Complaints

This profile includes complaints for Elite Warranty, Inc.'s headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Elite Warranty, Inc.

  Mapleton, UT 84664-5012

  
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  Elite Warranty, Inc.

  PO Box 404 Springville, UT 84663-0404

  

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:05/30/2024

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On May 22, 2022, I purchased a vehicle with this gap insurance attached. On 12/30/2023, the car was totalled in an MVA. Now that I've completed the claim withinsurance and have submitted all the needed documents, Elite Warranty says they will not honor the agreement because they state that because the loan amount was 173% above the car's worth and because they say they will only pay if it's 130% above the car's value. But on the date of sale, the loan was 155% above the car's value. So Elite Warranty entered into the contract under false pretenses with NO INTENTION of honoring the contract. There was approximately $3800 still due on the car note at the time when all the needed paperwork was submitted. I am still making payments on this car note when this should have been payed off by Elite Warranty. I would like the full amount payed off from the date the contract should have been honored.

  

  Business Response

  Date: 05/30/2024

  Thank you for the opportunity to respond to this complaint. MS ******** is incorrect in the numbers and percentages she is stating in her complaint. When the vehicle was purchased, 5/11/2022, the total amount of the loan was $21,225.22, financed for 71 months with payments of  $341.24. At the time of purchase, the vehicle was financed at 133% of value. At the date of loss, the balance still owed was $15,904.31. The JD Power clean retail value at the date of loss was $9,150.00. Balance $15,904.31 divided by JD Power clean retail value $9,150.00 = 173.8% over value. If you take the JD Value of $9,150.00 x GAP Maximum liability 130% = $11,895.00 maximum GAP liability. Date of loss balance $15,904.31 - maximum GAP liability $11,895.00 = $4,009.31 excess financing. Date of Loss balance $15,904.31 - Insurance ACV settlement $11,448.48 - excess financing $4,009.31 - VSC cancellation refund $502.63 = $15,960.42 Total Deductions, leaving a negative balance of ($56.11). Thus, no GAP Buyout Payment (please note the attached supporting documentation).

  As stated in MS ********'s GAP Addendum agreement on Page 1, "Although not required to do so, you have elected to participate in our GAP program. GAP coverage may not cancel or waive the entire amount owing at time of loss." The addendum also states. "You also acknowledge that you have read and understand this GAP Addendum and its provisions." Also stated, "You should carefully read the back of this GAP Addendum for additional information on eligibility, requirements, conditions and exclusions that could prevent you from receiving benefits under this GAP Addendum." (see attached, signed GAP Addendum).

  On Page 2 of the Addendum under "LIMITATIONS" under B, it states, "B. Notwithstanding the GAP Benefit amount and the maximum potential benefit, no coverage is provided for the portion of the net payoff that exceeds the maximum eligibility limit." Continuing on Page 2 under "DEFINITIONS:" Maximum Eligibility Limit is defined as "The Manufacture's Suggested Retail Price (MSRP) for new vehicles or the NADA (JD Power) retail value for used vehicles multiplied by the Maximum Eligibility Limit percentage of 130% but not greater than $100,000."

  MS ******** signed the agreement accepting the terms and conditions.

  Customer Answer

  Date: 05/30/2024

  
  Complaint: ********
  
  I am rejecting this response because:
  Nothing has been done to resolve the situation. Elite Warranty needs to honor their part of our contract for me to be satisfied. 
  Sincerely,
  
  ******** ********

  

  Business Response

  Date: 05/31/2024

  I am sorry the customer feels that Elite is not honoring the contract, but that is exactly what Elite Warranty is doing. Elite is abiding by the terms and conditions of the contract MS ******** purchased and agreed to. The vehicle was over financed at time of loss due to devaluation of $6,729 over the 19 months following the purchase. There is simply no GAP Buyout available per the contract.

  Elite has already explained this many times and many ways to MS ********. Elite has also informed her that she can cancel the GAP Addendum for a pro rata refund to apply to the remaining balance of the loan. The pro rata refund is $600.84 (see attached quote). That is all Elite Warranty can do for this situation.

  Customer Answer

  Date: 05/31/2024

  
  Complaint: ********
  
  I am rejecting this response because: What Elite is choosing to ignore is kelly blue book value of the car vs the amount of the loan at the time the contract was entered into the by myself and Elite. As stated in the submitted documents, the loan was 
  24,569.28 vs the car's KBB value at the time of purchase was 15,879.00. That's 154%. If this violated Elite Warranty's terms, they should have said so then and cancelled the contract immediately with a FULL REFUND. To offer a prorated refund when none of the contract has been honored is insulting. 
  Sincerely,
  
  ******** ********

  

  Business Response

  Date: 06/03/2024

  I am sorry but MS ******** is incorrect. The amount financed at time of purchase was $21,225.22 NOT $24,569.28 (see attached finance contract). The $24,569.28 is the total amount with interest over the 71 months finance term. So the amount at the time of finance is 133%. The problem is the vehicle is 14 years old and has dropped in value since purchasing more that $6,000. Financed over a long term with small monthly payments has mostly been paying interest and not paying down the principle much.

  If MS ******** feels that she should get a full refund for what she paid for the GAP Addendum, Elite will send the full refund of $895 (purchase price) to the Lienholder to apply to the loan balance. Contractually, that is more than she is entitled to, but Elite Warranty will go ahead and do a full refund. MS ******** will need to fill out the cancellation request form (also attached) so we can process it.

  Customer Answer

  Date: 06/04/2024

  
  Complaint: ********
  
  I am rejecting this response because: I wanted fully respond to that last offer. Elite has stated several times that 130% is their limit to the loan to value ratio.  But as they just stated 133% was the founding term of the initial contract, which means they violated their own terms when this contract was initiated.

  However, I am willing to accepted Elite's offer to refund the entire fee because at least they are not getting paid for not providing a service. 

  I ACCEPT THE RESPONSE. 

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

  

  Business Response

  Date: 06/05/2024

  Again, it was MS ******** who accepted the terms of the GAP Addendum even though the initial loan to value was 133% and the GAP Addendum clearly states the maximum liability is 130%. The GAP Addendum states right above her signature, "Although not required to do so, you have elected to participate in our GAP program. GAP coverage may not cancel or waive the entire amount owing at the time of loss."

  At the time of purchase, Elite Warranty has no idea or control over what MS ********'s intentions were. She may have planned to make extra or larger payments to bring the loan to value ratio down or she may have planned to refinance. In any event, Elite Warranty has no control or responsibility over this.

  Elite Warranty accepts MS ********'s request to cancel the GAP Addendum for a full refund of the entire fee. Elite will process the cancellation and send the full refund of the entire fee ($895.00) to her Lienholder, Safe Credit Union promptly, once she has completed the GAP Cancellation Request form and sends it to Elite Warranty. She has been sent the GAP Cancellation Request form at least twice. If she cannot locate the form, she just needs to contact Elite Warranty and we will send it to her again. I have again attached the GAP Cancellation Request form for her to this response.

  Customer Answer

  Date: 06/09/2024

  
  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. I would still like my experience noted as a complaint for public record. This entire experience has left me  dissatisfied overall. 
  
  Sincerely,
  
  ******** ********