Good News from Equiguard
Off the net!
To Our Valued Customers:
I am pleased to report progress regarding Equiguard’s re- organization and claims payments.
Equiguard and Service Net Warranty executed and filed with the bankruptcy court an agreement where, upon bankruptcy court approval, Service Net would purchase the assets of Equiguard. Service Net currently provides warranty and extended service plan administration and services to the world’s most respected brands (for HVAC products and other products). Service Net is owned by HIG Capital, an international private investment firm with $7.5 Billion under management. More about Service Net and H.I.G Capital can be found at http://www.servicenet.com and http://www.higcapital.com.
Last week, the bankruptcy court approved the Temporary Claims Processing Agreement between Equiguard and Assurant. This settlement was driven by the lawsuit that Equiguard filed with the Court to prompt Assurant to pay service provider claims. As a result, we expect valid claims that are submitted pursuant to the previously communicated payment process to be paid by Assurant.
We appreciate your past and future business and thank you for your patience.
Craig Funke CEO
EQ was just bought out, yes. Before this and after the bankruptcy they guaranteed our payment within 30 days of receipt of invoice. They lied, again.
anyone that will have anything to do with equigard from now on is a fool!!! And they are setting themselves up for failure!
if the contract is before oct. 1 2004, you can go ahead and call it a loss.
those contracts are with different company, and they are denying everything.
i got a 7 year old evaporator coil that is leaking that they denied because they don't cover A coils that are over 5 years old. They have covered them in the past, and now they don't. It's a 10 year part and labor warranty, isn't it??? So guess who gets to eat this one??? anyone? And who knows how many more are going to pour in, as we have a lot of equigard customers...
i do know that no matter what they (equigard) do or say, we will not be using them as long as i am here.
How can they deny a coil that is covered by their policy? I've never had that trouble. They have paid us very well in the past. I expect once they get past this trouble, things will get back to normal.
If you guys aren't covering your products with some kind of extended warranty, your service manager (oh, that's you) better be prepared for unhappy customers calling getting big labor bills for fixing the junk we all are putting in these days. We don't make near the money on installs since things are so cutthroat so we have to make it on repair labor. But when you give a bill of (open forum, you know what we charge to change motors & boards) to a 2 year old unit's owner, you'll get an earful and your salespeople won't be seeing referrals.
we aren't cutting installation or replacement cost. least we haven't resorted to the likes thus far.
we have been going to some of our customers that went low bid and have made a bit of money correcting the poor poor installation, and incorrect installations.
i will show you where they told me they don't pay for A coil replacement on units over 5 years old...
go here.... http://www.equiguard.com/
then at the top second bullet in click on legal info
download terms and conditions is in adobe
go to page 3 of 4 and check out the third bullet under exclusions.
i told the assurant guy the same thing. we have never had problems with A coils in the past. Why now? he said, and i qoute
" that is why equigaurd is in financial trouble, because they didn't stick to thier polices and exclusions. I am going t oasign a case number to this so that when you call us back our people will see that i have already handled this issue. Thank you and have a nice day"
(then you hear click as the phone hangs up on you)
now i'm left holding the bag......
We sell extended labor warranties only when requested by the customer. I have never been pleased with them and tell our customers so. But if they insist, I add a front load to the price so I don't get burned. They pay slowly and often don't pay the full bill.
We have sold some Lennox (Service Net) extended warranties, and I am about fed up with them. I would rather lose the sale than use them again.
Carrier and Trane/American standard are the only extended warranties I will use in the future.
Remember, Air Conditioning begins with AIR.
Can't totally tell what they are saying on coils but seems to me they are talking about reusing existing coils when you sell a new outdoor unit. Looks like the first part of the statement says they'll cover a coil up to 2 years old at time of outdoor unit installation but only if coil is under 5 years since mfr. unless you buy an existing equipment warranty.
I think they're saying that an existing coil (that is not replaced) greater than 2 years old from the date of installation of the new equipment or greater than 5 years old from the date of manufacture are excluded. But not new coils that are part of the warranteed installation (which should be written into the contract).
Well , just sell Carrier Extended Warranties,they cover everthing! LOL
Same for all of them,just put your big boy pants on and deal with it!
Seriously,expect some issues with any extended waranty,from time to time!
they are saying that if you put it on a system with existing coil over 2yrs old is excluded. If you just put in a new OD unit. The indoor coil is excluded.
Originally Posted by BaldLoonie
Out the other side of thier mouth they are saying that if the coil is over 5yrs old from install or date of manufacture, then it is excluded.
also here is some more exciting news from camp rip off the contractors....
from my last entertaining phone call with them...
We are going to start asking for proof of the last 12 months of preventative maintenance or service with each service call sent to EQ or deny every claim. If you don't submit proof then you will be left holding the bag and having to go back to the customer to collect or eat the call.
yeah from time to time you're gonna have problems with all kinds of people paying you...
Originally Posted by dash
but this isn't a from time to time situation... EQ is deliberately leaving hundreds and probably thousands of contractors stuck with thier mess..
it probably won't be long before you start to see the TV commmercial about which law firm to contact, like the mesotheleoma commercials lol
equi-pay me then catch me if you can guard
The name says it all. Seems like 20 years ago the previous ext waranty (just like magic here for the money then gone) guard went under. Just in business long enough to get the kids college paid for. Wasnt the name International Warranty or World Warranty... something like that and they had a slide rule calculator to tell you what the warranty would cost.
That soured me and never sold an ext warranty except direct from mfg after that and did ok w it.
Differance is this time I install a new system (Bohn) for a new McDonnalds which bought all the stuff direct. Now Ive had 3 calls on the system (2 on the evap where wires were pinched way up in behind the fan motors AT THE FACTORY, 1 on condenser for fan blade out of balance FROM THE FACTORY). Did all this install in Aug 09 repairs in OCt 09 and now told to submit invoice for pennys on the dollar. Bet the guy talking to me on behalf of equiguard wasn't willing to work for pennies on the dollar. And bet he gets paid in a timely manner.
Im semi confident that McDonald Corporate will pickup the tab because it wasn't anything to do with installation.
Best advice Its more equitable to stay out of equiguard and anyone backing them.
Last edited by FarleyRedfield; 02-05-2010 at 02:21 AM.
The claims I am sending in now are being paid very fast. Now they just need to get the old claims paid.