Consumer Blog
Car "warranty" company put out of business
As part of AG Nixon's Operation Taken For a Ride, one of the targets of our lawsuits will get out of the business of selling extended service contracts for cars.
In this operation, our office sued six companies that send out those postcards that say YOUR AUTO WARRANTY IS ABOUT TO EXPIRE!
The settlement with Certified Auto Warranty Services requires the company to get out of the business entirely. To be precise, it forbids the company from being involved in the motor vehicle service contract, mechanical breakdown insurance, or automobile warranty business, including the selling of any such contract, insurance or warranty.
This the second of the six lawsuits to be settled. The first was a few weeks ago.
PS: The word warranty in the headline is in quotes because these companies are selling something that is not actually a warranty. This blog post explains the difference.
Technorati Tags: certified auto services, extended service contract, national dealers warranty, scams, shopping and spending, solicitation, extended warranty, moagoconsumer, consumer protection
Posted by on September 18, 2008 2:26 pm :: Comments (0) :: Permalink
