Missouri Attorney General helps Jackson man gain refund after lodging customer complaint

Darrel Adams of Jackson said he took his 2000 Ford Ranger XLT into a local automotive shop recently.

"My truck was running really rough," he said.

Adams had a vehicle service contract (VSC) for over a year with a company called CarShield, whom he said "absolutely refused to pay" for repairs.

Some consumers buy motor vehicle extended service contracts on cars whose factory warranties have expired.

"I paid the bill, but I contacted the Missouri Attorney General Eric Schmitt's office and they got my (CarShield premium) back and it was almost enough to cover my out-of-pocket expense," Adams said.

Chris Nuelle, spokesman for Schmitt, noted the Adams refund and credited the AG's Consumer Protection Section.

"Already in 2021, the CPS has recovered $9,863,929.45 in restitution for Missouri citizens," Nuelle said, adding the attorney general's office fields complaints from thousands of Show Me State consumers every year.

Charles Cole of Cape Girardeau said he had a similar experience with CarShield, part of American Auto Shield of Lakewood, Colorado, when he discovered trouble with his vehicle.

"I had 'diamond' coverage with CarShield for my 2018 Jeep Cherokee, which I was told was similar to a new car policy -- with powertrain and engine warranty included, but the only thing not covered were the brakes," Cole said.

A spot check of CarShield's extended warranty coverage details reveals the diamond agreement does exclude brake pads, drums, rotor and shoes.

CarShield refers to "diamond" as its "best" coverage.

"This vehicle service contract is most similar to the manufacturers' new car warranty. It covers everything from engine and transmission failure to starter and fuel pump breakdowns," according to CarShield's website.

"A CarShield (representative) told me to take the jeep to the shop, which she said has to be in-network. Most of the in-network shops she quoted me were in St. Louis. I'm down in Cape Girardeau and if my car is acting up, by the time I get up there, the car's going to break down on me and I won't have any way to get back home," Cole explained.

"I need to get all of my payments back from CarShield because they haven't done anything for me, and I have records to show I've done preventative maintenance on my vehicle."

Adams and Cole both noted they have canceled their CarShield agreements, with Cole adding he now keeps a fund for automobile repair in a personal account.

Cole said he had advice for anyone tempted to buy such coverage, especially if marketed by a well-known person in a television advertisement.

"Please do not purchase any of these extended warranty programs that you see advertised by celebrities. It's better to save and do your own preventative maintenance yourself."

Buyer beware

The Better Business Bureau is warning consumers to use caution if buying a vehicle service contract without carefully reading the agreement first.

"Between 2000 and 2020, BBB of Eastern & Southwest Missouri & Southern Illinois processed more than 15,000 complaints against VSC companies in its service area," BBB said in a news release issued Tuesday.

A Branson, Missouri, man reportedly told the BBB he needed financial help from his church to have his car fixed after a VSC company denied a claim he made.

The man, who canceled his coverage without a refund, said he purchased the contract after seeing a TV commercial and claimed the company denied a claim he made a few months after buying the policy.

The BBB said the man had to pay approximately $4,600 out of pocket to have his transmission fixed.

"Never use them," the man told the BBB. "Stay away from them like the plague."