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Repair shop and warranty company help customer after News 2 investigation

It's worse than nails on a chalkboard - your car makes a bad noise. George Smith found out his car's noise was a $7,000 problem.

GREENSBORO, N.C. — It’s a problem none of us like to have. Your car starts making a squealing sound, and the mechanic informs you it’s the transmission.

George Smith took his wife’s car to the dealership for a squealing sound, and sure enough, they told him the car needed a new transmission.

“They said the transmission needed repair and the timing chain was bad in the car,” Smith said.

The repair job on the Honda Juke was a bit more than $7,000. Smith immediately called his car warranty company to file a claim. A representative asked Smith to send in all the maintenance records for the car.

Smith gave the warranty company the receipts, but he did not keep up with all his oil change or tune-up receipts. A couple of weeks later, the warranty company denied the claim.

“Well, as a matter of fact, I was pissed off,” Smith said.

The representative told him they wouldn't pay for the repairs without every maintenance record. Later, Smith reached out to News 2, looking for answers. We had him send us information about the warranty and the repair estimate.

After reviewing each document, we contacted the dealership and the warranty company. We spoke with the general manager at the dealership and an executive with the warranty company.

“Once I mentioned I was getting News 2 involved and specifically you, (the dealership’s) attitude changed,” Smith said. 

The dealership went back to Smith and told him he didn't need a transmission repair, and the repairs would cost only $1,500. Smith was able to pay for the repairs but was still frustrated with the warranty company.

While the policy states you must present a thorough maintenance history, Smith said no one told him when he signed up for the policy. He was disappointed they denied the claim despite sending the warranty company majority of the maintenance records.

When we spoke with the warranty company about the issue, a representative refunded the money to Smith for the policy. The company sent an $800 check to Smith a few weeks later. 

“I’d like to thank News 2. Thank you,” Smith said.

They repaired the car after they refunded the money, it only cost about $700. Smith has since officially canceled the policy. He said he'll be more careful when reading contracts in the future.

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