1SourceAutoWarranty.com Bankrupt. We Need Your Help

Our extended warranty company 1SourceAutoWarrantee (reinsurer is Primeguard)
went insolvent. We are looking for members for a class action suit and to
discuss ways of trying to recoup our losses. I started a Yahoo group. If you
can help or have been burned, post to . To
join or view previous messages go to
http://groups.yahoo.com/group/1SourceClassAction/

Official info from the State can be found at
http://www.hawaii.gov/dcca/areas/ins/ins_div_actions/primeguard/

 

inappropriate link snipped

inappropriate link snipped

While it is likely that this is another attempt by a troll to engage
people in arguments over some unknown whatever it is, on the off
chance that this may actually be real...

Laws were passed years ago to prevent this. From what I understand,
companies must purchase bonds to ensure that buyers of extended
warranties do not suffer when they go out of business. Not difficult,
as extended warranties yield about 90% profit for these companies
(which is why nobody in their right mind would buy one unless there
are really unique circumstances).

Instead of wasting your money on a lawyer who is simply going to walk
away with all the money, why not ask the "government" agency you
linked to what they can do to direct you to receive compensation.

Of course we all know that you are probably some sleaze bag lawyer
trying to drudge up business...

*************************
Dave

 

In the past, I would never get an extended warranty.
But for modern vehicles, it's getting well worth it.

We are not talking worn out shocks or warped rotors.
On-board computers, load leveling suspensions, brake
force distribution systems, etc. Not cheap stuff to
even diagnose, let alone the actual repair bill.

Thanks,
Scott

 

It is real. But as usual, it's not the whole story.

No, not exactly. In lieu of purchasing bonds, these warranty
companies can sign up with Risk Retention Groups (RRGs)
many of which are basically fly-by-night operations setup specifically
to get around the insurance laws. By the time the attorney
generals and insurance comissioners of a particular State figure
out that a particular RRG is bogus and start revocation proceedings,
a lot of customers have already been screwed.

For the record, the 1 source auto warranty company that they
are talking about that was backed by a risk-rentention-group
named primeguard; Primeguard Insurance Company Inc RRG
failed on Dec 19, 2005. Primeguard is also based in Hawaii,
that right there should tell you something.

1 source auto warranty, like a lot of these scammers, did a lot
of online sales. It is likely the OP bought the warranty online. The
problem with doing that is that the State Insurance comissioner
didn't get a chance to even look at this company to give it pemisison
to even sell in the OP's state in the first place.

Nothing. The government agencies involved have already decertified
these folks, this is really a civil matter. It is quite likely that no
actual laws
were broken. It isn't 1SourceAutoWarrantys fault, they followed the
insurance laws by getting a RRG to back their policies, when that RRG
went bankrupt, that wasn't a failure caused by 1Source. While you can
argue that Primeguard knew full well that they were simply engaging in a
ponzi scheme, Primeguard would probably argue that it was the fault of
companies like 1Source for submitting an unexpectedly large number
of claims.

This is why the States have insurance comissioners and it is why if
you do decide to buy insurance online, from an out-of-state insurance
company, that you must basically do what you already pay good tax
money for your state insurance comissioner to do - that is, investigate
them and their underwriting companies. There are sites like www.ambest.com
that do this that you can pay to get access to their ratings.

No, the OP is one of these people who saw a deal and went for
it without checking it out throughly. Now he has a pig in a poke and
wants his money back. I guess he's never bought a used car in his
life.

What the OP doesen't realize now is that he's getting setup to be
victimized twice. Fiirst by the insurance scammers and second
by the lawyers he wants to go after the scammers. Primeguard
listed assets of 3 million dollars at failure, and they probably have
a whole raft of creditors all lined up to get some of that. Any
smart lawyer looking at this knows that payout on claims is probably
going to be a few cents on the dollar, and won't be worth his time,
so he is going to want fees upfront - and if the OP is stupid enough to
pay those fees, the OP is going to lose even more money.

Class action lawsuits are only worthwhile when the company being
sued is a going concern. They are useless for bankrupt companies
because the bankruptcy court determines what gets paid out, you are
better off just bypassing the lawyers and going directly to the bankruptcy
court and registering
all your unpaid invoices and waiting to see if you get anything. In
this case the OP cannot list as a creditor with the bankruptcy court
handling the Primeguard bankruptcy, only 1Source can, and 1Source
obviously decided as soon as it's RRG failed, to simply go out of
business, leaving behind a crowd of people like the OP.

What the OP needs to do is just understand that he paid a rather
expensive tuition bill for the University of Hard Knocks, and move
on with his life. We've all done stupid stuff in our lives that has cost
us thousands of bucks, it's just part of life.

