Filing Formal Complaint: 057 Technology Battery Plans

[CrankyGypsy]

As @ccalahan had mentioned in the other thread, I would also encourage current subscribers of the 057 Technology Battery Service Plan to contact the Tennessee Department of Consumer Affairs. I have outlined the best way to do this and hopefully make it convenient for you. After about one week, ccalahan received a letter back from the DCA stating they would do what they could to mediate the dispute. Obviously, the more of us that file a valid complaint, the more pressure the DCA will likely put on 057.

PURPOSE:
At his point, I think we are all entitled to a refund, be it partial or full. I argue that since some of us did not receive a Battery Monitoring Device, we should be entitled to a full refund. The latest terms did update to say (June 2023; at the very bottom) that the plan can be activated after 8wks, but the terms have always stated, and continue to state, that the BMD is required to activate the program and that a BMD must be installed at all times (barring momentary removal) otherwise the service plan will be voided. Arguably, no BMD = no contractual activation. The BMD was integral to my choice to go with the program as Hughes promised it could catch issues before the car became stranded. In any case, all of us with an active plan have always been entitled to a refund. Hughes is gone and has stated that all of his employees are also gone - my faith in the new company to produce a quality refurb capable of lasting more than a year is zero. I want my money back.

HOW TO:
Here is the link to the Tennessee Department of Consumer Affairs portal: TN DCA
This portal allows you to file a business complaint with the TN DCA for them to assist in making contact with 057 to mediate a solution to your problem.
The questionnaire takes about 30mins +/- depending how detailed you get. It will ask for the Respondent Name and Address - I used Keith Baker in Franklin TN (Williamson County) and 057's contact info of (855) 557-7057 and [email protected]. It will ask for the incident date (I used my purchase date); the transaction info (North Carolina; 11 Motor Vehicle Repairs & Warranties); a detailed statement of the facts (I mentioned it was a 2yr plan with a promised BMD that I never received, the company was sold and storefront shuttered, the new owner is not responding to inquiries, and a link to the forum thread); and what you want the company to do (I stated that I want the company to issue me a refund). There is an option on the incident page where you can click "yes" to add anyone with firsthand knowledge of the complaint - please feel free to DM me for my info. You can then add files: I suggest at least adding your invoice (I also added a much longer detailed statement of facts with partial screenshots of the terms) and maybe screenshots of your open portal tickets.

BACKSTORY:
For those still somehow unaware, Jason Hughes (wk057) stated that he sold 057 Technology in "early 2023" - the first week of June 2023 is when the North Carolina LLC ceased and the new Tennessee LLC was registered. Hughes continued to post on TMC (although extremely sporadic) with no mention of this fact until this info seemed to have accidentally leaked late 2023. The current company's primary owner appears to be Keith Baker of Franklin, TN. The 057 brick and mortar storefront has been shuttered and it seems none of the known plan subscribers have been able to reach the company via portal tickets, emails, or phone calls. The company appears to view this program as a nuisance and is hoping that we will quietly allow our subscriptions to expire. It seems that at least two TMC members claim they were unable to obtain help from the program with their failed batteries. I am unaware of anyone being able to get a refund.


Please feel free to DM me with questions. I have had a few members privately contact me on this matter after Hughes made indirect legal threats against the TMC community regarding the topic. Although I view these threats as invalid/meaningless/shameful, I can understand some members' hesitation to risk legal trouble and/or if they feel they might still have a valid service plan.

ATTACHED FILES:
057 Companies LLC's Business Information for DCA complaint

 

[ccalahan]

As @ccalahan had mentioned in the other thread, I would also encourage current subscribers of the 057 Technology Battery Service Plan to contact the Tennessee Department of Consumer Affairs. I have outlined the best way to do this and hopefully make it convenient for you. After about one week, ccalahan received a letter back from the DCA stating they would do what they could to mediate the dispute. Obviously, the more of us that file a valid complaint, the more pressure the DCA will likely put on 057.

PURPOSE:
At his point, I think we are all entitled to a refund, be it partial or full. I argue that since some of us did not receive a Battery Monitoring Device, we should be entitled to a full refund. The latest terms did update to say (June 2023; at the very bottom) that the plan can be activated after 8wks, but the terms have always stated, and continue to state, that the BMD is required to activate the program and that a BMD must be installed at all times (barring momentary removal) otherwise the service plan will be voided. Arguably, no BMD = no contractual activation. The BMD was integral to my choice to go with the program as Hughes promised it could catch issues before the car became stranded. In any case, all of us with an active plan have always been entitled to a refund. Hughes is gone and has stated that all of his employees are also gone - my faith in the new company to produce a quality refurb capable of lasting more than a year is zero. I want my money back.

