Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Smart Shopper smart choice warranty HELP !
125 messages, Last post on Mar 10, 2008 at 9:36 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
i have the warranty financed in my car loan will i be able to not pay the 1500.00 on my loan ?
|
|
|
hi kstum320. Unfortunately, you will not be able to ignore the $1,500 that you added to your auto loan for this extended warranty. This money has already been paid to the warranty company by your bank and your bank is going to want all of its money back regardless of whether your extended warranty company is holding up its end of the bargain. Car_man Host Smart Shoppers / FWI Message Boards |
|
|
|
| Apparently, SC&E Administrative Services (who accounted for 40% of NWIG's business) is NOT going out of business, as was once believed. I think the SC&E site was created as a result of NWIG stating that VSC holders should contact their dealers or the company that sold the contract to the dealership with questions. It was a dispute with SC&E that caused NWIG to go into liquidation in the first place, from what I've read. My contract was sold to me by my dealer and it says that "some of the dealers obligations may be assigned to SC&E Administrative Services". I have been following this fiasco from the very beginning and this is the first public action/statement I have seen by SC&E. I think things are getting very interesting. In any case, don't let your dealer off the hook! The language in my contract is very ambiguous and I recommend contacting your state's attorney general if you've been told by your dealer that they won't honor the contract. Keep the pressure on the dealers! *My contract also states that "the contract is between me and the selling dealer."* There are a lot of good, in-depth articles about the NWIG/SC&E situation in the Lincolstar Journal at http://www.journalstar.com. Just type in "NWIG" in the search box at the top of the Lincolnstar homepage and it will bring up all the articles. Thanks to Edmonds.com for hosting these discussions. I think people who bought these contracts really need to educate themselves about the situation and fight back, and not just chalk this up to experience. | |
| The web site was set up because they are no longer answering the phones. When you call you get an answering system that directs you to the web site. Keeping pressure on the dealers is the only recourse at this point but its going to come down to which dealers had reserve funds and how far those funds go. Chances are the only dealers out there who have been covering claims are the ones who had reserve funds and hope to recoup that money when the funds are released. I'm sure SC&E will shut down, their reputation is shot, who's going to do business with them? Chances are Deltagroup (the parent company) will also go out of business eventually as well. | |
|
|
| It's my understanding that the reserve funds are in the name of SC&E, and that individual local dealerships who sold the SC&E Smartchoice contracts don't have individual reserve funds in their name. Is this not the case? In any case, I would encourage people to read their contracts since, they might contain language like mine, which says "the contract is between me and the selling dealer" and "SOME of the dealers obligations may be assigned to SC&E Administrative Services," which means the dealer IS liable, at least to some extent. I was glad to see the latest release by NWIG which stated that VSC holders should contact the issuers of the contracts, and the NWIG only insured the issuers. It's forcing the issuers/sellers to take some responsibility rather than just trying to escape reponsibility by pointing their finger at NWIG. I bought a contract from my dealership, not NWIG. The liabilities of my contract are with SC&E Administrative Services, not NWIG. NWIG just insured the contracts. If SC&E decided to give the money to NWIG, which was domiciled in the Caymen Islands, then that was their poor judgment and they need to take responsibility for that. I feel as though the contract was misrepresented to me anyways since I was never told that SC&E was "selling off" the contracts to some company in the Cayman Islands, which is what their (SC&E and NWIG) whole arrangement seems to amount to anyway. | |
|
|
| Could it be that since they are just a "part" of DeltaGroup, that they cannot take this easy way out? Does anyone know more about SC&E's relationship to DeltaGroup, and the legalities of the obligations between these two entities? | |
| According to the article in the Lincoln Jounal Star on Sept. 7, NWIG requested Prudential to freeze the accounts. Why would Prudential agree to that unless NWIG's name was also connected to those accounts? The article also goes on to say that some dealers didn't qualify for segregated accounts, which leads me to think that some did have segregated accounts to cover their own contracts. However, from a business standpoint, it wouldn't make sense for the administrator to give complete access of those funds to the dealer. I would think the accounts were set up with trustees to oversee the accounts. As to the relationship between DeltaGroup and SC&E there was an article in the Dallas Business Journal in August 2002 that says "DeltaGroup is made up of four companies: PG Marketing, American Prime Asset, SC&E Administrative Services and Portfolio Administrative Services. Finally, the article in the Lincoln Journal Star on August 21 states DeltaGroup is a marketing organization owned by Yamagata Enterprises. | |
|
|
| I wonder whether any one of those four companies can declare bankruptcy without the other 3 or DeltaGroup as a whole having to do the same. I read in an article early-on that a lawyer for SC&E said that SC&E was going out of business. My dealership told me the same. But apparently not, at least while all that reserve money is in limbo. My understanding is also that DeltaGroup forced the liquidation of NWIG in order to terminate their relationship with them, since NWIG kept asking for more money to cover claims. That dispute is what brought about the whole situation, and I haven't heard anything about that dispute going to court yet. Has anybody heard the latest on that? | |
| If the companies are set up properly one could go bankrupt without effecting the others. However, I would think that it may be possible to sue the parent company or its owners under certain circumstances. Usually, the main reason for setting up so many companies is protecting the group as a whole. The process of going out of business is a slow one. Look at NWIG, they didn't even lay any employees off until about 2 weeks ago! Which means they were still paying all those salaries. I know that it was a dispute between the two companies but the only versions I've seen came from NWIG people so I'm not sure I trust that and I haven't seen any info on a court battle over the dispute. | |
You are here:
Forums
Smart Shopper smart choice warranty HELP !
