In the past, I would never get an extended warranty.
But for modern vehicles, it's getting well worth it.

We are not talking worn out shocks or warped rotors.
On-board computers, load leveling suspensions, brake
force distribution systems, etc.  Not cheap stuff to
even diagnose, let alone the actual repair bill.

Thanks,
Scott

It is real.  But as usual, it's not the whole story.

No, not exactly.  In lieu of purchasing bonds, these warranty
companies can sign up with Risk Retention Groups (RRGs)
many of which are basically fly-by-night operations setup specifically
to get around the insurance laws.  By the time the attorney
generals and insurance comissioners of a particular State figure
out that a particular RRG is bogus and start revocation proceedings,
a lot of customers have already been screwed.

For the record, the 1 source auto warranty company that they
are talking about that was backed by a risk-rentention-group
named primeguard; Primeguard Insurance Company Inc RRG
failed on Dec 19, 2005.  Primeguard is also based in Hawaii,
that right there should tell you something.

1 source auto warranty, like a lot of these scammers, did a lot
of online sales.  It is likely the OP bought the warranty online.  The
problem with doing that is that the State Insurance comissioner
didn't get a chance to even look at this company to give it pemisison
to even sell in the OP's state in the first place.

Nothing.  The government agencies involved have already decertified
these folks, this is really a civil matter.  It is quite likely that no
actual laws
were broken.  It isn't 1SourceAutoWarrantys fault, they followed the
insurance laws by getting a RRG to back their policies, when that RRG
went bankrupt, that wasn't a failure caused by 1Source.  While you can
argue that Primeguard knew full well that they were simply engaging in a
ponzi scheme, Primeguard would probably argue that it was the fault of
companies like 1Source for submitting an unexpectedly large number
of claims.

This is why the States have insurance comissioners and it is why if
you do decide to buy insurance online, from an out-of-state insurance
company, that you must basically do what you already pay good tax
money for your state insurance comissioner to do - that is, investigate
them and their underwriting  companies.  There are sites like www.ambest.com
that do this that you can pay to get access to their ratings.

No, the OP is one of these people who saw a deal and went for
it without checking it out throughly.  Now he has a pig in a poke and
wants his money back.  I guess he's never bought a used car in his
life.

What the OP doesen't realize now is that he's getting setup to be
victimized twice.  Fiirst by the insurance scammers and second
by the lawyers he wants to go after the scammers.  Primeguard
listed assets of 3 million dollars at failure, and they probably have
a whole raft of creditors all lined up to get some of that.  Any
smart lawyer looking at this knows that payout on claims is probably
going to be a few cents on the dollar, and won't be worth his time,
so he is going to want fees upfront - and if the OP is stupid enough to
pay those fees, the OP is going to lose even more money.

Class action lawsuits are only worthwhile when the company being
sued is a going concern.  They are useless for bankrupt companies
because the bankruptcy court determines what gets paid out, you are
better off just bypassing the lawyers and going directly to the bankruptcy
court and registering
all your unpaid invoices and waiting to see if you get anything.  In
this case the OP cannot list as a creditor with the bankruptcy court
handling the Primeguard bankruptcy, only 1Source can, and 1Source
obviously decided as soon as it's RRG failed, to simply go out of
business, leaving behind a crowd of people like the OP.

What the OP needs to do is just understand that he paid a rather
expensive tuition bill for the University of Hard Knocks, and move
on with his life.  We've all done stupid stuff in our lives that has cost
us thousands of bucks, it's just part of life.

Ted