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Warrant-EASE Refund

I bought a Warrant-EASE extended warranty and the company has ceased operations. Can I get a partial refund from the dealer?

In July 208 I bought a 2007 Mitsubishi Gallant, and also purchased the additional warranty package for $1,599. Recently I discovered that the warranty business Warrant-EASE went out of business. I discovered this simply because I work at the bank that financed my car and not through the car dealer themselves. Am I entitled to a partial refund from the car dealer that I purchased the car from since that is where I bought the warranty package?

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Bill's Answer
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I cannot verify that Warrant-EASE has ceased operations. However, calling the telephone numbers listed for the company results in a "the number you have reached is no longer in service" announcement. This is not a good sign.

Assuming that Warrant-EASE has ceased operations and declared bankruptcy, you have one recourse and that is to find the bankruptcy trustee who is handling the case and file a claim. Your claim would be unsecured, and would stand behind secured creditors. It is unlikely that you and fellow consumers would see any reimbursement from such a claim.

Regarding your question about a refund from the dealer, I do not see a claim there if the dealer was acting as an agent for Warrant-EASE. Review your contract to see the structure of the agreement with Warrant-EASE and the dealership. As a practical matter, it is likely that the dealership was left holding the bag on repairs it made under warranty and that Warrant-EASE failed to pay when it ceased operations.

I hope this information helps you make better money decisions.

Best,

Bill

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