ilovemyredhotc6

Bottom Line Up Front: Looking to collect information from anyone that has had similar experiences as identified below. I am pursuing a lawsuit against the company and may be forming a class action lawsuit if enough individuals have had this issue. Please feel free to contact me regarding your experience and provide your contact information.

Warning to all corvette (and GM vehicle) owners that may be considering purchasing a GMEPP vehicle service contract/extended warranty plan – the new company running this plan is very deceptive and will do anything they can to void/cancel the contract when you need repairs. My 2007 show car had GMPP on the car from 2009-2015, and I never once had an issue getting a claim paid by the specialty repair shops. My car recently went into the shop for a wobbling harmonic balancer, and the service contract company sent a claims adjuster out to look at the car after request for repair approval by American Heritage Performance (highly regarded shop here in SoCal, they do great work!). The adjuster took a picture of my engine bay and other areas on the car and indicated he was recommending the repair be approved. The next morning, at 0621 PST (0821 CT), a supervisor at AMT Warranty Company looked at the pictures of the engine bay and noticed that there were headers installed on the car. At 0625 PST, that same supervisor made the decision to unilaterally cancel the service contract in breach of the CA specific terms of the service contract and denied the claim. I have fought with them for 6 days regarding their breach of contract, and through this fight determined that a) they will do anything they can to cancel the contract so they can “refund” you a prorated amount and b) the Insurance Company listed as the guarantor of the service contract (Wesco Insurance Company, aka Warrantech) is part of the Service Contract Company (AMT Warranty Company) despite no disclaimer that they are affiliated. While the contract does not cover the replacement of aftermarket parts, it also does not provide an allowance for the company to cancel the contract due to the presence of aftermarket parts.

Throughout this process, I called the selling dealership multiple times, and despite their sales of numerous contracts to corvette forum members they provided little to no assistance in this matter. AMT Warranty Company is claiming that the car should have never had a contract sold on it to begin with, and that the selling dealership/individual is at fault, as the car has modifications including “performance parts” (headers, exhaust). The selling dealership deferred to AMT Warranty Company and is stating there is nothing else they can do to help. As such, I wanted to make sure that the community is aware of this change in approach by AMT Warranty Company (GMEPP) as compared to Ally (GMPP) and ensure you take this into consideration when purchasing a service contract.

Please contact me via PM if you would like more information regarding this issue or if you would like to provide information on issues you have had as well as your contact information for possible inclusion in a class action lawsuit against AMT Warranty Company as administrators of GMEPP.

pkincy

I don't think AMT has any connection with GM. GMEPP is a wholly owned subsidiary of GM and hence is a true warranty where other companies are selling you an insurance product to cover repairs. GMEPP does not require an insurance license to sell a warranty because it is not a insurance product. Ally and I would imagine AMT does require an insurance license. You are in California. The quickest and best recourse is to the Insurance Commissioner.

From Google: AMT Warranty Corporation, a wholly owned subsidiary of AmTrust Financial Services, Inc. (NASDAQ: AFSI),

OK, I am totally confused. Some sites say GMEPP is a subsidiary of GM Financial. But AMT sure looks the same as what some dealers are calling GM Protection Plan. But for sure Dennis Fichtner says he can sell GMEPP everywhere (because it is not an insurance product) while he can't sell GMPP (ally) in Ca because Ca is a state that requires an insurance license to sell any insurance product to include warranties. I have found an AMT sample contract and it definitely says it is an insurance contract in fact giving the Ca Dept Of Ins number on the first page of the contract.

ilovemyredhotc6

I appreciate your input. While the GMEPP may be "backed by GM" as is strewn across the internet, I can tell you that after hours of looking through the contract and calling the company regarding my claim that the Administrator of the contract is AMT Warranty Corporation in Bedford, TX. I contacted the selling individuals, Dennis and Ken Fichner, and was not able to get support in getting the claim paid. I had multiple claims paid under GMPP for this same car with the same modifications (exhaust and headers), and even had GM warranty work done on the car during this time, without ever having an issue. AMT Warranty Corp is the administrator that made the decision to breach the contract and unilaterally cancel my contract. Within this contract, it identifies that "Our obligations and the performance to you under this contract are guaranteed and insured by a policy issued by Wesco Insurance Company (a California approved insurance Company). If a covered claim is not paid, you may file a claim directly with the insurance company." When you call Wesco, it turns out that the division that handles "insurance claims" against failure to perform under this contract is part of the administrator company (AMT Warranty Corporation) - seems a little fishy to say the least.

