VACAVILLE (CBS13) — Car buyers often buy an extended warranty to protect themselves from costly repairs after the manufacture’s warranty expires. One company in particular even offered to refund the full price of the policy if the buyer never used it.

But now customers from coast to coast are outraged over what they’re calling a “rip off,” customer like Jeff Oyler. When Jeff bought his truck in 2005 he wanted to protect his hefty investment.

“Well it’s a $50,000 pickup truck and I was nervous, ya know;” nervous enough to drop another two grand on an extended warranty.

The deal sounded too good to pass up.

“Said if I didn’t use the warranty I’d get all the money refunded.”

And it stated that in the sales agreement.

His five year financing came to an end 2010 he never used the warranty and wanted his refund.

“So we did everything they asked and they sent us a letter saying we qualified for the refund.”

Signet Financial Group based in Vacaville sells the warranty and told him to expect the check in 6 to 8 weeks.

He never got that check at one point he says they told him a check was mailed to Jeff’s old address.

“Nothing has showed up and every time we call they push you into a voicemail.”

One of our producers went to signet’s headquarters in Vacaville. A man who claimed to be a realtor said he was putting Signet’s offices up for lease. Next, our team saw this guy who locked-up shop and left. We’ve confirmed that it is, in fact, Signet’s president Greg Lehman, and two staffers weren’t far behind.

“Can we talk to you just for a moment” asked our producer.

The staffers took off in their truck and had no interest in answering our questions. One look inside it’s clear Signet is no longer doing business here. Jeff isn’t the only consumer who says they’ve been ripped off. Hundreds of complaints online from across the country accuse signet of failing to follow the terms of their contract issuing refunds.

The Better Business Bureau revoked the company’s accreditation earlier this month giving signet an “F” rating. For Jeff this all cuts deep; he thinks he knows where his two thousand bucks are.

“…in signet’s pocket.”

We tried to reach Greg Lehman through Signet’s lawyer but never got a response. Some of the company’s dealership customers received an email that said: “it is with great regret that I must announce, effective immediately, Signet Financial Group Inc. is ceasing operations due to lack of capital necessary to support continued operations.”

Experts have some tips for those of you considering buying an extended warranty:

• Research your extended auto warranty while you are still shopping for a car. If you decide that you want a warranty, do not purchase the car and then shop for the warranty from a third-party agent.

• Avoid many expensive repairs by having your vehicle maintained. Change the fluids regularly, have the valves adjusted and keep your tires properly inflated. Read through the repair manual to determine the right service intervals.
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Once you purchase your extended auto warranty, be certain not to void it. For example, use the right grade of fuel.
• Go over the new or used car warranty contract with a fine-toothed comb, reading every clause carefully. You may find that even a bumper-to-bumper extended auto warranty contains significant exclusion clauses.
• Watch out for the wear and tear section. Make sure to ask the warranty provider how wear and tear is determined. If only the power-train is covered, you may be in trouble. Typically, the power-train (engine and transmission) of a vehicle is unlikely to fail. Some automatic transmissions may also be excluded–a major red flag!
• Check out consumer advocate magazines and websites to see how often your prospective vehicle needs to be repaired on average. If it needs frequent repairs and you plan on keeping your car for a long time, then an extended bumper-to-bumper auto warranty may be worth the price. If you only keep cars for a couple of years, then reconsider buying an expensive warranty on a quality vehicle.
• Research extended auto warranties offered by third-party agents. Different warranty providers may be more up front and willing to pay out than the dealer. Examine these warranties even more closely than a dealer warranty, though, as there are many unscrupulous agents out there.
• Think about establishing a repair savings fund or certificate of deposit instead of an extended auto warranty. A $3000 savings fund, for example, should be more than enough to cover a couple of years of repairs. Many new car warranties cost more than this amount.