New Law in Missouri Addresses Auto Warranty and Contract Scams

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

Recently, SB 132, a bill before the Missouri Senate, was signed by Governor Jay Nixon. The bill addresses fraudulent motor vehicle warranties and contracts, reports The Wentzville Patch. The legislation also deals with vehicle licensing, the suspension and revocation of licenses, the registry of motor vehicles, and deceptive business practices. The new law takes effect January 1, 2012.

According to the article, motor vehicle warranty fraud is a big problem in Missouri. The attorney general’s office has received hundreds of complaints from consumers in the state who have been scammed by deceptive salespeople who are unregistered and blatantly lied to consumers about their vehicle warranties. The bill will allow consumers to confirm that they are buying an honest, and fair motor vehicle warranty and requires certain documentation to be filed at the time of purchase. Consumers must also receive a copy of the terms prior to the sale. Additionally, the bill bans companies or individuals from using false, misleading, or deceptive practices in relation to motor vehicle extended service contract programs. Restitution is available for victims of these practices. The bill also clarifies the rights of consumers if they decide to cancel a motor vehicle service contract.

The attorney general’s office worked extensively with the Service Contract Industry Council (SCIC) to create and implement new for the licensing of businesses and individuals that sell motor vehicle service contracts. The state has become a target for deceptive telemarketing and direct mail campaigns, which will be monitoring the sale of service contracts to make sure individuals and businesses are in compliance with the new law.

Businesses are required to treat consumers fairly and honestly, but unfortunately, many attempt to take advantage of consumers for their own gain. Lawyer Howard D. Silver can help you understand your legal rights if you believe you are a victim of deceptive business practices in California. Call (855) 341-2611 to get started with Mr. Silver now.


Posted Date: 
Wednesday, February 18, 2015