HOW TO:
Here is the link to the Tennessee Department of Consumer Affairs portal: TN DCA
This portal allows you to file a business complaint with the TN DCA for them to assist in making contact with 057 to mediate a solution to your problem.
The questionnaire takes about 30mins +/- depending how detailed you get. It will ask for the Respondent Name and Address - I used Keith Baker in Franklin TN (Williamson County) and 057's contact info of (855) 557-7057 and [email protected]. It will ask for the incident date (I used my purchase date); the transaction info (North Carolina; 11 Motor Vehicle Repairs & Warranties); a detailed statement of the facts (I mentioned it was a 2yr plan with a promised BMD that I never received, the company was sold and storefront shuttered, the new owner is not responding to inquiries, and a link to the forum thread); and what you want the company to do (I stated that I want the company to issue me a refund). There is an option on the incident page where you can click "yes" to add anyone with firsthand knowledge of the complaint - please feel free to DM me for my info. You can then add files: I suggest at least adding your invoice (I also added a much longer detailed statement of facts with partial screenshots of the terms) and maybe screenshots of your open portal tickets.

BACKSTORY:
For those still somehow unaware, Jason Hughes (wk057) stated that he sold 057 Technology in "early 2023" - the first week of June 2023 is when the North Carolina LLC ceased and the new Tennessee LLC was registered. Hughes continued to post on TMC (although extremely sporadic) with no mention of this fact until this info seemed to have accidentally leaked late 2023. The current company's primary owner appears to be Keith Baker of Franklin, TN. The 057 brick and mortar storefront has been shuttered and it seems none of the known plan subscribers have been able to reach the company via portal tickets, emails, or phone calls. The company appears to view this program as a nuisance and is hoping that we will quietly allow our subscriptions to expire. It seems that at least two TMC members claim they were unable to obtain help from the program with their failed batteries. I am unaware of anyone being able to get a refund.


Please feel free to DM me with questions. I have had a few members privately contact me on this matter after Hughes made indirect legal threats against the TMC community regarding the topic. Although I view these threats as invalid/meaningless/shameful, I can understand some members' hesitation to risk legal trouble and/or if they feel they might still have a valid service plan.

ATTACHED FILES:
057 Companies LLC's Business Information for DCA complaint

Great job putting this all together man! Hopefully others will take the time to fill out the online complaint.

 

[Chris TX]

Would it be good to have a standardized request that we could all just submit?

 

[CrankyGypsy]

Would it be good to have a standardized request that we could all just submit?

The TN DCA isn't exactly set up for that. It's multiple pages of forms that require entry to move on to the next page. Unless you're talking about a petition type of thing? That would be convenient, but I think having multiple open cases that were individually submitted would make a bigger impression.

 

[CrankyGypsy]

I'm asking anyone who should have an active plan with 057 to privately message me. Also, if your plan expired but it expired post-June 2023, I would also like to hear from you. Any stories anyone is willing to share would be great, as well.

Here's an update regarding my complaint to the TN DCA: I got a quick response letter informing me that I had been assigned a Consumer Specialist for communication. 057 has 21days to respond to their notice. After March 28, I should contact my Specialist who will then send a second notice with a 14day expected turnaround. Following that, the Specialist will determine the next action - the DCA can only facilitate a resolution, not force 057 into one.

As I've told others, I'm not sure where this is heading. But right now, I would appreciate anyone in my situation to add weight to the inquiry as soon as convenient as there are necessary steps with timeframes.

 

[ccalahan]

Sadly as expected, they received no response from 057 Companies. They are sending a second notification to them.

 

[ccalahan]

Well, I received a response from 057 Companies LLC. They are holding zero responsibility and stated they are out of business.

 

[ccalahan]

I replied back telling them this is unacceptable and that they are lying about being a completely separate and unrelated company. We know this is false because Jason Hughes himself stated he remained on payroll as an engineer. If it was completely unrelated, they wouldn't need Jason to stay on as an employee!!!!

 

[gillmj24]

Should I still bother filing one too?

 

[MP3Mike]

I replied back telling them this is unacceptable and that they are lying about being a completely separate and unrelated company.

Does it really matter? Even if what they said is true, that would likely just mean that both separate businesses are out of business with no assets.

We know this is false because Jason Hughes himself stated he remained on payroll as an engineer. If it was completely unrelated, they wouldn't need Jason to stay on as an employee!!!!

I don't agree. Some of the assets they acquired could have been the employees. But again, none of this really matters as at this point the companies are gone.

 

[tga]

I worked for a startup in the 90's that pulled the same stunt. They sold the company after I and several others had left. A bunch of us called the senior leadership and asked "where's our payout?" The response was basically, "We didn't sell the company; they bought our assets, hired on the current employees and issued them stock/cash retention bonuses. Your stock is still valid, but you hold stock in a company that has no assets nor operations. Good luck with that."

 

[CrankyGypsy]

Should I still bother filing one too?

