ComplaintsforCARCHEX

• Initial Complaint

  09/09/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I purchased a monthly Platinum Plan for an extended warranty on my vehicle at a rate of $125.99 with a deductible of $100.00. After paying for this plan for 5 months I was in need of services for my vehicle. I took my car to the dealership closest to my residence for services. I was informed by the dealership that my aftermarket plan would not pay for the entire cost of labor and that my deductible was $200.00 instead of the $100.00 that was printed on my "quick reference card" and I was contracted to pay, proof sent to them. Due to the nature of the repairs required for my vehicle I could not take it to the dealership where I normally have my car serviced as it was too far for me to drive without doing further unforeseen damage to my car. Both repair shops are certified Cadillac dealers and qualified to perform repairs on my Cadillac and rates are standard across all certified dealers of this vehicle. The warranty company refused to pay for all of the labor required to repair my car due to their incorrect assessment of the time it would take to make the repairs. They anticipated that the repairs would take less time than they actually did. Which all they was doing was lowballing to make the consumer pay while maximizing their profits. They quoted to the repair facility that my portion of the payment would be $673.96 which included the $100.00 deductible, however when I went to pick my car up the repair facility informed me that the warranty company left a remaining balance of $813.89. I decided to cancel my contract but due to the Memorial Day holiday they were closed, I could not cancel until the day after. On Memorial Day they withdrew the monthly payment from my account which too early as the was not due yet. When I did cancel and requested that my payment be refunded as it was taken early, I was told emphatically NO. I am requesting a refund of my payment which was taken too early, $125.99 and the overpayment from the repair of $139.93.

  

  Business response

  09/09/2024

  Thank you for bringing this to our attention.

  Your monthly payment was ran as scheduled and you are outside of your 30 day refund period.

  There would not be a refund due but in efforts to resolve this matter we will refund your September payment.

  Please allow 5 to 7 business days to see the refund. 

   

  Customer Relations. 

  Customer response

  09/10/2024

  
  Complaint: ********
  
  I am rejecting this response because: I provided the proof to the warranty company that they overcharged me for the deductible, and they are refusing to refund that as well as the payment that they took out of my account earlier than indicated in the contract.  I believe that since I enrolled in a month-to-month program, they are required to refund the payment that they were not authorized to withdraw on the 2nd of the month per my bank records.  The contract clearly states that the payments are to be withdrawn on the 3rd of the month.  This is a violation of the contract terms.
  
  Sincerely,
  
  **** *****

• Initial Complaint

  09/09/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  My deceased father purchased the extendend warranty. The car was totaled, he died, but before the car was totaled, I gave them my credit card to keep the coverage and make automatic payments from, but then the car was sold and I've repeated asked them not to make anymore payments and cancel the coverage/policy, but they will not and just ignore me.

  Customer response

  09/09/2024

  This can be canceled or withdrawn.  The business finally responded and handled my account appropriately.

  

  Business response

  09/09/2024

  Based on the name and email address provided in your review, we are unable to locate your contract. Please email ****@carchex.com with your contract number so that we can properly address your concerns.

  Customer Relations. 

• Initial Complaint

  09/04/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  My service Service Contract Number: ********* I am a private customer. My car in question is a 2017 Genesis G90 purchased second hand near San Francisco from a major dealer. A good family vehicle. I purchased the after-market warranty from CarChex under "Titanium Coverage" tier, their lowest liability, highest warranty tier, with $200 out of pocket. The coverage is active until 02/2026. In February, 2024, I had a case of warranty. The car has been services in Huynday and later Genesis of Kirkland dealerships, as available in Seattle area. Several things went not as expected from the contract. 1. CarChex refused to pay the entire cost of the repairs. My out-of-pocket ended up being so far over $1000. They claimed that the dealer wanted more than national average for this repair. There is no other dealer in a radius of hundreds of miles and I have no indication that they overcharged. 2. The employees of CarChex claimed that the initial assessment of ~$370 was covered, yet they refused to pay it. I lost count of the number of phone calls, emails and more emails to get my warranty honored by them. 3. The dealer also became frustrated by how slow the communication was and how hard they are too reach. CarChex has not answered a single email I have ever sent to their employees after their initial outreach. I have at this point exhausted any means of reaching a satisfactory resolution and am hence turning to you for assistance.

