Only 10 months after Phyllis Swank bought her 2003 Ford Escape from a friend, she was already driving it into the repair shop.
"It started making a knocking noise,” Swank said.
Midwest Ford in Hutchinson told her she needed a new engine. But Swank wasn't worried. She had bought an after-market extended warranty through the Warranty Corporation.
"The Warranty [Corporation] called and said we are declining your claim, because I didn't change the oil every three months,” Swank said.
But Swank says she followed her contract. According to Swank, it says she is supposed to get her oil changed according to the manufacturer's recommendations.
"Twice a year or every 5,000 miles,” Swank said.
In the 10 months she owned the car, Swank showed proof she had the oil changed twice and barely put on three-thousand miles. Matt Rich from Midwest Ford helped replace the engine in Swank's Escape.
"They stated to her, she needed to change oil in it every three months. And, according to Ford's standards, that's not what they require by Ford,” Rich said.
Swank says she upheld her end of the contract, since Ford requires an oil change twice a year or every 5-thousand miles on her Escape. But Swank says the Warranty Corporation argued it should have been every three months.
"You just need to watch-out for after-market extended warranties,” Rich said.
Rich recommends going with a manufacturer's extended warranty. He says you take a risk with other offers.
"There are a lot of good ones out there. But unfortunately there are some out there that any little stipulation, any little thing that you do that's wrong, they'll void the warranty,” Rich said.
Factfinder 12 checked-out the Warranty Corporation out of Mobile, Alabama. It is an accredited business with the Better Business Bureau. And, it has an A-plus rating. All 28 of its complaints have been resolved. However, the Michigan Attorney General reached a settlement with the company after it allegedly violated its consumer protection law. But the BBB says that happened seven years ago, under different ownership.
"I am probably going to file a complaint with the attorney general's office,” Swank said.
The BBB told Factfinder 12 Swank should also file a complaint with the BBB in Mobile.
"I'm in the hole,” Swank said.
She lost almost three-thousand dollars in the ordeal.
"But I have my vehicle back and I can be on the go,” Swank said.
Factfinder 12 reached out to the Warranty Corporation. It stands by its belief Swank did not provide the proper maintenance. The Warranty Corporation says it saved her one thousand-dollars by finding her a cheaper engine. And, it refunded Swank's entire premium, almost 250-dollars, before dropping her as a customer.
