50 states, claims that they are insured, but their contracts give no evidence of carrying insurance. So, if they go out of business, good luck – all you've got is a piece of paper.
"¢ That the terms of Direct Buy Warranty's contracts are extraordinarily advantageous to Direct Buy Warranty at the expense of the consumer is evident. In addition, using publicly-available internet tools, I've learned that all of Direct Buy Warranty's business addresses are actually UPS Stores! Their website lists their "European HQ" as:
Beletti Management Ltd.
Continental Risk Management CRM
Lordou Vyronos 33
Larnaca P.C. 6023
This same location houses a *** production company – unbelievable but true. Given what resides at their other addresses, there is strong evidence that Direct Buy Warranty is based outside of the United States – that is not a good thing. In a consumer complaint filed online, the customer notes that his credit card charged was processed in a foreign country." According to another complaint online, a Direct Buy Warranty agent explained by saying that they are a "global company."
Who is making sure that Direct Buy Warranty is abiding by all applicable laws, especially if they aren't an American company?
If you've been scammed by Direct Buy Warranty like I have, then do what I did: Go to your state's insurance commission. My state is looking into right now, and will probably find out what I already did the hard way, which is that they really aren't a legitimate operation. Here's a link to find your state's insurance commission http://www.naic.org/state_web_map.htm Obviously, if you haven't bought yet from Direct Buy Warranty – then DON'T – STAY AWAY!
More Review Details
- Monetary loss:
- Product or service
- Extended Warranty
- Review category
- Service Centers and Repairs
You May Also Like
- "Had a pick-up truck's windshield repaired by them only to find out they use an answering service for calls, no manager/supervisor, no complaint department, and their techs SUCK!!! They left goo..."
- "I went to dinner in the lower Greenville area of Dallas TX and went to a birthday party after. At 2:30 AM I discovered that I was towed from the..."
- "My father went in one day to get his truck's tires aligned and the truck was dropped. Not only were there external damages, but also internal. They had promised him..."
- "Jim Walter and Companies have built a defective home in so many ways that it can not be repaired and needs to be torn down it is unsafe and a..."
- "In October 2009 we decided to purchase a Maytag Bravos 850 series washer and dryer combo for approx. $1800. We figured investing in a "premium" set of appliances from..."
- "I'm an avid seller of designer purses and Shoes. Over the past 3 months, I've sold 11,000$ worth of purses with them. Clearly, my items are very high end and..."
- "Hi, I live in a city of a million people. I am a woman who works in construction. It is clearly a man who finds the product for marks. This..."
- "CarId is the worst company I have ever dealt with. They are crooks who sell used, broken, parts as new, and parts that don't fit. They then refuse to issue..."
- "This company is HORRIBLE! Do NOT use them!!! I ordered 50 coffee mugs with a simple single color logo printed on them and here's what I received: ..."