  

  Business response

  09/09/2024

  Thank you for bringing your concerns to our attention and for the opportunity to respond. ******** **** ****** ("***") administers repair claims brought under vehicle service contracts (“contract”) sold by Carchex. 
  The claim at issue related to your complaint was reviewed by an *** Senior Legal Claims Specialist (“Specialist”), who is an ASE-Certified Master Mechanic.  Based upon all available information and documentation and pursuant to the terms and exclusions of your contract, the Specialist determined the claim was adjudicated correctly. The out of pocket costs are the contract holders responsibility. Nothing further will be authorized on your claim. If you have any additional questions please contact claims at 800-********.

  Customer Relations. 

  Customer response

  09/09/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  1. Out of pocket cost is supposed to be $200, not in excess of $1000 as is the case today.

  2. On three separate occasions, representatives from CarChex and ********* assured me that the initial assessment fee of the work required was also reimbursable to me under my policy and provided me with a number to call to obtain that reimbursement. Yet, when I called it, the person there assured me that is of the scope of the contract and gave me an email to which to send my concerns. I did so and never heard back. No justification has been provided as to why it was rejected.

  3. None of my emails with the supporting documentation to the above issues have ever been responded to. When I spoke on the issue in item 2 above, the information was missing from the file and when I resent it to the email address given, it was also ignored as noted above.

  4. I enclosed here the said bill that the company has repeated ignored. The expert technician will recognize the cost item that is due to be reimbursed.

  So I am not of the impression that my contract was fully honored. Rather, my sense is that an arbitrary decision was made as to how much they will pay and that is it. The entire practice of ignoring messages and not following up is indicative of a very poor customer service and some intrinsic issue with how a follow up is discouraged systematically to prevent customers from getting their rightful payments. FYI, I draw my comparisons from other major insurance companies I have had experience working with as a customer. It is very different over there.
  

  
  Sincerely,
  
  ****** ******

  

  Business response

  09/10/2024

  The claim currently has authorization for over $4000.

  This authorization has exceed what you have paid into the policy. 

  We stand by our adjudication.

  If you have any additional concerns you may follow up with claims at 800-********.

   

  Customer Relations.

  Customer response

  09/10/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  It says no where in the policy that the amount to be paid on a claim has a ceiling of any kind nor that this ceiling is dictated by the amount paid into the policy.

  Respectfully, your response makes no sense.

  I am referring you back to my original points and expect corrective action on your part to honor the policy.

  Also, my policy is valid for an additional roughly 18 months, so does your response imply that you are no longer offering me any coverage for this vehicle going forward? That would be an obvious breach of contract too.
  

  
  Sincerely,
  
  ****** ******

  

  Business response

  09/11/2024

  We are standing by our adjudication. 
  There will not be a REFUND as we have paid out more in claims than you have into the policy.
  There will not be anything additional paid out on this current claim as we have verified and authorized what is covered by the contract. 
  As stated in the previous response the customer is responsible for any out of pocket expenses. 
  The claims team will be happy to break down the authorization as well as the payment for your current claim. 
  If you have contract specific questions such as what you have mentioned you may contact customer service at 800-********.
  Carchex considers this matter closed. 

   

  
  Customer Relations 

• Initial Complaint

  08/27/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  I purchased a CarChex car warranty on my vehicle in August of 2023 and paid monthly for coverage on a 2002 Honda Accord. On 4/22, my vehicle transmission gave out in the middle of the road with my family inside. After safely getting my family out, I had the vehicle towed to a ASE certified shop, which was a requirement explained to me during sign up. I immediately reached out to CarChex and was assured things would be taken care of. CarChex asked the shop to send over the estimate of repairs and that they would be in touch. That was the beginning of a stressful journey of which CarChex would not cover what they said. I was later advised they needed to send an inspector out to check the vehicle. After missing the deadline for when the inspector was to arrive at the shop, he finally did show up the following week. The shop owner called to tell me that CarChex’s inspector refused to drive my vehicle from their lot to experience the transmission issue, the inspector stating he had worked with them for over 20 years and had never had a vehicle break down yet and he wasn’t about to start. CarChex called on 5/8/24 and advised I needed to have my vehicle moved to another shop and offered options. While on the phone, my wife called each shop offered, to which each responded that they did not specialize in transmissions. One suggested location was even permanently closed!! They called back later and offered an ***** transmission location and the vehicle was towed there. After stating they could not replicate the problem, my vehicle was driven home. I took a video pulling into my drive as the transmission began jerking yet again. I cancelled my warranty on 6/3 after realizing it was a scam to drag buyers along. The vehicle has been towed twice more since canceling due to the transmission jerking to the point that it finally gives out and won’t go anymore. In cancellation I offered CarChex the option to settle the scam, but received no response from the call taker’s higher ups.

