Wisconsin man claims Sioux Falls auto warranty company a scam

Wisconsin man claims Sioux Falls company a scam
Published: Nov. 2, 2022 at 12:19 PM CDT
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SIOUX FALLS, S.D. (Dakota News Now) -With the business growth in the area, our community has a lot to be proud of. But when a possible scam is based in South Dakota, it’s cause for concern.

It was an online ad that caught the eye of Wisconsin resident Ayman Badwan of a warranty program claiming to help pay for car repairs.

“I saw the warranty company on Facebook,” said Badwan.

The website boasts associations with the South Dakota Chamber of commerce and other reputable companies. In 2020 Badwan purchased a $720 warranty for his 2010 Honda but didn’t get what he hoped for when the car needed a repair.

“We don’t want to cover it, so they said ‘we’ll cancel. It is way cheaper than we pay the, you know, the dealership.’ Then they told me that ‘we were going to reimburse you for it,” said Badwan.

He continued the calls and e-mails to Patriot Warranty.

“He said on the 15th of the month I will send you the check. never received it, you know,” said Badwan.

Our I-team took Badwan’s concerns to Jessie Schmidt, Vice President of the South Dakota Region of the Better Business Bureau.

“When you pull up this company’s business profile page, you’ll see that they have an F rating with us,” said Schmidt.

The complaints are mounting.

“They have over 200 and answered complaints. Well, obviously, that is a concern to us as the Better Business Bureau even one unanswered complaint is a concern,” said Badwan.

We tried their number and received a message from a cell phone company that the call could not be completed. Went to their address at the Lumber Exchange Building in the 8th and Railroad district on Reid Avenue, where Patriot Warranty is listed as a tenant of Regus office space. The receptionist confirmed Patriot Warranty but had not seen them.

The director of Regus in Minnesota says they don’t do background checks on their tenants and that Patriot Warranty is a mailbox client, paying their rent on time.

The Secretary of state’s office lists Patriot’s parent company as Advanced Resources LLC of Wyoming. The Wyoming secretary of state’s office told us, there is no current or past company with that name on record. The Wyoming address is another virtual office rental location.

Badwan told our I-Team he filed a complaint with the South Dakota Attorney General’s office last March and was told he would be added to the many names in their ongoing investigation.

Schmidt says the best way to protect yourself is to do your research.

“Go to bbb.org to look at a company prior to purchasing an extended warranty,” said Schmidt.

Badwan hopes to get his money back. In the meantime, he looks for every avenue to file a complaint.

“I still will leave my feedback as bad for them, so nobody gets fooled again,” said Badwan.

Our I-team contacted several patriot warranty e-mail addresses and found one working phone number to leave a message. We did not receive a return call.

The South Dakota Attorney General’s consumer protection division continues to investigate with 367 complaints regarding Patriot Warranty on file.