A lively discussion has developed in response to our post about In re Automotive Professionals – see the post and comments here. Here is a selection from the latest installment (apparently contributed by a former API employee):
API sells auto warranties through dealerships, IWS sells warranties through credit unions. These warranties are advertised as being backed by “major insurers”. In fact, the vast majority of API’s contracts, and ALL of the IWS contracts are backed by Marathon Financial, a risk retention group. It is critical that you understand this, in order to follow what they are trying to do. Part of your warranty may have been the “GPR” or Guaranteed Price Refund. The GPR is a loser for the company… a real loser. And this has been known for over a year, actually closer to two years. Yet the company continued to sell GPR until 2/1/2007. And they shut down the business on 2/15/2007. More importantly they continue to happily sell GPR through IWS today, along with those Marathon backed contracts through www.iwsgroup.com.
I want to thank everyone who’s been contributing, and encourage others to join the discussion if you have any information to share with customers, employees, debtors, or creditors of API. We are happy to share all appropriate comments and responses here on the bk blog. – M. Hedayat, Editor, BK Blog