  

  Business response

  08/30/2024

  Carchex requested that the Administrator of your Vehicle Service Contract examine your claim based on the review you have provided. The results of this investigation indicate that the claim was adjudicated correctly per the terms of your contract. It is stated on the bottom of every page of your contract that "NO CLAIMS WILL BE PAID WITHOUT PRIOR AUTHORIZATION." There was no prior authorization for your claim therefore the claim will remain denied. 

  Nevertheless, Carchex will refund your policy in full upon execution of signed settlement release agreement. If you wish to accept this offer please email ****@carchex.com so we may draft the Agreement and email it to you for your electronic signature.

  Customer Relations. 

  Customer response

  09/04/2024

  Hi BBB Resolution Team,

  As of the writing of this message, this complaint remains unresolved. I am pleased that CarChex has offered a full policy refund, but I have yet to receive the Settlement Release Agreement described by the business in order to review and hopefully settle the claim. I have additionally not received a refund in lieu of a Settlement Release Agreement. Attached is the email I sent to the directed CarChex email address on September 2, 2024 requesting the Settlement Release Agreement. If the lack of a completed resolution does not immediately qualify for the claim to reopened, is there a time limitation on when a claim can no longer be reopened if no agreement or refund are satisfactorily received? Thank you for your assistance in bridging the communication between myself and the business.

  ******* *********

  Customer response

  09/16/2024

  ****** and BBB Team,

  As of 6:02pm on 9/16/2024, the settlement agreement offered by CarChex Client Relations has been signed by both myself and ********* ********* in order to settle the outstanding claim via a satisfactory refund amount offered by CarChex within said agreement. At this time, I will continue to update the BBB claim here on further correspondence and when a refund check has been received and processed, at which point this claim will be fully settled. Thanks for your help in mediating this matter towards a satisfactory resolution.

  ******* *********

  Customer response

  09/16/2024

  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Sincerely,
  
  ******* *********

• Initial Complaint

  08/26/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I have been paying $232 per month for this warranty insurance happily. I took my BMW to *** **** *** to get fixed because the car would not start. I was informed after *** **** filed the claim that they do not use ********** **** ****** at thier facility. They said they do use ********* which is a the parent company of Carchex. Then, I was informed that Carchex would not cover the charges over $5000. Which I was unawre of. After *** **** reviewed my car for damages, I was told that a substance had been put in the fuel tank so then it now became Vandalism issue so I contact my car insurance ***** who said they would pick up the claim in full due to the nature of the issue. I contacted Carchex August 7, 2024 August 8 20247 and August 9 2024, on the August 9th call when I found out that the car would be handled by ***** I told Carchex that I would no longer be needing their coverage because the vehicle was totaled and ***** is taking care of it. Today, I got an text from my bank stating that Carchex charged my account $232.52 for warranty. I immediatly contacted Carchex to ask why the charged my account when they were aware the car was totaled and that i no longer needed the warranty insurance. At that time, I was informed by "John" a representative from Carchex that I would not be refunded for the $232.52 because I did not call them in time to cancel the coverage. I explained to him that the contract has me due on the 26th of the month I contacted them on August 9, 2024 which was 17 (seventeen) days prior to the next bill becoming due. John told me i would not be refunded and that I could add another car to the contract to make up the cost of the $232.52. I told him I would not be needing the insurance at all and that I had purchased a brand new car which comes with a warranty and did not need. John told me I would still not get a refund. I asked for Supervisor he said the supervisor would be able to help either. I asked for corporate number & email and was refused.

  

  Business response

  08/26/2024

  Thank you for bringing this to our attention.

  We are having trouble locating your account please email your contract number to ****@carchex.com. 

  Customer Relations. 

