Another Warranty Company Bites the Dust!
One of the largest aftermarket warranty providers has filed for bankruptcy, leaving warranty holders wondering who'll pay for repairs.
Automotive Professional's, Inc. bankruptcy has put thousands of vehicle warranties in limbo, reports the Houston Chronicle.
Automotive Professionals, Inc., one of the country's largest auto warranty claims companies, has suspended claims payments on 300,000 contracts sold nationwide, according to filings this week in Chicago bankruptcy court. According to the bankruptcy filings, Automotive Professionals began having serious financial problems in 2003 and 2004.
Six months ago, unpaid Automotive Professionals claims started piling up on car dealer balance sheets. Car dealerships will sometimes pick up the pieces after a service contract company or its insurer becomes insolvent, said Tim Meenan, General Counsel for the Service Contract Industry Council, which represents administrators and insurers.
This story was reported in DealersEdge.com .