Missouri-Based Warranty Company Fined Almost $25 Million for Violations

Serving Los Angeles, Riverside, Ventura, San Bernardino Counties & Nearby Areas of California

The Baltimore Sun reports that the Maryland Attorney General’s office has ordered a Missouri-based company and its owners to pay approximately $25 million in penalties and restitution to close to 17,000 customers in Maryland.

According to the article, consumers bought extended vehicle warranties that the company alleged would offer “bumper to bumper” repair coverage from 2005 through 2010. The company contacted consumers via letter or telephone notifying them that even though their existing warranty was about to expire, they could extend the expiration date for $2,000 to $4,000. According to the State Consumer Protection Division, however, the company was offering third-party repair contracts with serious exclusions and limitation. The company was also found to have violated both the Maryland Consumer Protection Act and Telephone Solicitations Act by inflating the extent of the warranties’ coverage and misleading consumers regarding the relationships the company had with automakers.

If you believe you have been the victim of wrong or unfair business practices, a consultation with a deceptive business practices attorney in California can help you understand what legal options are available to you, based upon the specifics of your case. To learn more about your rights, call (855) 341-2611 to speak with attorney Howard D. Silver.