• Initial Complaint

  08/26/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I had a warranty with this company, which I paid for every month. In April I cancelled my policy due to being rear ended and my car being totaled. I contacted the company via email in April stating same. I received an email in return that they received the original email and cancelation and would contact me. They did not. Therefore, I called them within a week's time and spoke with a representative that acknowledged the cancelation on the phone. Months go by until approximately 3 weeks ago and I noticed that the $213 was debited from my account via my banking app. So, I went back over the previous months and lo and behold every month since the cancelation I have been debited. I immediately sent an email with the photos of debits and the previous emails asking for a resolution. That being no more debits from my account for a warranty for a vehicle that has not been on the road since April and a refund equaling the amount charged me since the confirmed cancelation. No reply. I call and speak with a representative again and after being placed on hold multiple times I am disconnected. In the meantime she did give me another email to contact with the information I had on the cancelation and subsequent charges. I receive only a confirmation that the email was received and then nothing. Until today I receive an email stating everything had been resolved. I check my bank statement today and they charged me yet again! So, noone has attempted phone contact and noone has personally acknowledged the events and my reimbursement and they continue to charge me. I am working with my bank on these issues, however this is such an egregious act on this companies part that I thought it necessary to contact your organization to file a formal complaint. Thank you

  

  Business response

  08/26/2024

  Thank you for bringing this to our attention. 

  Upon further review we did not locate the call of cancellation.

  Though in efforts to resolve this matter we will refund the 5 monthly payments.

  Please allow 7 to 10 business days to see the refund. 

   

  Customer Relations. 

  Customer response

  09/16/2024

  Thank you for the follow up message. The only update I have is that Carchex STILL has not refunded me any of the money that they have twice stated they were going to refund. It appears that this company has a gap in intra office communication and/or they are in the business of ripping people off with no concern for the public interest. If there is anything further you can assist me with to encourage them to do the right thing and refund my 5 months of payments beyond my cancellation that would be wonderful. Or if you have suggestions as to what I can do along with your efforts to do the same.

  Thank you as always for your attention and assistance.

  **** *****

  ************

  

  Business response

  09/16/2024

  We have voided and resent the check.

  We will issue you a new one today.

  As soon as the check has made it's way to us we will get this overnighted. 

  Customer Relations. 

• Initial Complaint

  08/07/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  In August of 2023, I contacted CarChex regarding a claim that has been denied and I felt based on the contract it should have been covered. I requested an escalation of this claim. I then spoke with a representative that was extremely rude to me as she explained that they would not be covering the claim. There was certainly more professional way to discuss this with a customer. I informed her that if the policy was not going to pay what it was intended to pay, then I didn't want it anymore and please cancel my policy. This was in August of 2023. In preparing for my taxes, I pulled my bank account statements today and noticed that I was still being charged monthly for the policy I requested to cancel last year. I called CarChex to have them review the cancelled policy and refund the unauthorized payments. I was told that they would cancel the policy however when I spoke with claims last year to request a cancellation, they should have sent me to customer service to formally cancel the policy. Unfortunately due to their employee not following proper protocol, I have been charged $1,439.88 after my requested cancellation date. I explained to the customer service supervisor, Jordan employee ID#******, that the customer should not be impacted by their employees mistake. As a customer I did my part, I called, I cancelled and they can confirm that the call did happen to their claim office. A customer would have no idea who has the authority to cancel or not to cancel, this would have been up to the their employee to properly handle the cancellation process. I am requesting a full refund of the charges that we taken from me without authorization. Jordan was very rude and patronizing during our call as well.

  

  Business response

  08/08/2024

  Thank you for bringing this to our attention.

  Upon further review we did not locate the alleged call in reference to cancelation. 

  We can not refund you for a year as there is no record of cancelation.

  Nevertheless, out of good faith Carchex will refund your last 6 monthly payments upon execution of a signed settlement release agreement. 

  If you wish to accept this offer please email [email protected] that you are in agreement so we may draft the agreement and email it to you for your electronic signature. 

  Customer Relations. 

   

• Initial Complaint

  08/07/2024

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Resolved

  More info

  I completed their website form looking for a quote. They immediately began calling me every half-hour or so until I picked up. I listened to the price quote that the sales agent gave me, and politely told him I'm not ready to commit to theirs or any related service, just gathering information. He did not accept no for an answer and started offering discounts, which kind of undermines their credibility because I expect an accurate quote, not something that is negotiable. I ended up having to hang up on him because I couldn't get him to accept my refusal and say goodbye. Then, they called back the next day as if I didn't make myself clear. And again today, three days after I first requested the quote. Plus they're sending me spam emails. Very hard sell, and if there were any chance I'd do business with them before, they have ruined it. Avoid if you don't want to be harassed.

  

  Business response

  08/08/2024

  Thank you for bringing this to our attention.

  We will take a look into this matter and handle internally as needed.

  We have placed you on our do not contact list.

