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States say business operating illegally

Posted: 9:47 PM, May 26, 2016
Updated: 2016-05-27 13:31:34-04

A Valley man is fighting to get money he says he is owed from an online car warranty company.

Ali Othman, of Glendale, says he spent nearly $8000 on a three year plan with DirectBuyAutoWarranty.com.

A year into the contract he was ready to the sell the car, and get his prorated refund.

"I was at least expecting back at least $5000," he says.

But Ali says he couldn't get anyone to call him back.

"I called over 200 times," and he says eventually he outsmarted the system.

"I would trick the system to say I'm trying to buy a warranty versus talking about my existing warranty and they answered very fast," he says.

Finally, they agreed to a $2000 refund in 7 to 10 days. Six months later Ali says he is still waiting.

A check online would have shown the New Jersey based company had been in trouble for years.

Allegations range from   illegally selling plans in Washington State operating without a license in Oklahoma  to fraud in its own state of New Jersey .

The Better Business Bureau tells me it's received 13 complaints from Arizonans.

Just this month the Arizona Department of Insurance issued a cease and desist order .

It says Direct Buy Auto Warranty, and its executive director Albert Hakim,  had no business operating in the state in the first place.

The company now appears out of business.

Ali says he's learned a lesson.

"I'm going to go to a dealership that has all the licensing bonds insurance," he says.

Ali is working with the New Jersey Attorney General to try and get his money back.

Calls to the company were not returned.

If you're looking for a warranty check with your credit union or AAA for recommendations. And be sure to check them out online with  places like the Better Business Bureau .

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