Just my experience, but based on the wasted hours caused by their 4 minute review and decision, I will never again consider purchasing a GM warranty product and it may make me reconsider purchasing another corvette (I have had 3 and am only 38 years old, had planned to buy many more).

pkincy

The Fichtner's have been very clear that they don't have an insurance license which is why they can't sell Ally. Ally was pre bankruptcy a part of GM so wasn't treated as an "insurance product" hence anyone in the country could sell you their coverage. Post bankruptcy Ally (old GMAC) is now a totally separate organization so any sale they make is under the insurance laws.

What I am wondering is if GMEPP is as I have seen in a couple of places a subsidiary of GM Financial and has hired AMT to simply administer the contracts. That may be enough to take them out of the "insurance" laws. Who knows.

With the old GMPP, their was a regional rep that the service manager at the dealership worked with often (actually my service manager was married to the GMPP regional rep) and we could work out these kinds of things before they got escalated.

Unfortunately once a claims examiner has made a decision overturning that decision gets a lot harder. If your suspension needed repairing than I think you would have an argument that the headers wouldn't likely affect that part. But with a bad Harmonic balancer I think it is clear that headers (and a tune?) would affect that.

In fact it is totally clear today that any tune at all will cause a warranty problem and I don't know of anyone that has won that argument.

And that is a large part of why many of us that have a long history of modded cars have left the newer ones stock.

pkincy

Ok, I found a full contract online and read it. A couple of problems. First, clearly any modifications and you are toast. You might get the unused portion of the warranty cost back however. Again Ca DOI if AMT won't give it back directly.

More importantly your "class" action suit. Presumably you have researched that you have an arbitration clause in the contract so can't sue AMT, but you are relying on the normal "class" action exception to that arbitration provision. Two problems with that. The K specifically states that in Ca that exception is removed for this K. And to top that off today the Senate voted 51-50 along party lines (House voted last week again along party lines) to eliminate the "class action" exception to financial firm arbitration clauses. Trump has not yet signed the bill, but he will soon and that will be well before you could sue and certify a class. So no remedy any longer when Wells Fargo forges a million accounts, or Equifax loses your and 143 million other peoples data, etc. The only remedy is individual arbitration.

I don't mean this to be political but the current congress was elected by the people and they are going to do things differently than others before them. Some better and some worse. This change was definitely not consumer friendly, but the GOP is likely saying it was only the lawyers that profited from "class" action suits and with that statement they are essentially correct. But until the political winds change direction, we can pretty much write off "class action" suits of financial firms.

ilovemyredhotc6

Appreciate the insight. Fichner had his folks talk with the Regional Service Manger for the GMEPP sales, who basically told me (through them) that I'm on my own. Fichner was well aware of the mods when he sold me the policy as I mentioned that this is a show car with extensive aesthetic mods and a few performance mods - heck, I even have a website for my car that lists all the things I have done to it. With that said, when interpreting the intent of the contract I think it is important to look at what other states have ensured is included, so for Nevada they specifically state that any modification to the car will not invalidate the contract as a whole.

I have no issue with them not covering the headers or exhaust - what I do have an issue with is them breaching the CA terms of the contract and canceling the contract after 60 days despite a lack of payment, fraud, or misrepresentation (per the CA specific section of the contract). I am in the process of filing with DOI now and am also seeking legal advice.

DennyMenholtChev

Some may consider this post as “damage control” but I consider it stating the facts.

Chevrolet-Buick-GMC-Cadillac is a Divisional Extended Protection Plan that provides premier coverage for your General Motors vehicle.

