CarShield Class Action Lawsuit

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Yes. CarShield filed lawsuit against the Better Business Bureau (BBB) for their “F” rating and misrepresenting the company and ignores CarShield efforts to address concerns. And also it act as defendant in a class action lawsuit since 2017 due to driver’s privacy protection violation.

Why vehicle service contracts?

Paying for major car repairs can quickly get very expensive. That’s why many car owners turn to extended warranties, also known as vehicle service contracts. Customers pay a set monthly fee to cover repair costs down the road. But thousands of complaints have poured in across the country about those warranties.

What is CarShield?

It’s a vehicle service contract company that markets themselves as high level car protection for a low monthly cost. My friend, bailey joined car shield last September and pays $99 a month. So if his car needs major repairs, they’ll cover it. In December Bailey’s car had engine problems. His mechanic said it cost $1500 for a diagnosis. But his car shield policy doesn’t cover that fee. 

Bailey signed up with the VSC company after seeing their ads on TV. But admits he never read the contract.

CarShield’s contract exclusions

CarShield’s contract has a list of exclusions like diagnostic fees. But Bailey felt misled by the representative that signed him up for the service without mentioning the exclusions. After he couldn’t get the fee covered, Bailey didn’t get his engine fixed and was frustrated.

CarShield car insurance complaints

CarShield BBB complaints

CarShield has over 2500 complaints across the country filed with the better business bureau in the past three years. The company is based in St Louis. so all issues go to the BBB located there.

We saw in a three-year period between 2018 and 2020 that the number of complaints we received at the better business bureau in St Louis about vehicle service contract companies had nearly tripled.

Chris Thetford with the BBB says most complaints are customers feeling misled by car shields advertising. A consumer who has spent money on a contract is left with a car that needs repairs and still then has to pay for the repairs. Contracts like Mr Bailey’s won’t cover repairs for several reasons including if damage came from external causes or if a customer continues to drive their car after the issue began.

Many times customers don’t take the time to thoroughly read these exclusions. It was my fault for not really reading the book. CarShield tells news 19 they give customers a 30-day period to read the contract so they know what’s included before continuing payments.


CarShield lawsuit against BBB

As for their “F” rating with the better business bureau, car shield is suing the organization. The lawsuit claims the BBB is misrepresenting the company and ignores their efforts to address concerns. The BBB denies these claims.

If you’re considering getting car insurance, thoroughly reading the contract and weighing the option of starting a rainy day fund for repairs instead. Another good tip is to think about taking that contract to the person who currently repairs your car and saying first of all if I were to purchase this would your shop honor this contract and secondly what kind of experience have you had when repairing cars who have had these sorts of contracts. So be extra cautious and to read their vehicle service contracts before signing up.

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