The Exotic Warranty Company

Hi everyone.

Apologies for the long post, but I believe this is directly relevant to members of this community, and I’d like to relay the experience I’ve had with a company called The Exotic Warranty Company over the past year. I have been extremely patient and overly-forgiving, have exchanged several messages with the company’s owner, and it is only now, in utter frustration, that I’m making a public post.

I now believe very strongly that The Exotic Warranty Company is an entirely fraudulent operation and is operating in violation of the law. I strongly suggest that any fchatters who are considering purchasing a warranty from them stop doing so immediately, and any of you who have already purchased a warranty from them (and who have not made a claim) contact an attorney and/or your credit card company to seek reimbursement. If any of you have a warranty from them and have received payment for a claim, I’d love to hear about it.

The company has exhibited a pattern of deceit, lies, and changed stories over the past year, culminating in the same result: total non-action and non-payment of approved claims. It is for this reason, and because of this pattern of behavior that I have observed, that I believe it is a fraudulent operation.

Unfortunately, this company is owned and operated by one of our own (Ben Evans – "bentasm" here on fchat), and it saddens me to discover that an fchatter is behind this operation, but unfortunately bad business knows no bounds.

The short version: I purchased a warranty from them for my 360 Modena, and informed the company upon purchase that the vehicle would be used as a rental. Over the past year, I’ve made several warranty claims, most of which have been “approved”, none of which have been paid as of this date. Each time I call them, they either tell me a check is in the mail (none ever arrives) or come up with an excuse as to why a check isn’t in the mail. They change their story with every phone call. This has been going on for months, no checks have ever arrived, and I can only come to the conclusion that there will be no end to this cycle and that the company is simply perpetuating a large-scale fraud. They’ve managed to fool me for a year, and it’s going to end now.

Here’s the story, in more detail:

I purchased a 1-year warranty for my 360 Modena in April, 2004 for $2950. I explained to them that my vehicle would be used as a rental, and asked if there were any such restrictions, and was told that there were absolutely no use or mileage restrictions, and I was free to rent my car and would receive full warranty coverage. They sent me a sample warranty contract. Nothing out of the ordinary, no usage restrictions, coverage of all components listed. Seemed simple enough.

First problem happens at the end of April. Nothing serious, just a blown F1 fuse, but I didn’t know my right cylinder from my left gasket at that time, so I filed a warranty claim for the labor. Declined, as fuses aren’t covered under warranty (duh – my bad). No problem.

Memorial Day rolls around – end of May 2004. F1 fuse was actually indication of a bigger problem, and the whole F1 pump + TCU (tranny computer) needed to be replaced. Filed a warranty claim – F1 pump denied because it wasn’t listed as a covered component (a problem with inclusionary contracts – if it ain’t specifically listed, it ain’t covered. But you live and learn with that one). TCU, however, is listed as a covered component, and the company tells Classic Coach they will cut them a check directly for the ~$1400. Seems simple enough.

Weeks go by. No check arrives. I call for status, and speak to Cheryl in the claims department. “We sent a check weeks ago.” I explain nothing has arrived, they agree to issue stop payment and re-send.

More weeks go by. Still no check. I call for status again. Cheryl says: “We sent a replacement check. You didn’t get it?” No. They agree to look into it and send a third check.

More weeks go by. Now, rightfully, Classic Coach is annoyed at me and asks me to pay the ~$1400 directly. I do. I call the warranty company for status. NOW the story changes:

Cheryl tells me: “The claim is being denied due to your first claim of the blown fuse. We feel the blown fuse adversely affected the F1 pump and voided your warranty. But we’ll offer to pay half.”

????????? I couldn’t believe that. First off, she essentially admitted that they never sent any checks, so they’d been lying to me. Second off, as any of you know, a blown fuse is a symptom of the problem, not a source of it. Third off, since when is warranty coverage a negotiation? Pay half? What kind of warranty is that? I explained that it was entirely unacceptable and that they’d better live up to their commitment and send the full amount. Cheryl agreed to get back to me. No word.

Next: August 2004 rolls around. My exhaust manifolds spring a leak. I file a warranty claim. Denied – exhaust manifolds are not covered. I could have sworn I saw they were, so I checked the contract. This is the EXACT text:

“Covered Components: Engine – Cylinder block, heads, and all lubricated internal engine parts; manifolds; timing gears, …” (etc.)

Last time I checked, there were two kinds of manifolds on an engine -- intake and exhaust. The contract says manifolds -- plural. That means all manifolds are included. Their response: “No, we meant intake manifold. Exhaust manifold isn’t covered. We changed our newer contracts to reflect that.”