Ted

 

Well said, Ted. More specifically, I think this says something about the
questionable value of extended warrantees in general, on all products.
Sometimes its better to assume risks yourself in the first place.

 

[TOP POSTING CORRECTED as a public service]

If that were true, then peope would stop selling them because they
would become unprofitable. On average, the companies selling these
plans MUST take in more money than they pay out or they would go
bankrupt. Consumers get screwed either way.

While that is true, that doesn't mean an extended service plan is
somehow a better deal for "modern" vehicles (or for any other type of
vehicle, for that matter). They are still structured to cover only
those items that break infrequently and exclude those items that break
often.

Statistically speaking, extended warranties will ALWAYS be a waste of
money for the consumer, and a cash cow for the companies selling them.
The house has an advantage, just like in Las Vegas.

 

What losses?

The irony is that your chances of actually having a claim paid under
your extended service plan are still about the same as they were
before the bankruptcy. You kissed that money goodbye the day you paid
it to Primeguard, not the day the company went bankrupt.

 

Banks make money. They must be screwing us. Should we stop using
banks? The grocery store is making money. They must be screwing us.
Should we stop using grocery stores? Insurance companies make money.
They must be screwing us. Should we stop using insurance companies? Of
course companies that sell extended warranties are in it for the money,
if not they would be working from a very poor business model. I'm glad
that you see the logic in their business, but I'm not glad that you
think a profitable business means they are screwing everyone.

I have had 2 extended warranties and both of them have MORE than paid
for themselves -- with 1 or 2 visits to the dealership! Now, my old
truck, never had an extended warranty, and it's never had to go into the
shop (it doesn't have any fancy electronics/gadgets to break).

PS- Top posting very much intentional, thanks.

Thanks,
Scott

 

P. S. PLONKing very much intentional, fuckyouverymuch.

 

Idiotic top posting by stupid ass script kiddie corrected and idiot
plonked...

When they have a 90% profit margin yes.

Proof again that you are a fucking retard. Try buying something that
is made well next time.

Yes, all idiots do that. Bye bye.

*************************
Dave

 

Extended warranty companies have 90% profit margin?
If they pay more for services than I paid for their
warranty, how are they making a profit? Maybe they
make deals with repair shops to drop the actual cost
of the repair, like health insurance companies?

All idiots top post? You folks crack me up!

Thanks,
Scott

 

Indeed.

Only people who lack critical thinking skills believe a company can
sell extended warrantys for $50 each, pay out $100 worth of claims on
all of them, and still stay in business. The only way an extended
warranty can "more than pay for itself" for person A is by ripping off
persons B, C, D, E, F and G, giving them LESS than their money's
worth.

Only retards think that EVERYONE is going to be person A.

 

No, but the only people who top post are idiots and/or those that
haven't been clued in as to the correct way to post. We know the
latter isn't true in your case so it must be the former.

nate

 

Why would I desire to scroll through a bunch of text that I've already
read, perhaps several times, simply to get to the new information? The
ease of which various "netiquette police" jump to slander really makes
me laugh! Or, maybe more accurately, LOL!

Thanks,
Scott

 

Scott: I agree,i am tired of scrolling all the way down to read the new
info.If i don`t know what is going on in the thread then i can read what is
below the top post.Bottom posting is a pain in the butt and it should finally
be replaced with the much more sensible top posting.Rick

 

Cool, two idiots identified in one day.

nate

 

Thanks for correcting me Nate, I slipped up in my use of English due
to the stress of having to deal with yet another Usenet newbie that
was too moronic to understand how to follow protocol.

I will say this, I would bet that surveys would show that top posters
and LLBs, Sloths, et cetera have a lot in common. Besides being
idiots that is.

*************************
Dave

 

Sorry, I only have 10 years Usenet experience.

Surveys may also show "netiquette police" are all too often quick to
slander and make assumptions about people the don't know. I thank you
guys for proving my point.

PS- The "netiquette cops" enjoy having the last word, too, so I'm sure
this is not going to be the last post. But I'm done and have made
my point, so I will let them get in their final word.

Thanks,
Scott

 

This is a good example of what not to do on Usenet. If you were capable of
economically analyzing these simple questions, you'd both do it yourself. If
you're not capable, then pointing out simple economic issues to you doesn't
do any good. Instead, now you two have a stupid urinating contest going.

The reason you're arguing is that one of you is far more capable of economic
evalutation than the other. Y'all can figure out who's who pretty easily.

 

There is one more group: those who get all uppity 'n shit when you
explain (politely) how to post, and they then top-post on purpose in a
lame attempt to piss you off.

When someone resorts to this sort of childishness, I feel no remorse
about having PLONKed them; they clearly have nothing of any value to
say.