In September of 2008 I purchased an extended 5 year warranty on my 2005 Toyota Tundra truck. The cost was $2100 and appeared to be worth it based on all the different repairs that were covered.

I went almost a year before I had a problem with my Tundra. In September 2009 I took my truck to the local dealership and they diagnosed u-joint problems.

I followed the procedures in my warranty handbook and had the dealership file a claim for service. 24 hours later the claim came back as denied. Their reason was in the wording the dealership used in describing the u-joints as worn, not broken.

The dealership went ahead and made the repair and during the process they found the u-joints to be actually broken in pieces. After making the repair they refiled a claim with Direct Choice using the new information on broken not worn u-joints. This time the claim was denied because the work had already been done prior to approval.

I demanded a refund which they agreed to but only after a marketing fee of $250 and a prorated charge of $500 for the 11 months the "policy" was in effect. I have yet to receive any such refund.

In my opinion this warranty company Direct Choice, will do anything possible not to pay for a claim. They exist only to take money from new customers and when those customers are enraged into demanding a refund they charge a proration for the time the policy was in effect.

In effect this company borrowed $2500 from me interest free for 1 year and will only pay back $1750.