Oh…we MEANT intake manifold. Well maybe if they meant something it should have been in the signed contract I had. Unfortunately contract law doesn’t really account for “we meant” and going and changing other contracts doesn’t do a thing about the ones you’ve already signed. I called and again spoke to Cheryl. What happened then was one of the strangest conversations I’ve ever had:

Cheryl: <whispers> “Listen, I can’t say much here. But read your contract.”

Me: What about it?

Cheryl: “The 2nd to last paragraph”

Me: Where it talks about the dispute policy?

Cheryl: <whispering again> “Yes. Yes. I can’t talk. Just read that and follow it. I can’t say any more here. They're listening to me.”

The 2nd-to-last paragraph talks about the policy and procedure for filing an official dispute. I decided, perhaps to my detriment, that something fishy was going on and to instead try to just get the manifolds repaired. I got the manifold patched on my own dime (TIG welded), and moved on with life.

Next: End of October 2004. Starter motor dies. Repair shop files a warranty claim (again, still having not received payment for either the manifolds or the TCU). Exotic Warranty Company approves claim. Weeks go by – no check received. Sound familiar?

Once again, I call them to find out where the check is. Cheryl tells me “oh, we didn’t know who to send it to. Please give us your address and we’ll send all the checks.” I do. No check ever arrives.

Which brings us to March 2004 - 4 months later - I call again to see where everything stands. What does Cheryl tell me?

“Sorry, your vehicle is a rental. We don’t provide any coverage for rental cars. Only private automobiles. All coverage has been denied.”

I blew a gasket. I can’t emphasize enough how much it takes to make me get really angry, and this did it. I asked her how she could give me a different answer with a straight face every time we spoke. She assured me she’d get back to me by the end of the day with some type of resolution. She called back at 4:00pm and said, “Yeah sorry, we’re not providing any coverage because it’s a rental.” I asked for her to tell me where in the contract it said that rentals were void.

She told me that it didn’t say that anywhere.

I asked her why they sold me the warranty in the first place when I told them specifically and multiple times it was a rental and they assured me there would be no problem. Heck the contract is made out in the NAME OF THE RENTAL COMPANY for heaven’s sake!

She had no response. She began to whisper in the same way that she did back when we were talking about the manifolds. I didn’t want to hear it.

I emailed the company’s owner (Ben Evans) and told him that they had two options: They could pay the outstanding claims immediately, or they could refund my $2950 for the contract, which they now claim to have sold me improperly, apparantly. I said I’d need an answer by the end of day. Once again, I’ve been overly patient, and it's now nearly 2 MONTHS later, and I've still heard nothing. That was the last straw. I really think I’ve been more than patient here.

I will be filing a fraud claim the Attorney General’s offices in Florida and Alabama (where they have offices.) Then I’m going to sue them. I am not a litigious or even inflammatory person by nature, as my friends and associates will tell you, but this is just outright insulting.

I will keep everyone here posted. Thanks for listening to me vent.

And stay far, far away from The Exotic Warranty Company. Ben Evans, shame on you.

 

Sorry to hear about all of the issues, hopefully you are able to solve it out of court without many hours and dollars in lawyer fees.

On a side note, is it common to experience this many problems with the 360??

 

Woah Noah, sorry to hear of all your troubles. I know that you are an upstanding member of this community and so is Ben Evans.

I will certainly be tuned in to see how this unfolds, as they say there is 3 sides to every story.

I do appreciate you taking the time and post and letting us know. I do hope you recover your $, or Ben has some damn good explanations for all this.

 

I'm sure it feels good to get that off your chest ,alot of people here will appreciate you taking the time to inform us. It seems that almost every time we pay for some kind of service we get ripped off. I feel that frustration almost daily. We can no longer take for granted that what is expected will be done, from the smallest task to corporate America, it's becoming a fight. You are getting ripped off and I wish you the best in your suit for justices, good luck.


bob

 

That's unfortunate to have your chain yanked like that. What I find strange is these guys carry a BBB seal on their site and if you google them there isn't one person bich'n about them. Not doubting your story but with this kind of business dealing how are they able to cover their tracks? What does BBB have to say about them?

 

Wow..not cool at all. I have deal with aftermarket warrenty compaines before..and things like this do happen. You would be surprized at how offten this stuff goes on. We have pulled our hair out dealing with some of these companies. Lubraco Warrenty being one of the worst.