This plan is offered by GM dealers thru General Motors. The plan is backed by an insurance company like most vehicle service contracts.

WhenI email a quote for a Vehicle Service Contract, my quote includes the following:

“Chevrolet-Buick-GMC-Cadillac is a Divisional Extended Protection Plan that provides premier coverage for your General Motors vehicle.”

“Many vehicle service contracts don’t cover certain items that can lead to other failures, like seals and gaskets. We do. In fact, most mechanical and electronic components of your vehicle are covered against mechanical breakdown.
With the Chevrolet-Buick-GMC-Cadillac Protection Plan, you'll have coverage for many components, including wear and tear and seals and gaskets which are not covered on many other plans on your vehicle. With the increasing complexity of today's vehicles and high-tech features, the Chevrolet-Buick-GMC-Cadillac Protection Plan is the best way to ensure that you are covered against potential expensive repairs.
In the event of a covered component failure, even when it is the result of normal wear and tear, you're protected.Chevrolet-Buick-GMC-Cadillac Platinum coverage is an exclusionary coverage. That means that everything is covered on your vehicle unless it is on the exclusion list.”

“Exclusion List
Components that are not covered are those listed on the Exclusion List:
A. Any of the following parts: carburetor, battery and battery cable/harness (unless listed as specific covered parts), standard transmission clutch assembly, friction clutch disc and pressure plate, distributor cap and rotor, glass, lenses, sealed beams, light bulbs, fuses, circuit breakers, cellular phones, game centers, AM/FM radio/cassette/CD players exceeding $3,000 repair or replacement cost, speakers, audio/video equipment, pixel damage due to impact on display screens, key fobs, tire pressure sensors, remote control consoles, radar detection devices, brake rotors and drums, all exhaust components, and the following emission components: EGR purge valve/solenoids/sensors, vacuum canister, vapor return canister, vapor return lines/valves, air pump/lines/valves, catalytic converter/filtering/sensors, emission vapor sensors, gas cap/filler neck, weather strips, trim, moldings, bright metal chrome, upholstery and carpet, paint, outside ornamentation, bumpers, body sheet metal and panels, frame and structural body parts, vinyl and convertible tops, any convertible top assemblies, hardware or linkages, tires and wheels/rims. External nuts, bolts, and fasteners are not covered except where required in conjunction with acovered repair.
B. Maintenance services and parts described in your vehicle’s Owner’s Manual as supplied by the manufacturer and other normal maintenance services and parts, which include, but are not limited to: alignments, adjustments, wheel balancing, tune-ups, spark plugs, spark plug wires, glow plugs, hoses, drive belts, brake pads, brake linings/shoes, and wiper blades. Filters, lubricants, coolants, fluids, and refrigerants will be covered only if replacement is required in connection with a breakdown.
C. For any damage and/or Breakdown resulting from collision, road hazard, fire, theft, vandalism, riot, acts of terrorism, explosion, lightning, earthquake, freezing, rust or corrosion, windstorm, hail, water or flood, acts of God, salt, environmental damage, chemicals, contamination of fluids, fuels, coolants or lubricants.
D. Any breakdown caused by misuse, abuse, negligence, lack of normal maintenance required by the manufacturer’s maintenance schedule for your vehicle, or improper servicing or repairs subsequent to purchase. Any breakdown caused by sludge buildup resulting from your failure to perform recommended maintenance services, or failure to maintain proper levels of lubricants and/or coolants, or breakdowns caused by fuels containing more than 10 percent ethanol (if the engine was not manufactured for this fuel mixture), or failure to protect your vehicle from further damage when a breakdown has occurred or failure to have your vehicle towed to the service facility when continued operation may result in further damage. Continued operation includes your failure to observe warning lights, gauges, or any other signs of overheating or component failure, such as, fluid leakage, slipping, knocking, or smoking, and not protecting your vehicle by continuing to drive, creating damage beyond the initial failure.
E. Any repair or replacement of any covered part if a breakdown has not occurred. Any part that a repair facility or manufacturer recommends or requires be replaced or repaired or is an update,and is not a breakdown, is your responsibility and expense.
F. Any alterations that have been made to your vehicle or use of your vehicle in a manner not recommended by the manufacturer, including but not limited to the failure of any custom or add-on part, all frame or suspension modifications, lift kits, any tire that is not recommended by the original manufacturer if it creates an odometer/speedometer variance of greater than 4 percent, and trailer hitches. Also not covered are any emissions and/or exhaust systems modifications, engine modifications, transmission modifications, and/or drive axle modifications, which includes any performance modifications.
G. If, while owned by you, your odometer has ceased to operate and odometer repairs have not been made immediately, or the odometer has been altered in any way subsequent to purchase of the contract.
H. If your vehicle has ever been a total loss, salvaged, rebuilt, or is a gray market vehicle.
I. Any liability for property damage, or for injury to or death of any person arising out of the operation, maintenance, or use of your vehicle described in the contract, whether or not related to the parts covered. Loss of use, time, profit, inconvenience, or any other consequential loss, including any consequential damage to a non-covered partthat results from a breakdown.
J. Any breakdown where the manufacturer isresponsible for the repair or if the breakdown is covered by a repairer’s guarantee/warranty (regardless of manufacturer’s or repairer’s ability to pay for such repairs).
K. If your vehicle is used for towing (unless your vehicle is equipped with a factory-installed or factory-authorized tow package), or is used as a commercial unit (unless appropriate surcharge is marked on Registration Page and only as defined under “Definitions,” “Commercial Use”), or is used for rental, taxi, limousine, shuttle,towing/wrecker service, dumping (dump beds), cherry pickers, lifting or hoisting, police or emergency service, principally off-road use, prearranged or organized racing, or competitive driving.
L. Any pre-existing condition or any breakdown occurring before coverage takes effect or prior to the contract purchase date, or if the information provided by you or the repair facility cannot be verified as accurate or is found to be deceptively inaccurate.
M. Breakdowns that occur and/or repairs made outside of the United States of America and Canada.
N. Diagnostic and/or teardown procedures thatare not listed, or are in excess of the times listed in the current year’s national flat rate hourly guide in conjunction with a covered repair.”

