DON'T GET SCAMMED LIKE I DID!!!
On Feb 19th, 2015 I reached out to Good Sam to get information about an extended warranty for my 3 vehicles. My phone call was answered by Cory Hill and he explained to me how easy Good Sam was to work with and that in the event of any issues with my vehicle I would only need to take my car to the dealership of my choice and good sam would pay on the spot with no hassles. I asked him about a few different parts of my car to confirm coverage and he said it was all covered and directed me to this portion of their website: http://www.goodsamesp.com/whatiscovered.aspx (which mirrors the contract they mail to you).
After speaking with Cory for 45 minutes I told him I needed to think about it and a day later I called him back and confirmed everything with him regarding coverage and he assured me that I was in good hands and it was not “too good to be true” as their prices were significantly lower than other companies had quoted me. I ended up purchasing coverage for all three vehicles. My Mercedes ML350 for $604 per year, Mercedes SL500 for $855 per year and Escalade ESV for $561 per year which were to be invoiced quarterly with one quarter paid in advance. I paid the first quarters premium on my AmEx card and a week or so later I received a welcome package in the mail with all the coverage points outlined.
Fast forward to last week, my wife was driving our ML350 and the steering froze up and she nearly was in a car accident. We took the car to our dealership on Friday to have them look at it. Prior to doing so I had reached out to Good Sam to find out the procedure and I was told again how easy it was. They just needed a quote from my dealership and they would review and approve it. I told them I assumed it was the power steering pump which under section 5 of my contract states it is under coverage. I was told no problem, just have them call 888-861-8697 to make a claim.
My dealership looked at my vehicle and contacted Good Sam and they told them my repair (damaged Water Pump and Rack and Pinion) were not covered because I had neglected to purchase the Seals and Gaskets clause in their contract. My service advisor in turn called me and explained that he was told because the damage to the parts was caused by a leak that Good Sam would not cover it and my warranty I had purchased and paid for was worthless.
Shocked, I called Good Sam and was told that I was offered the Seals and Gaskets but declined it. I recall that part of the conversation, however as it was explained to me that coverage only applied to leaks and with my minimal understanding of cars and the sales person being eager to sell three contracts he did not explain to me the importance of this aspect of the contract. I confirmed with Cory several times that the main parts were covered; transmission, engine, shocks, steering column, etc and I was told “YES, 100%”, when the answer should have been “no, not if any damage is caused by a leak, which in 99% of the time is the case”. I spoke with Cory again and asked him why he didn’t explain it to me and why he mislead me and he was quick to get me off of the phone and said he would review the recorded sales call and get back to me.
A couple hours later I received a call from his Manager who identified himself as Shawn Ash and he told me that he had reviewed the tapes and that Cory did in fact notify me about the seals and gaskets clause and that “I was more concerned about the major stuff” therefore there was nothing that could be done for me. I asked him to show me where in the contract it states that by not purchasing the seals and gaskets coverage it negates all other. He referred me to section 11 of my contract that states ‘Extend seals and gaskets coverage to units with less than 150,000 miles (odometer reading) AND 18 model years old or less when the claim is filed.” I asked him how that negates it and he said it does. I asked why that wasn’t explained in full and he wouldn’t answer me. I requested that he refund my money I have paid to them in full as clearly I was taken advantage of, he said they would not. He did however agree to refund my payments that were drawn last week, but not the $505 I paid on Feb 19th when I thought I had coverage when in fact I really didn’t.
Shawn was short and rude on the phone and basically told me tough luck and offered no apology or resolution which tells me this is a very common call that he makes. He threw in my face that I declined the optional coverage and he had a recording of me doing so as the call was recorded (but would not send me the audio of the call). Clearly they record their calls for this specific reason, it is clear to me that they are predators and I am sure I am not the only one that his had a similar experience with them. I had also asked him what the warranty as I purchased covered and he would not answer that saying he doesn’t talk about hypotheticals; which is funny because he is selling insurance and without hypotheticals there is no need for insurance. Clearly their sales approach and verbiage is by design to “catch” people and make larger margins without having to pay the repairs. If I were you, I would stay away from this company.
GOOD SAM EXTENDED WARRANTY SERVICE SCAM
DON'T GET SCAMMED LIKE I DID!!!
Here are links to report similar experiences:
Better Business Bureau
http://www.bbb.org/santa-barbara/business-reviews/road-service-automotive/good-sam-enterprises-llc-in-englewood-co-10000529Type your paragraph here.
Colorado Attorney General
http://www.stopfraudcolorado.gov/about-consumer-protection/complaint-forms/consumer-complaint-formType your paragraph here.
California Attorney General
https://oag.ca.gov/contact/consumer-complaint-against-business-or-companyType your paragraph here.
Federal Trade Commission
https://www.ftccomplaintassistant.gov/GettingStarted?NextQID=251&Url=%23%26panel1-2#crntType your paragraph here.Type your paragraph here.