I really hope you can get this sorted out. Reading your post has brought back a few memories of battles I have fought with these companies. Doing what you are doing is perfectly understandable and justified. Once you threaten a warrenty company with legal action, they will usually pay up quickly, as many of the contracts can be picked apart by a competent lawyer, and many times the company will recive further prosicution.

 

Wow! Thanks for sharing this with us Noah. Sorry to hear about what you've gone through. Just before I bought my 6.0 I discussed getting a warranty with Ben from his company. All seemed okay, but I didn't follow up on it only because I've never heard a positive thing about aftermarket warranty companies. Ben's company certainly seemed like the best option, but I still didn't even want to explore it.

I hope everything works out for you and please do keep us posted.

 

Wow Noah, I had no idea about this.

I hope they lose in court or make a (nice) settlement with you.

Were all these conversations with Cheryl and the company in general done on the phone? Do you have anything confirmed in writing? I hope so.

I've learned that, especially when dealing with warranty people and banks, everything needs to be done by fax. It's a good practice in general, as I'm sure you know.

I once had my name put on ChexSystems by a bank ERRONEOUSLY. ChexSystems is the blacklist that prevents you from doing anything financially-related because it is a declaration that you are not at all credit-worthy.

I cannot tell you how similar that story is to the one you just posted. I talked and talked with them to get it resolved; and the lies, deception, and inaction amazed me just the same.

 

I hope Ben responds, and it's more than a tit for tat denial of your allegations. I also have a warranty on my Lambo thru his company, but opted for only one year, with the ability to re-up, rather than buying a long term warranty at the outset. Obviously, if something fishy or worse is going on here, that will affect Ben's relationship with dealers, consumers and his presence on this and other boards. But, i for one will wait to hear his side until i make judgement. Not to say i don't believe you or feel your pain....

 

Sounds like a typical insurance company. I guess I am used to hearing this BS from them after 10 years. Imagine having to deal with this weekly like me. They ALL lie - do not even get me started with THOUSANDS of examples. Good luck. I hope things work out for you.

 

Thanks for the support guys. Frankly, *I* would like to hear his side of the story as much as you all would! I'll be the first one to change my feelings about this situation if they offer a reasonable explanation and/or settlement -- I'm not trying to turn this into a witch hunt, but as I'm sure you can gather, I'm doing this out of pure and utter frustration -- they just keep ignoring me, and it's gotta stop.

Ben? Care to respond?

 

From a one sided post with no documentation or facts :These responses to the post amaze me!

Why don't you all just take him (ben) around back and shoot him?

"You are getting ripped off and I wish you the best in your suit for justices, good luck."
bobf430

"Sounds like a typical insurance company.....They ALL lie"
Dr T.Cosgrove.

"I hope they lose in court or make a (nice) settlement with you." 344sstb

To those that showed restraint and common sense and think there may be more to the post then meets the monitor you deserve praise.

The poster has indicated that he will be taking legal action so I would advise all parties to save it for the courtroom, FC is not the appropriate forum to settle this issue. I for one believe that noah has entered into the legal world of defamation in making his post before he even took advantage of the complaint process afforded him. See his direct quote below:

"The 2nd-to-last paragraph talks about the policy and procedure for filing an official dispute. I decided, perhaps to my detriment, that something fishy was going on and to instead try to just get the manifolds repaired. I got the manifold patched on my own dime (TIG welded), and moved on with life." (by noah)




By the way there are people in this world who also happen to try and rip off Insuarance Companies by filing fraudlent claims as well (not implying that this is that type of case).

It is a witch hunt from the very 1st post!

Paul

Full disclosure:
PS. I know Ben Evans and consider him a friend as well as having a professional relationship with him. I have found him to be honest and straight forward at all times. I have no knowledge of this complaint other then what I read here.
I do not have any involvement in his companies Ins. policy or claims handling.

 

What does that paragraph say?

You imply you haven't followed that procedure for any of your disputes - why?

 

I am also waiting for the response. Some of your accusations sound very damning.


Legal notes, if what you say is true:

First, the "what we meant" stuff is rubbish. You are not contracting with the mental belief of the insurer but with the reasonable interpretation of the words on the page. The private, unexpressed beliefs and stipulations of the other party are irrelevant. Additionally, the fact that they supposedly changed the contract to explicitly incorporate this stipulation that they "meant" is pretty strong evidence that even they felt it should be expressed on the page rather than held privately in their own minds.

Second, and along the same lines, under this objective theory of interpretation, they obviously cannot add further stipulations that aren't in the original contract, such as no rental cars being covered. That is ridiculous. Moreover, even IF somehow they are able to prove that a contract that places no restrictions on rental vehicles somehow places a restriction on rental vehicles, the fact that you were assured all along that you would be insured by them makes for an ideal claim of reliance, which would make the contract enforceable anyway. You reasonably relied on the belief that you would be covered, and, as a consequence, did not seek insurance elsewhere. They therefore must perform the contract becasue you reasonably relied on it.

