Legal Question in Real Estate Law in Maryland

I purchased a warranty agreement that will only allow $1425 for a transmission, but the lowest that a transmission cost is $1900 w/out labor charges. I still don't have a rental or a loaner car in this matter. I paid cash for the warranty contract which I feel they are not honoring what I purchased.


Asked on 9/09/09, 2:07 pm

1 Answer from Attorneys

Robert Sher Wagshal and Sher

Most consumer publications recommend against purchasing these extended warranties, and one of the reasons is the one you're having a problem with. Usually there is a schedule of allowances that the warranty company provides with the agreement which tells the purchaser how much they'll cover for each covered repair. What they are doing is protecting you against catastrophic loss, but not the entire repair cost. Or they have a sliding scale based upon the age of the part needing replacement. If this information was contained in the warranty agreement when you purchased it, you are bound to the contract terms. If the agreement was in any way misleading, such as by saying they would cover "bumper to bumper" without any out of pocket cost to you, you should contact the state attorney general's office consumer protection and see if they can help you, although probably you are dealing with an out of state company.

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Answered on 9/14/09, 2:41 pm


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