Ryan Warranty Payments

[Mike Davis]

Hi Guys:

Just wondering how everybody is dealing with Ryan Warranty and their new payment systems. They sent a letter last fall stating that they were going to immediately start paying for parts at msrp -20%, I sent a letter back telling them that I won't honor this price structure and never heard back from them. Now they claim no knowledge of my response and will only PAY at their indicated levels, however they will authorize at higher amounts and then refuse to pay what they authorized. I have a couple of questions about this. First do they have the legal right to pay less than authorized, and secondly do they have any right to set their pricing levels at less than retail? It seems to me that once they have agreed to pay an amount they are legally obligated to pay the amount authorized and not a penny less, I do feel that they can at the time of authorization decline to pay any amount higher than they want to like any of us but to say they'll pay an amount and then refuse is if not illegal, unethical! It leaves our customers in the middle because what is your recourse at that time. What is anybody else doing in regards to this issue?

Thanks

Mike Davis