Buyer Beware!!! Extended Service Agreement Scam - Mr. Bill
Summary - if you want more detail, read past the first paragraph. I enjoyed the no-pressure purchase process at PSI Cars, but was sold a $2,612 extended service agreement that has a unique exclusionary clause that makes the agreement virtually worthless. If you have already purchased an extended service agreement through PSI Cars, or plan on making a purchase of a service agreement, I recommend reading this entire review - BUYER BEWARE!!!!
I purchased a 2015 Yukon Denali in October of 2017 with 34,805 miles on it. My trade in valuation and purchase price was fair and I appreciated the no-pressure sales environment. On Ben's recommendation I purchased the best extended service agreement that PSI offers for $2,612 that is supposedly "as good" as the bumper to bumper warranty (see attached picture). I left feeling good about my purchase and protected with future repairs.
Fast forward to May of 2020 with 81k miles - I had my first major issue with the Yukon with the A/C not working. I bring the Yukon into my local GMC dealer and they quickly diagnose that the A/C condenser has a leak and needs to be replaced. The Dealer contacts the warranty company, Fortegra Smart Autocare, to get the claim approved. Over the course of 4 hours, 6 phone calls, and a tremendous amount of frustration, the claim is denied because of an exclusionary clause in the contract (see attached highlighted picture).
Section F.G.3 of the contract excludes any repair that: "is a direct result of a mechanical or structural flaw that the manufacturer has acknowledged through any means, or that the manufacturer will repair at it's expense, including, but not limited to technical service bulletins".
The A/C condenser on the current generation Yukon/Tahoe line of vehicles is prone to developing a leak, so GM issued a technical service bulletin to dealerships to help them quickly diagnose the issue and make the repair. Because there was a bulletin issued on this component, my claim was denied leaving me stuck with a $1,500 repair bill out of pocket.
I was informed by the GMC dealer that the 2015-2020 Yukon/Tahoe line of vehicles have "hundreds of technical service bulletins covering every major component of the vehicle". Technical Service Bulletins are issued by all manufacturers to make the diagnosis of issues more efficient for their dealerships. This exclusion makes the extended service agreement virtually worthless and the GMC dealer informed me they have never seen this clause written into a service agreement before.
I first contacted the Service Agreement Company to seek assistance. They were unwilling to do anything and stated "we recommend everyone read the full details of their contract before signing". It is a 15 page agreement and I trusted that Steve and Ben would only sell legitimate service agreements. In the end it is my responsibility to read what I am signing, so great lesson learned on my part.
I contacted Ben via email explaining my issue and asked for help getting the claim resolved. After a few emails back and forth, Ben and Steve were unable to help with the claim and have left me stuck with a $1,500 repair bill. I hope PSI Cars does the right thing in the end...until then, be careful and read every detail of any service agreements you have purchased, or plan to purchase, at PSI Cars.
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