Fixing The ‘Reimbursement Guarantee' That Paid Out $0


Jim O’Brien reliable little car created quite the quagmire.

He bought a 2009 Honda Fit new, back in 2009. That same day, he paid an extra $1,499 for a service contract that would extend the life of the manufacturer’s warranty.

What made it unusual was that the protection package included a "reimbursement guarantee." It’s outlined on the flip side of O’Brien’s invoice.

The reimbursement guarantee says that if the vehicle has zero claims in the first seven years, the owner will be refunded the purchase price, minus a $50 processing fee.

O'Brien says his Honda Fit never needed service. So, when the contract recently ran out, he applied for reimbursement.

And was denied.

"I felt ripped off," he wrote us. "The contract clearly states a return of the money."

O'Brien asked us to help.

We contacted Manly Honda of Santa Rosa but did not get a response.

Next, we inquired with Honda’s corporate office. A short time later, O'Brien told us he got a check from Manly Honda for the full $1,499.

Honda did not want to make a statement regarding the case. We never heard back from Manly, the dealer that sold the extended warranty to O’Brien.

We checked with the California Department of Insurance. A spokesperson said the state’s files don’t contain any complaints about this dealer or that unusual reimbursement guarantee.

The department stressed that consumers who are considering an extended warranty should make sure it is backed up by a licensed insurance company before signing up.

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