# Beware of Boat Warranty



## SunSet Bass (Sep 9, 2009)

In April 2005 I bought a Nitro From D and R Sports in K-zoo. While signing the papers the sales man asked if I would like a warranty for my boat, I asked well how much. He continued to tell me that for $950 I could have my engine warranty for 5 years. I told him I would have to think about it...... He replied well if you don't end up using the warranty after 5 years you will receive your $950 back. Well with that said there was really nothing to think about............
April 2010, after five years of sitting on my warranty I call Pro-Guard the warranty company to find out how I get my $950 back. The phone rang once then I got an answering machine that said Pro-Guard is no longer in business and just to let you know if you are calling about your warranty refund you are not going to get it. This is the point where I got PISSED.
I call the apparent warranty company that supposedly took over all of Pro-Guards clients....... No not the answer, the warranty nor the refund is backed by the new company.
So not only was the warranty for my boat a joke so was the refund scam.
What do I do? Do I call D and R and talk to Randy? Who do I call? Is it worth my time and money to go to court over this? IDK 
Hope no one else has a warranty from Pro-Guard!!
HELPPPPPPPP:sad::rant::rant::rant::evilsmile


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## JJ Mac (Dec 29, 2003)

You said the warranty is just for engine, correct? What is the manufacturer?

It sounds like this warranty company is now bankrupt, or at least they are on the books. I pulled this quote from a response from another warranty claim and sounds like your situation:

"If you can find out who the bankruptcy judge is, you can attempt to make a claim against this. But honestly, it is a long shot. He will tie you up in red tape and will probably fail to even acknowledge, much less ever pay, any claims you might have.

This is one of several reasons why I am against extended warranties. (1) A "lifetime" warranty only "lives" as long as the company granting it does, and (2) For the most part, it is pure profit for the company. Even consumer advocates like Consumer Reports suggest you fore go them and just do your research and be sure you buy quality products from quality vendors."

Sometimes a new warranty company will take over, but they may or may not honor old policies.

This is in no way D and R's fault or responsibility I would say.........Get your money back at the end of the coverage...that sounds too good to be true, guess it was. Guess this is a good lesson for all to learn when it comes to purchasing extended warranties. Research the insurance company, before buying!

It sounds like you had no issues or warranty repairs that needed to be done for the time of coverage. In the end, at least you got a good running dependable engine. That counts for a lot, believe me.


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## SunSet Bass (Sep 9, 2009)

Merc. but the warranty was third party though D and R


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## sea nympho (Aug 7, 2006)

Extended warranties are almost always a bad idea.


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## OH-YEAH!!! (Jun 18, 2009)

You can try and make a police report. If the dealer knew that the company was illegitimate or if the dealer was an owner in the company and knew it was underfunded to pay claims, there would be criminal fraud.

The police may know about the place and may be able to give you insight. When one of my clients was taken for $1,000 for a deposit on a motorcycle by a shop that went out of business, the police knew all about the shady motorcycle dealer. He sued to get his money back.

You can also find out who the owner of the warranty company was and try and sue them personally. 

It sounds like it was basically just a Ponzi type scheme. Nobody can run an insurance company and then refund the premium at the end of 5 years and still stay in business.

Wish I had better new for you.


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## jlcrss (May 17, 2006)

OH-YEAH!!! said:


> You can try and make a police report. If the dealer knew that the company was illegitimate or if the dealer was an owner in the company and knew it was underfunded to pay claims, there would be criminal fraud.
> 
> The police may know about the place and may be able to give you insight. When one of my clients was taken for $1,000 for a deposit on a motorcycle by a shop that went out of business, the police knew all about the shady motorcycle dealer. He sued to get his money back.
> 
> ...


This doesn't even come close to a police matter. Strictly civil.


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## Shoeman (Aug 26, 2000)

SunSet Bass said:


> Merc. but the warranty was third party though D and R


And seeing they "pushed it"....


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## atlrus (Mar 23, 2010)

OH-YEAH!!! said:


> It sounds like it was basically just a Ponzi type scheme. Nobody can run an insurance company and then refund the premium at the end of 5 years and still stay in business.


Exactly - insurance companies make money from people who do not use the insurance, so refunding the money after 5 years would make 0 sense and I am sure if you had a bit of time to think about it - you would've known it was too good to be true. But with the excitement of a new boat and what not, people don't have time to really think about it.

The problem is that D & R knew all about it, but because of the kickbacks they get on such warranties decided to push them instead of taking care of the customer. That's just a bad dealership and I am sorry you bought a boat from them.

Unfortunatelly you are a very very long shot taking the out-of-business company to court over such a small amount. Check to see if there is a class action lawsuit against them, but likely not, if you haven't received any notice.

I would personally love to see a lawsuit against D & R, since they knowingly pushed fraudulent product. It's hard to prove from legal prospective, but a good lawyer will take them to the cleaners and run them out of business, where they belong in the first place!


