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ST. LOUIS, MO ( KPLR ) -
Missouri's attorney general is suing six local extended warranty companies for deceptive sales practices.
No one wants to worry about costly car repairs, especially in an older vehicle. Attorney General Chris Koster says that fear is leading consumers to purchase so-called bogus extended warranty's that are really "service contracts" with little if any value.
Critics have long argued extended warranty companies are a bad deal for consumers. The Better Business Bureau agrees, logging hundreds of complaints against these companies.
Koster filed a lawsuit Thursday against the six local companies. He says Missouri is at the center of the deception and he is determined to stop it.
His lawsuit against the six asks for full restitution to victims and the state and to pay civil penalties. Koster is also targeting the companies for an auto additive scam, which customers were sent a bottle of fluid for their cars transmission or engine. Customers were told they had to use the additive to validate the warranty.
Attorney General Chris Koster said,"If they later tried to cancel or receive a refund on the policy they are told the policy is non refundalble because they poured this into the engine. Many if not most extended auto warrantys are a hoax don't fall for them."
The Vehicle Protection Association, a trade group representing firms in the service contract industry says, it welcome Koster's campaign to improve the industry. It recognize the industry has been tarnished by the actions of some companies and they are implementing standards of conduct.
These are the companies targeted in the lawsuit:
No one wants to worry about costly car repairs, especially in an older vehicle. Attorney General Chris Koster says that fear is leading consumers to purchase so-called bogus extended warranty's that are really "service contracts" with little if any value.
Critics have long argued extended warranty companies are a bad deal for consumers. The Better Business Bureau agrees, logging hundreds of complaints against these companies.
Koster filed a lawsuit Thursday against the six local companies. He says Missouri is at the center of the deception and he is determined to stop it.
His lawsuit against the six asks for full restitution to victims and the state and to pay civil penalties. Koster is also targeting the companies for an auto additive scam, which customers were sent a bottle of fluid for their cars transmission or engine. Customers were told they had to use the additive to validate the warranty.
Attorney General Chris Koster said,"If they later tried to cancel or receive a refund on the policy they are told the policy is non refundalble because they poured this into the engine. Many if not most extended auto warrantys are a hoax don't fall for them."
The Vehicle Protection Association, a trade group representing firms in the service contract industry says, it welcome Koster's campaign to improve the industry. It recognize the industry has been tarnished by the actions of some companies and they are implementing standards of conduct.
These are the companies targeted in the lawsuit:
- National Dealers Warranty, Inc., a.k.a. StopRepairBills.com
- Warranty Activation Headquarters, Inc., a.k.a. Nationwide Automotive Protection
- Extended Warranty Corporation, Inc., a.k.a. Key Protection Group
- Dealers Warranty, LLC, a.k.a. MOGI
- U.S. Auto Warranty
- Dealer Warranty Services
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