Avoid Automobile Service Contracts by Gold Key Warranty, LLC, d/b/a Consumer Care Direct Possibly Marketed by Endurance Warranty Services.

I am not certain whether I can recommend for anyone to take out an automobile service contract. Granted, I only see these contracts when the company is denying a claim, but they seem more adept at finding ways to deny or limit claims than granting them, so you may never get the worry free repairs that are promised.

The problem with Gold Key stems from the arbitration clause in their contract, that pretty much makes it impossible for you to obtain fair access to an arbitrator for relief. According to this arbitration clause, no matter where you live, the arbitration will be conducted by an arbitration administrator called Dispute Resolution Consultants in Tulsa Oklahoma. The hearing will be on the papers, so you do not get an opportunity to present any live testimony or argument. You have to pay all the arbitration fees and costs, and you have to pay the winner’s attorney fees and costs if you lose. These provisions are unconscionable and hopefully would not be upheld by a court, but that is the dispute resolution alternative this service contract company thinks you deserve. The company is making it so hard to dispute their denials that they can do whatever they want.

Most of the service contracts will have arbitration clauses. If you need to sue someone arbitration is not as good as being able to take someone to court, but at least you want an arbitration clause that is fair. Look for an arbitration clause that names the American Arbitration Association as an arbitration administrator. If you have to arbitrate, the AAA at least has ostensibly fair procedures. They will require the business to bear the lion's share of the cost of arbitration and, by their rules, require arbitrators to apply the same substantive laws that would be applied in court. If the arbitration clause has an opt-out provision, you should take advantage of it, and opt-out of the clause. You need to do that right away after entering into the service contract.

Gold Star service contracts are sometimes sold by an entity called Endurance Warranty Services, so people who receive them think they are buying a service contract from Endurance, when they are not. Endurance service contracts do not have this same unconscionable arbitration clause.

Here is the Gold Star arbitration clause, so you can read it yourself:

Arbitration Clause in service contract by Gold Star Warranty, LLC, d/b/a Consumer Care Direct, sometimes marketed by Endurance Warranty Services