MikeNSX

Imagine, I went to my reputable local Audi dealer to buy an extended warranty for my 02 S6 in 2006. I bought the "gold plus plan" for $2285. It turns out to be from Fidelity Warranty Services Inc, based in Deerfield Beach, FL. I didn't go to the internet, but to my trusted Audi dealer. Now, I tried to use the warranty and my claim is denied for a bogus reason. Get this:

The lateral acceleration sensor (yaw sensor), which is part of the electronic stability control system, which Audi calls ESP, failed. I'm looking at a $700 part and a $1000 total fix.

The Gold Plus tier parts description in my contract says they cover "ESC System", amongst other things. So I thought this would be covered... right? What is ESC anyway. Well, ESC is the generic term recognized by the Society of Automotive Engineers (SAE) and other authorities (information from Wikipedia and SAE.org).

Google ESC and page after page of results listing Electronic Vehicle Stability come up.

So. it would appear that in the automotive context ESC means Electronic Stability Control.

Well, Fidelity is denying the claim because according to them, they meant for it to mean Electronic SPARK Control, which the adjuster said is a specific Chrysler ignition part. Furthermore this "senior mechanical claims analyst at Fidelity" told me he never heard ESC stand for anything other than SPARK control.

Also in the Gold Plus description they say they cover the OEM radio. What does that stand for: Optional Equipment Manufacturer.. perhaps?

This despicable business practice of redefining terms to weasel out of claims is in my opinion fraud.

I'm giving my dealer a week to straighten this out with his Fidelity sales rep. After that, I'll have to start legal action.

I just had to vent. This is deception at its worst. If they have the ability to redefine industry standard terms to suit themselves, then my $2285 only bought a worthless piece of paper.

paulroad

it cna take a month or so.

Nex time stop by here first and most everyone will tell you to only buy an EXCLUSIONARY plan. one that says "we cover everything except...."

I'd also take it up with your sales guy who sold you the plan.

MikeNSX

I bought the warranty in 06.

Quatroad

if they use any term or abbreviation without defining it and there is a good faith dispute as to the meaning/interpretation it should be construed against them. (At least that's how they taught us in 1L contracts class). Whoever drafts the agreement has the burden of clarifying the terms. That's why complex commercial documents often have pages of definitions, even of such commonly used words as "YOU" "US" "OUR" YOUR", etc.

Keep us posted, please.

Press

call your cc company...you still have dispute rights

paulroad

the ESC is the specific item.

Bought from an Audi dealer. ESC has a specific meaning to you both.

jbchinoca

let the vendor respond later. They never bothered.

MikeNSX

My reputable Audi dealer came through. With a little pressure from sales, Fidelity finally agreed that ESC means electronic stability control, not electronic spark control.

They covered the repair.

ESN

new meaning to an old phrase