BBB warns consumers about auto warranty company
Auto Warranty Agency received F rating from the BBB
The Better Business Bureau of Greater Maryland is warning consumers about a Maryland-based auto warranty company that they said is doing bad business with customers' money.
The BBB has given the Auto Warranty Agency an F rating and officials said they're dealing with a lot of frustrated customers.
Connie Mitchell knew she would eventually need work done on the used Mercedes that had 60,000 miles on it when she bought it last year. That is what led her to the Auto Warranty Agency, which was advertising extended car service contracts.
Mitchell said that she paid nearly $4,000 for the contract and got a receipt confirming the company received her money.
But when it came time to need car service, Mitchell said she ran into problems.
“They said, ‘Ms. Mitchell, you don't have a contract with us,’” Mitchell said. “I said, ‘Yes I do.’ I emailed everything and they said, ‘I'm sorry, we never received your money.’”
Mitchell’s situation apparently isn't unique. Officials with the BBB of Greater Maryland said they have received nearly two dozen complaints about the company from customers who say they paid thousands of dollars for service contracts.
“They are either being declined service when their vehicle needs service, not receiving their paperwork in the mail or they've been told that there's a provision for cancellation,” Jodi Thomas with the BBB of Greater Maryland said. “They try to cancel and they don't receive a refund. There are calls and emails to the company that go unanswered.”
BBB officials said that Auto Warranty Agency, which is based in Salisbury, hasn't responded to them either. The company did not return calls seeking comment.
After nearly six months, Mitchell said that she finally got her money back after she sought help from a state representative.
“They should be fined and then put out of business,” Mitchell said. "They really need to. That was all the money that I had, spare money anyway. God forbid something really happened to my car and I couldn't afford to get it repaired.”
Mitchell said that she was told that the administrator of her coverage was Alpha Warranty Services. Calls to that company seeking comment were not returned.