The following is directly from the actual agreement:

Exclusions
Section F:
“If any alterations have been made to Your Vehicle or You are using or have used Your Vehicle in a manner not recommended by the manufacturer, including but not limited to, the failure of any custom or add-on part, allframe or suspension modifications, lift kits, any tire that is not recommendedby the original manufacturer if it creates an odometer/speedometer variance of greater than 4%, trailer hitches. Also not covered are any emissions and/or exhaust systems modifications, engine modifications, transmission modifications, and/or drive axle modifications, which includes any performance modifications.”

“This Vehicle Service Contract does not cover all Breakdowns and excludes some conditions and vehicles. Please read the Schedule of Coverages, Provisions of This Vehicle Service Contract and Exclusions sections of this Contract so You fully understand what Coverage is provided to You for Your Vehicle. If You have any questions regarding this Contract, please contact the Administrator toll-free at (877) 265-1072 or P.O. Box 927, Bedford, TX 76095.”

“IN CASE OF BREAKDOWN, YOU SHOULD TAKE THE FOLLOWING:
1. Return the Vehicle to the Selling Chevrolet, Buick, GMC, Cadillac Dealer or nearest Chevrolet,Buick, GMC, Cadillac dealership to ensure proper service and that genuine OEM parts are utilized for repairs. You may contact the Administrator for assistance in locating an authorized Chevrolet, Buick, GMC, Cadillac dealership. If the Selling Chevrolet, Buick, GMC, Cadillac Dealer or authorized Chevrolet, Buick, GMC, Cadillac dealership are not accessible, You may take the Vehicle to any licensed repair facility. However, authorization from the Administrator, verified by issuance of a reference number, must be received before any repairs are performed under this Contract.
a. Have Your Contract number, mileage and date of Breakdown ready for the Administrator.
b. Have the authorized service representative contact the Administrator at (877) 265-1072.
2. Upon Our request, You must allow the Administrator to inspect the Vehicle to gather necessary information regarding any claim. Under certain conditions when a Breakdown occurs You may be required to have the Vehicle returned to the Selling or nearest authorized Chevrolet, Buick, GMC, Cadillac Dealer.”