Third, if they send you any check less than what they owe you, do not cash it as long as the dispute is ongoing.


The above is in the hypothetical, of course, awaiting The Exotic Warranty Company's response.

 

"In the event of a dispute, within 10 days holder will submit claim dispute form. Provider will review form and each party will assign an adjuster to review the claim. A disinterested umpire will review each parties [sic] findings and issue a final binding decision within 15 days."

I didn't follow the procedure for several reasons. 1. I requested a "claim dispute form" from Cheryl and never received one, and 2. I had no reason to believe that they would be willing to follow this vague procedure any better than they'd be willing to handle my claim.

I tried to resolve the situation with Ben directly, which is a much preferrable way of doing business in my book, and by the time that failed, 10 days had come and gone.

--Noah

 

Just to add some credibility to noahlh's story, i too have had negative experiences with this company. I would never use them again.

 

IMO this is the proper forum for these matters to be brought to light. As we have seen before both sides do get presented and people can decide for themselves.

As for:" I for one believe that noah has entered into the legal world of defamation in making his post before he even took advantage of the complaint process afforded him."

I might point you to the document that is hanging in DC. under the Argon gas.
Note #1. under amendments. I note no prohibition against stating what one has reasonable belief to be true before taking advantage of any complaint process.

 

This is a sad response to Noah's defaming post here on FerrariChat. Many here are customers, many here love my company, and many here have had claims approved and paid. I do not tout my services on FerrariChat nor do I post here for those reasons, I primarily hang out in the Lamborghini section as that's the marque I own. In otherwords, I'm not a troll, I'm a participant that also is "in the business".

Noah's post is full of misinformation and defaming remarks. One part I love the most is where Noah spoke with one of our claims reps Cheryl many months before she was even hired to the company. I love how Noah quoted Cheryl word for word when we didnt know who she was as she was hired in August 2004. Or the part where he says he disclosed that this is a rental car to us, which he did not. How about the claims you tried to slip through that were problems found on your inspection such as the cam seals and whatnot. The TCU problem you had immediatley when you purchased the contract and while it was part of a bigger problem, the bigger problem to us is that it is a pre-existing condition. You said it yourself when the problem occured. We do not pay claims on problems your car already has -- No service contract does.

How are you quoting our claims staff so specifically before they were hired and even after they were hired without a telephone recorder?

On this nonsense of my company stringing you along for a claim we clearly denied is nonsense as well.

Our contracts are extremely clear and to the letter. If you had a problem with a claim, there is a legally binding dispute procedure that allows a neutral party to determine if it is your liability or ours. This was implemented from day one to avoid problems like this. Why didn't you ever use this dispute procedure if you claim to have had these problems?

I think a post here has opened yourself up to litigation, and has defamed myself and my company for no wrongdoing. I sincerely hope you consider removal of this thread in its entirety and sue us as you claim you are going to. We can then let the folks here read the court documents as they see fit as both sides will have their story to tell.

Sincerely,

-Ben Evans
CEO

 

Seems like an FU response to me...

Where's the popcorn.

 

Insurance is one business thats easy to make alot of money never pay a claim or maybe a few token ones then close shop and Chapter 7 the corporation and run with the money and do it over again to the next victims.

I like the check is in the mail part, next time they try this crap ask for the check number and bank its drawn on and call the bank.

Exotic car warrantys post dances around the issues and cries poor me.

 

Ben
Noah stated:
"I asked her why they sold me the warranty in the first place when I told them specifically and multiple times it was a rental and they assured me there would be no problem. Heck the contract is made out in the NAME OF THE RENTAL COMPANY for heaven’s sake! "




He also stated:
"“Sorry, your vehicle is a rental. We don’t provide any coverage for rental cars. Only private automobiles. All coverage has been denied.”

Are Noah's statements untrue?

 

Thats horrible. Great way to respond, instead of settling reasonably. rolls eyes

 

"Our contracts are extremely clear and to the letter."

Does it say anywhere in the contract that the car cannot be used as a rental?

 

My contract was 1 page, but that which applied to exotics was 1 paragraph as I recall. The contact left a lot to interpretation, and the interpretation in my case was not in my favor.

 

Ben:

"many here love my company, and many here have had claims approved and paid."

Hmm...anyone here care to speak out about how they've had a claim paid?

Ken