Third Party Warranty Fraud

We receive a number of complaint about warranty companies.  They offer to provide the comfort of covering repair costs but consumers are frequently enmeshed in problems and disputes, as they ask for expensive diagnosis before undertaking repair, suggest junkyard parts instead of new ones, pay for only partial costs, delay, and contradict the promises in their brochures.  

Edmunds writes,

"Third-party extended-warranty companies promise to offer peace of mind in the event that your vehicle breaks down. But all too often, their shady practices scam people out of their money instead of giving them real coverage when they need it. Not every extended auto warranty company is out to rip you off, but over the course of our research, we found that the honest ones are few and far between.

What Is a Third-Party Auto Warranty?
A third-party warranty is so named because it has no direct business relationship with the product it covers. In this case, that's your car. These warranties differ vastly from manufacturer extended warranties, which use original parts and factory-trained technicians to repair your vehicle at a dealership.  Third-party warranty companies may give you the option to take your car into the dealership, but the reimbursement process can be a hassle if a company doesn't want to cover a part."