Warranty USA, also known as Consumer Financial Services Group, recently experienced a business failure and filed Chapter 11 bankruptcy. For more information about the bankruptcy, you will need to contact the Las Vegas Division of the U.S. Bankruptcy Court for the District of Nevada. You may also obtain a claim form and general information about the bankruptcy court by visiting the court's Web site at www.nvb.uscourts.gov/. The case number is 02-12318. It is important to understand, however, that refunds through the bankruptcy court may not be available for many months, if at all.
Depending on the terms of your contract and the date on which you purchased that contract, you may also have recourse against one or more parties other than Warranty USA. You may want to contact a private attorney to discuss you legal remedies.
Unfortunately, there is no guarantee that you will be able to get your money back. But under the law, you have several options for attempting to obtain a refund.
First, you may seek a refund through the bankruptcy court by filing a proof-of-claim (you can download a claim form at www.nvb.uscourts.gov). It is important to understand, however, that refunds from the bankruptcy court may not be available for many months, if at all.
Also, depending on the terms of your contract and the date on which you purchased that contract, you may be able to get a refund from a company other than Warranty USA or you may be able to get another company to honor your current warranty policy.
If you purchased your policy using a credit card, you may also contact your credit card company as soon as possible to see if you are eligible for a charge-back.
You may also want to contact a private attorney to discuss any other legal remedies you may have.
Depending on the terms of your contract and the date on which you purchased that contract, you may be able to get a reimbursement or obtain coverage from a company other than Warranty USA. For example, look at your policy to see if it lists an insurance company or other business that will cover your claims if Warranty USA fails to pay. If it does, you may wish to contact that business to see if they will cover your warranty claim.
You may also seek a reimbursement for covered repairs through the bankruptcy court by filing a proof-of-claim (you can download a claim form at www.nvb.uscourts.gov).
The Texas Attorney General's Office, in coordination with the Texas Department of Insurance and the Texas Department of Licensing and Regulation, is investigating potential claims against Warranty USA, its affiliates, and other related companies.
The Attorney General's Office, however, is prohibited by law from providing legal advice or representing individual consumers.
If you paid for your warranty policy with a credit card (but not a debit card), you may have a right to what is commonly called a "charge-back" from the credit card company. The federal Fair Credit Billing Act establishes procedures that require creditors to correct mistakes quickly and resolve disputes between consumers and merchants. Your rights and an explanation of how to request a charge-back should be summarized on the back of your credit card statement.
You may file a complaint online with the Texas Department of Licensing and Regulation by visiting www.license.state.tx.us/warrantycomplaint.
Or you may file a complaint with the Attorney General, by calling the Consumer Protection hotline toll-free inside Texas at (800) 621-0508 to request a complaint form, or by visiting www.oag.state.tx.us.