The Penn Warranty Corporation, Wilkes-Barre, PA - When my transmission broke, Penn Warranty authorized a reimbursement amount without ever reviewing the reimbursement amount with me, the customer

The Penn Warranty Corporation, Wilkes-Barre, PA - When my transmission broke, Penn Warranty authorized a reimbursement amount without ever reviewing the reimbursement amount with me, the customer

The Penn Warranty Corporation, Wilkes-Barre, PA I would not recommend a Penn Warranty to my worst enemy! I purchased a Penn Warranty Platinum contract for $1,300. When my transmission broke, Penn Warranty authorized a reimbursement amount without ever reviewing the reimbursement amount with me, the customer. Once authorized, a claim must be contested through their Disputes process.

Penn Warranty has designed the Disputes process to be a lengthy, paper-intensive process to discourage customers from disputing claims. In addition, Penn also authorized a reimbursement amount based on the cost of a used transmission with 69,000 miles that they located in a junkyard in New Hampshire (my car was being fixed South of Boston).

I am dissatisfied with Penn Warranty's service for two reasons: 1) Penn Warranty recognizes a customer's mechanic as the customer's agent, but they do not notify the customer of this policy even if the customer makes no action or indication of this arrangement, 2) Penn Warranty interprets a clause in their contracts in a way that no reasonable person would do so.

1. Penn Warranty essentially claims that my mechanic was acting as an agent when he did not contest their proposed reimbursement amount for the repairs to my vehicle. This assertion is false. I never implied either in writing, verbally or by action that I intended my mechanic to negotiate with Penn Warranty on my behalf. Upon receiving the reimbursement amount proposal, my mechanic immediately called me with the proposal amount.

I then called Penn Warranty who stated that my mechanic had already authorized the amount and that to contest the amount, I would have to complete a lengthy disputes process. When Penn Warranty called my mechanic with their proposed reimbursement amount, my mechanics subsequent actions described above prove that he never intended nor did I intend for him to act as my agent. Their assumption that my mechanic was acting as my agent was incorrect legally and is also bad business. 2. The terms of my Penn Warranty contract state the following: "When making repairs, the repair shop shall use components of the same type and quality as those removed which may include used components." As a reasonable consumer, I interpreted this clause to mean the following:

a. "When making repairs, the repair shop shall use components of the same type and quality as those removed". A reasonable consumer would interpret this part of the sentence to indicate that a mechanic shall not replace a brake pad of "B" quality with a pad of "A" quality or of "C" quality. This sentence leads a reasonable consumer to believe that he is being protected against sub-par components and that Penn Warranty is being protected against replacing a low-end part with a high-end part.

b. "…which may include used components." A reasonable consumer would interpret this part of the sentence to mean that if used components are in compliance with the requirement in the first part of the sentence (part a), then those used parts MAY be used. Emphasis on the word "may" implies an option to comply. Since this sentence is in the section entitled "What You Must Do ('You' being the customer)", again, a reasonable person would assume that the option to utilize a used part is up to the customer. One of the most important interpretation differences pertains to the time frame applied to the section "shall use components of the same type and quality as those removed." The "same type and quality" at what time in the service life of the part?

Again, as a reasonable consumer, should I expect a used part to suffice for a repair, it would have to function not like the part that broke did right before it broke (i.e., replacing my 69,000 mile transmission with a 69,000 mile transmission from a junkyard in NH), but as the part that broke functioned around (i.e., new or used) the time of its original install. For these reasons, I would not recommend a Penn Warranty. Additional information can be found at http://www.anti-pennwarranty.com and http://www.pennwarrantylawsuit.com/hidden.htm.

Comment On This

I too received the same exact treatment as this uy. they wanted to put a jnkyard tranny in my jeep from Ohio when the car was in Pa. It was alreay n the shop for 13 days before they made this decision. They never said I had to py the tear down fee which was 1000.00 and then any additional $. All they were giving was 800.00 for used tranny ( which was 250.00 from junkie in NY), 300.00 for labor . where do you do a tranny in under 5 hrs in and out? They are lirs and scams STAY AWAY

Comment On This

May I dispute this with this customer. The correct statement on the contract is "When making repairs the repair shop shall use components of the same type and quality as those removed which may include aftermarket, reconditioned, or used components." Think of it this way..For example an engine..Take it as an engine being the heart of your vehicle. Now when your heart goes bad, and you need a transplant..Where do they get the new hearts from? Do they make new hearts? No they are "used" or "reconditioned" hearts. So think of it that way. And I might also add that the authorized amount can be used for the repair. How the customer wants their vehicle repaired is between the shop and the customer. So you couldve used the amount authorized by Penn Warranty to rebuild the transmission, over haul it, or go with the one they located.