AMT Warranty Corp.
P.O. Box 927,Bedford, TX 76095
Customer Service / Claims (877) 265-1072
Email: protectionplanclaims@amtrustgroup.com
Available 24 hours a day / 365 days a year

Foosh

I agree the contract is crystal clear on mods voiding the coverage. Like all contracts, one should read carefully before signing and purchasing.

It should also be noted that with the proliferation of tuners and high-performance aftermarket modifications, warranty coverage is being scrutinized a lot more closely than it was 10 years ago, and for good reason.

ilovemyredhotc6

Foosh, I did read the contract from front to back and have a lawyer doing the same. Section F allows them to exclude performance parts from being covered, it does not give them the authority to cancel a contract solely due to the presence of any non-OEM parts. In fact, in the contract, it provides an allowance for a repair to be made using a non-OEM part if authorized by the contract holder (owner). Per this logic, allowing the owner to approve the repair with a non-OEM part would be allowing them to void their contract with parts paid for by the contract. In addition, CA has state specific modifications that state the contract can only be canceled if there is material misrepresentation or fraud, which there was not. If you look at the whole contract, the NV specific modification actually clarify the intent even further and specifically states that the presence of performance or non-OEM parts does not void the contract and that all other covered parts will remain covered...

My Vette Life

Did you buy the car from the dealer with all the mods and they sold you the contract?

MTPZ06

ilovemyredhotc6

The mods were on the car in 2007 when I purchased from the original owner, and the mods were disclosed to the selling dealer both when I purchased the original GMPP warranty and when I purchased the GMEPP warranty prior to the expiration of the GMPP warranty. GMPP did several repairs including to mechanical items in the engine bay that required photos of the engine bay and never once had an issue with the modifications. The contract itself allows for modified parts (aka non-OEM) to be used as replacements if authorized by the vehicle owner, which per AMT logic would be a violation of the contract and would void the contract...

strand rider

I would suggest your only chance is to contact the insurance commissioner, they are very customer friendly and you might catch a break. From my brief time in the industry, this office has a lot more yank than any lawyer you might hire.

I don't question you impressions, but from here it seems you were sold a product by a crook , since you car is modified and doesn't fit the cost structure of the product. They probably knew GM was disorganized and had poor cost controls they could exploit. Once this oversight was corrected, you got the hook. Consider yourself lucky you got some repairs paid for before the deception was discovered.

Why a good person would pursue an unfair business situation which generates a lot of unneeded problems and stress is beyond me, but as stated above, I don't have all the facts.

speedwaywhite

I am having a similar experience with GMEPP with my wife’s Cadillac, I spoke with Cadillac customer service regarding their relationship with GMEPP, they disavowed any connection to this protection plan. I asked Cadillac rep why do they call it GM protection plan if GM isn’t affiliated?
They couldn’t answer that.

I have GMPP/Ally on my Corvette, no issues getting repairs covered.

Buyer beware

pkincy

Well, GMPP original was part of GMAC and that is now Ally. I suppose after the bankruptcy GM decided to get out of the Finance and Insurance business and pulled a Trump....don 't own just brand. All profit, no risk. But I must agree, I will not do business with a warranty company that is essentially an insurance carrier. The challenge with that is that I won't operate a car as powerful and complicated as a Corvette without a warranty. So that places a 36 month limit on any Corvette I own. So I have 24 months left. No telling what I might get after that. Likely something that has the possibility of a worthwhile extended warranty however.

Or, I suppose, if Ally is still doing a good job that may be a reasonable option in 2 years. However they have a very sketchy reputation on the leasing side of the business. Their online bank is quite good but we will have to see how the old warranty organization does.