Is this considered dodgy deals?

I purchased a second-hand vehicle (terrible service, but this is not today's issue) and opted for an extended warranty (route 66 extended warranty). When I tried to claim from the warranty provider I was informed that the amount owing was not paid over to them (warranty provider) from Fury Mazda Pinetown. It took me some time and multiple calls to get this sorted out. but now i am only under warranty for the remainder of the time I took this out. Is this normal?

If you read this, it might be a good idea to call your provider.