  We are sorry to hear this was your experience.

   

  Customer Relations.

  Customer response

  08/09/2024

  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Sincerely,
  
  **** *******

• Initial Complaint

  08/06/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Paid amount 719.20 Date of transaction: 01/20/2024 I purchased warranty for a car repair for my Hyundai Elantra 2018. The company will not honor the full repair, only portion. It took them over 2 weeks to get back to me, meanwhile I had to pay for a car rental. Hyundai dealership requested to change the whole engine. The warranty company only offered to pay for portion of the repair regarding the head gasket. Which doesn’t fix the problem with the car. Their excuse for not upholding their part of the repair, is no where covered in the contract. In the beginning they called me, and agreed to change and pay for a new engine. A week later, they called back and changed their story. The manger said no and they would only be willing to pay for a portion of the repair. The dealership is in a disagreement on the request for the repair from the warranty department. The Hyundai dealership said they have never worked with a warranty company that only offered to pay a portion of the work. The warranty department offered 1,900 to work on car but only to fix the head gasket which is not repairable nor does it cover the labor. From June 7th 2024 till now 7/6/2024 I have Had to pay out of pocket for a rental car. I have all the documents to prove my out of pocket cost. The warranty department only offered to cover 7 days of rental car but that decision wasn’t even made clear until 3 weeks after my car was taken into the shop. I can provide all the documentation needed if necessary. My car is currently still at the dealership.

  

  Business response

  08/12/2024

  Thank you for bringing this to our attention. 

  Upon further review your claim has been adjudicated correctly per the terms of your contract.

  Your administrator has authorized $1,728.85 for your current claim.

  Carchex will void the claim authorization and refund you in full upon execution of a signed settlement release agreement. 

  Please let us know how you would like to proceed. 

  Customer Relations. 

• Initial Complaint

  08/01/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  Hi, I believe I spoke with either Jamal or his direct supervisor at the time when I called to inquire about cancelling our Carchex extended warranty for our Honda. My fiancé at the time was on the call with me. I asked if we would get a full refund since we had never used the coverage. I was told by the representative “I don’t see why you wouldn’t receive a full refund”. Based on that we cancelled our policy and only received about 1/2 the expected refund. I called to find out what happened and was told the refund we received was based on how long we had the policy even though it was never used. I said we only cancelled based on what we were told over the phone, & they said that is not how the contract works. I requested an investigation and requested they listen to the phone calls to see what we were told…they said they would listen to the phone call and get back to me. Over a month goes by of me checking in via email (no response) & leaving voicemails (no response). Turns out eventually I get through to someone and that person is no longer with the company. I requested the new person I’m talking to look into the phone call (Jerry, or J. E******) and he says he will & will get back to me in 24 hours. It’s been a month. When I email him (3 times) there is no response. When I call him number and ext. it goes to someone named Nick. I have no idea what going on over there but I’m not getting any help on my own. They just don’t respond. The total paid was almost $2,000 and I received around an $800 refund. I hope you can help, thank you so much. Policy number *********

  

  Business response

  08/08/2024

  Thank you for bringing this to our attention.

  Upon further review per the terms of your contract you are owed prorated refund which was refunded to you thus far. 

  Please see the below cancelation procedure per your contract.

  F. Refund Calculation:
  If this Policy is cancelled within the first sixty (60) days from the effective date
  and no Claims have been filed, We will refund the entire Policy charge paid. If
  this Policy is cancelled after the first sixty (60) days or a Claim has been filed,
  We will refund an amount of the Policy charge according to the pro-rata method
  reflecting the greater of the days in force or the miles driven based on the term of
  the plan selected and the date coverage begins, less a fifty dollar ($50.00)
  administrative fee. In the event of cancellation, the lienholder, if any, will be
  named on a cancellation refund check as their interest may appear.

  Therefore, you were refunded correctly per the terms of your contract. 

  We also have attached a copy of the contract for your records. 

  Customer Relations.

  

  Business response

  08/12/2024

  Though you have received the correct refund, Carchex will refund in full out of good faith.

  Please allow 5 to 7 business days to receive the difference.

  Carchex considers this matter closed. 

  Customer Relations. 

   

  Customer response

  08/17/2024

  Hi, we did receive the check from Carchex and we deposited it with no issues. We appreciate your help with this so very much. We were literally getting nowhere with Carchex directly and did not get this finally resolved until the Better Business Bureau stepped in. Thank you!!

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