KATV Channel 7 - The Spirit of Arkansas: Vehicle Services, Inc.

Vehicle Services, Inc.

When you buy a used car, repair costs are inevitable. You can pay out of pocket as you go, or you can buy an extended warranty or service contract. 

The worst that can happen is you pay for that protection and then have to pay for the repairs anyway.

That is the spot one Hot Springs family is in.  

The Edgar family bought a vehicle service contract.  

What they aren't buying are the reasons for why their repair isn't covered.

Janet Edgar knew immediately there was a major problem with her 2005 GMC Safari.

"All of a sudden I heard this loud noise and I got off and it just…I was unable to drive it," recalls Edgar.  "But I had no warning before.  I heard nothing."

When the Edgars bought their minivan it had 38,000 miles on it.

So they paid close to $3,000 for a five year, 100,000 mile service contract.

Even though their coverage doesn't expire until April, Missouri-based Vehicle Services, Inc. isn't going to pay.   

An independent inspector was hired and paid by Mechanical Breakdown Protection, Inc...a different Missouri-based company that handles the claims and underwriting of contracts sold by Vehicle Services Inc. 

Based on that inspection, Mechanical Breakdown Protection determined that the problem was caused by "…a failure to properly operate or care for the vehicle" and "…inadequate coolant, lubricants or fluids."

Mechanical Breakdown Protection CFO George Meiners tells KATV that there should have been warning signs as well…like a loud noise or spots on the driveway.

The Edgars say none of this is true, and fixing their van will cost $2,500 dollars.

"Whenever it's a large amount then they send somebody out and then they find a reason to where they're not going to pay," says Edgar.  "I kind of feel that's what they've done now. I might be wrong but that is what I feel."

Meiners told me by phone that his company has an A+ rating with the Better Business Bureau.

But Vehicle Services Inc., the company that sold the service contracts in the first place, has an F rating and was recently sued by the Missouri Attorney General for deceptive sales practices. 

Meiners says Mechanical Breakdown Protection, Inc. no longer does business with Vehicle Services, Inc.

Air date:  January 20^th, 2012

REPORTER NOTE:  Prior to the broadcast version of this story an email was sent to Mr. Meiners detailing some of the information that was to be presented in the report.  It offered the opportunity to make any additions or corrections.  It was not answered prior to broadcast. 

Mr. Meiners called after the report aired to inform us the email ended up in his junk mail and that he did have some suggestions...which have subsequently been made to the above online version of the story.  This explains why if you watch the story it is not exactly the same as what you read.