01 Nov Buying A New Car? Watch Out For Dealer Added Insurances! Part Four
In Part Three we saw a situation where the client was unaware that the insurance they had purchased through the car dealer was worthless because they had not purchased the necessary underlying collision insurance on their car.
While this situation is bad enough, client number three had a problem that is almost impossible to anticipate: She was the victim of fraud by the car dealership.
Client three was sold an extended warranty on a used car that she had purchased. Several weeks after purchasing the car it began to overheat. The mechanic told her that the repair bill was going to be in excess of $1,000.00.
When she attempted to make a claim on the policy the extended warranty insurer advised her that they had no record of a policy being issued to her, nor did they have any history of receiving a payment from the dealership.
As a result of a lawsuit we filed on the client’s behalf, we were able to determine that the car dealership had pocketed the money they had collected from the client for the extended warranty and had not sent it to the insurer.
Be careful when dealing with used car dealerships particularly those that offer their own financing and a variety of insurances. It is a good idea to be sure that the car dealership is reputable by contacting your local Better Business Bureau.
Latest posts by Kevin Gipson, New Orleans Bankruptcy Attorney (see all)
- The Reverse Mortgage. What You Need To Know! - April 24, 2016
- Payday Loans: Myths and Facts! - February 21, 2016
- Medical Credit Cards: The Good, The Bad, And The Ugly - October 14, 2013
- Will Obamacare Reduce Bankruptcy Filings? - October 1, 2013
- How A Government Shutdown Will Affect Bankruptcy Courts - September 28, 2013