I would appreciate it. I'm inclined to think each DCA complaint adds more weight. If nothing else, it's an annoyance to 057. And the more we've poked @wk057 and the new owners, the more we've gotten.

 

[OrbiterTI4]

I wonder what would be the response to purchasers of the HV Service Plan after 057 Companies LLC acquired the assets from 057 Technologies LLC? I believe I fall in this camp, as my credit card statement clearly shows "057 Companies LLC".

I'm guessing a different-but-the-same answer of "you did have a HV Service Plan with us, but we have no money to give back, so tough."

 

[ccalahan]

I wonder what would be the response to purchasers of the HV Service Plan after 057 Companies LLC acquired the assets from 057 Technologies LLC? I believe I fall in this camp, as my credit card statement clearly shows "057 Companies LLC".

I'm guessing a different-but-the-same answer of "you did have a HV Service Plan with us, but we have no money to give back, so tough."

Wow. This really makes me mad. Especially after I got a response from them saying they had nothing to do with 057 Tech. That’s clearly some BS.

 

[gillmj24]

...my credit card statement clearly shows "057 Companies LLC".

Mine is the original "057 Technology, LLC" April 21 2023

 

[ucmndd]

I don't agree. Some of the assets they acquired could have been the employees. But again, none of this really matters as at this point the companies are gone.

As a vocal and ardent defender of Jason / 057old, how do you reconcile this outcome with the narrative that has been spun here for the past year that Hughes is a blameless victim of a business deal gone south?

 

[MP3Mike]

As a vocal and ardent defender of Jason / 057old, how do you reconcile this outcome with the narrative that has been spun here for the past year that Hughes is a blameless victim of a business deal gone south?

Nobody has said a business deal went south. We have two different stories, and I only have knowledge/experience with one of the parties, so I would tend to believe Jason that he sold the "business" including the service agreement liabilities. And that Julian is mis-representing things. (They obviously took over some of the liabilities as they were still operating out of the leased space Jason had.)

Or after thinking about it some more there is another possibility:

• Jason sold 057 Technologies to the new people, lock, stock, and barrel. (Liabilities and all.)
• They ran the business for a while, and after things were seen to be going south, the new people spun up 057 Companies and sold some of the assets to it.
  • Which could have been a way to try to make sure Jason couldn't get his IP back.

That theory totally matches both what Jason has said, as well as what Julian said.

We just don't know what really happened. (And we may never know.)

 

[BigNick]

We just don't know what really happened. (And we may never know.)

It sucks, but I think everyone involved here is fastened via an inclined plane wrapped helically around an axis.

From what I understand the plan sold for $2500 max for an out-of-warranty S (but was also discounted to $2000 for a "limited time".) $2000-$2500 isn't an insignificant amount of money - you could buy a set of 21-inch Michelin Pilot 4S tires for your car and still have change.

But IMO if you could afford a Model S, even a used one, a loss of $2000-$2500 shouldn't "break" you financially either. I know this will be an unpopular opinion and it is probably easy for me to state this due to having zero skin in this game, and (other than a few messages on the forum, but no transactions) no affiliation with either party.

At some point it is better to cut your losses and run. I'm sure an attorney would cost more than $2500 if you were to take one or both 057 parties to court and lose.

 

[Ostrichsak]

Just one of the many dark sides of extended warranties that nobody considers or talks about, aside from the fact that it's 85% profit to the extended warranty company. People always defend the idea of extended warranties as if they were defending their own mother if you dare challenge the idea though.

Going out of business when you are making 85 points of profit on every dollar taken in w/o any supply chain/manufacturing/production to worry about? It takes some pretty egregious mismanagement to run that model into the ground. This isn't the first time and it won't be the last.

As soon as I saw 057 peddling insurance I cringed because introducing insurance to any segment is never a positive. It wrecked the costs of healthcare and it does this to everything it touches. Don't believe me? Look at the cost of veterinarian care costs since the big box pet stores started offering pet insurance and that's a relatively new product that will only make things worse in the years to come. I felt that the battery repair service 057 offered to the community was an important one for the time and getting mixed up in the insurance side of things was an unnecessary distraction. Just one of the many times I would have preferred being wrong.

I feel for those who our SOL but paying for "peace of mind" comes with it's own set of risks to consider too. Hopefully others will learn from this to help avoid getting taken for a ride in the future.

I'll stick with self-insuring wherever not required by law as I have for decades now. The boogieman has never come to get me and the little things that go bump in the night are nowhere near the literal tens of thousands of dollars I've saved not paying premiums. Don't fall for the FUD that extended warranty companies push to try to scare you into giving them money.


Back on topic, I doubt you all that are affected by this will ever get anything out of it. Best to take the lesson and move on w/o putting too much more in terms of resources into it. You can't extract blood from a turnip and you'll waste all sorts of effort trying on something like this.

 

[tga]

It sucks, but I think everyone involved here is fastened via an inclined plane wrapped helically around an axis.