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## ESOX (Nov 20, 2000)

Send this link to Mike Cox.
http://www.attorneygeneral.gov/press.aspx?id=3893


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## William H Bonney (Jan 14, 2003)

That really sucks,,, and I hate to be the bearer of bad news but,, you're screwed. Chalk it up to "lesson learned" and be thankful you have a good runnin' boat. 

I deal with 3rd party warranty companies all the time,, actually worked for one years ago (that went outta business). 

Some warranty companies are scams, most are not. I can all but guarantee that D&R wouldn't jump in bed with a shady company. Hard economic times hit everyone and companies go outta business, it's really that simple. 

Had it happen to me last year,, had a $3000 settlement coming to me and the company went BK....  I'm pretty sure you've heard of 'em,, General Motors.....


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## jackbob42 (Nov 12, 2003)

Seems I hear about these extended warranties on the news all the time.
All they ever seem to say is that they are all a big waste of money.
I don't think I've ever heard anything good about them.


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## SunSet Bass (Sep 9, 2009)

Thanks for the replies, I know I got SCREWED.
Personal I love D and R Sports they have hook me up many times on many different things. 
I figured yeah it does sound to good to be true, but the man who was selling me the boat (Randy) has been in business for a long time, and is well known for being a class act. Why wouldn't I trust them when they tell me this is a good deal??????
D and R Sports may not be the ones to blame, but don't you think a call or a letter would have been the right thing to do when they realized the warranty they have been selling is a joke.
I guess I learned my lesson, but I still think I am going to call Randy Van Dam and tell him how I feel.


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## jackbob42 (Nov 12, 2003)

SunSet Bass said:


> I guess I learned my lesson, but I still think I am going to call Randy Van Dam and tell him how I feel.


I would do that for sure.


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## jlcrss (May 17, 2006)

OH-YEAH!!! said:


> There's clearly criminal fraud. The warranty company sold those policies knowing it would never honor the terms and the corporate owners may be criminally responsible.
> 
> Also, if the boat dealer was getting kick backs knowing that the policies were garbage they could be accomplices in the fraud.



And just how do you intend on proving intent. Without intent its civil.


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## Ruger-44 (Apr 2, 2009)

OH-YEAH!!! said:


> There's clearly criminal fraud. The warranty company sold those policies knowing it would never honor the terms and the corporate owners may be criminally responsible.
> 
> Also, if the boat dealer was getting kick backs knowing that the policies were garbage they could be accomplices in the fraud.


Where is the proof of intent to defraud in the original story? Better yet, where is the proof D&R had any knowledge that the warranty company was going to fail? There's a lot of bashing of D&R in here with no facts to back it up.

I'd call Randy and politely explain your complaint to him. Never know, he may throw you a discount on something or try to make it right in some way. I'd be shocked if Randy knew the company was shady. He's got way too much at risk if he was found liable for fraud.


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## ESOX (Nov 20, 2000)

OH-YEAH!!! said:


> How's that for pushing garbage. We will sell you insurance which is basically a bet that you wont need to make a claim. But if you don't make a claim you get your $950 premium (the wager) back.
> 
> Patently absurd.


\


Actually I purchased a similar policy on a boat I purchased at Spicers / Houghton Lake in 2000. I collected all my money back.


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## OH-YEAH!!! (Jun 18, 2009)

ESOX said:


> \
> 
> 
> Actually I purchased a similar policy on a boat I purchased at Spicers / Houghton Lake in 2000. I collected all my money back.


I don't own a boat and have never heard of such a thing. 

I stand corrected and will retract my earlier statements.


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## SunSet Bass (Sep 9, 2009)

I have no facts proving D&R nor do I think they were in on the scam.
As far as having proof of the refund, I have two Pro-Guard documents stating the terms of the refund, dated and signed by both D&R and myself.
I also have the the NO Claim Bonus form that tells you what you need to do to receive your refund.
I plan on calling D&R tomorrow and talking to Randy about the situation. Depending on how that goes I plan on calling Mr. Cox. If anyone knows of someone who has bought a boat from D&R between 2005 and 2008 please let me know if they bought the warranty also.


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## jlcrss (May 17, 2006)

I bought a Jeep and it was the same deal I got my money back. Business can't control whether or not they go out of business. I am just saying I don't think there is any intent there. You seem to know more than anyone else so I will let you say otherwise.


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## SunSet Bass (Sep 9, 2009)

I found this on this site (www.attorneygeneral.gov/press.aspx?id=3893 -) while doing a little research:

Corbett said that Hasan and Pro-Guard are also accused of falsely claiming that all of the money received for the sale of these warranty contracts would be placed in a secure escrow account, controlled by a third-party. In reality, Hasan allegedly cancelled the independent administration of the account and personally took control of the account.
Additionally, the lawsuit claims that Hasan failed to ensure that his business would set aside enough funds to be able to pay all future consumer claims. By creating a scheme where "no claim bonus" contracts were sold for between $94 and $104, but allowing a maximum pay-out of up to $2,500 (based on the full price of the warranty or service contract), Hasan's business model allegedly only set aside approximately 10% of the funds that would be needed to pay all consumer claims.
*Press: The Attorney General's Press Office - Pennsylvania Office ...*


I guess this guy is a crook!!!!


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