Attorney General's News Release

September 11, 2008

Nixon agreement with Certified Auto Warranty Services puts an end to company's high-pressure, misleading sales tactics

Jefferson City, Mo. - A Lenexa, Kan. business that sent misleading postcards and letters to consumers informing them that they had a limited time to purchase renewed, extended warranties for their vehicles will permanently cease selling such contracts under an agreement with Attorney General Jay Nixon. Nixon had sued Certified Auto Warranty Services, Inc., and five other businesses in March as part of "Operation Taken For A Ride," a crackdown on fraudulent solicitations for motor vehicle extended service contracts (MVESCs).

The lawsuit against Certified Auto Warranty Services alleged that the business failed to inform consumers that it was not affiliated with the dealers or manufacturers of the vehicles, or that it was actually selling motor vehicle extended service contracts instead of warranties. Because of the misrepresentations, Nixon said, some consumers purchased contracts they did not need.

In addition, Nixon said, Certified Auto Warranty Services promised a "100 percent Money Back Guarantee" to those consumers who purchased and canceled MVESCs, but then issued only partial refunds or no refunds at all.

"The common theme in the aggressive legal action we took in March was that consumers were frightened or misled into purchasing goods or services they didn't need, often at a cost of hundreds, or even thousands, dollars," Nixon said. "Today's agreement with one of those companies effectively prevents it from selling these contracts ever again."

Today's assurance of voluntary compliance prohibits Certified Auto Warranty Services from participating in any way in the motor vehicle service contract, mechanical breakdown insurance, or automobile warranty business, including the selling of any such contract, insurance or warranty. In addition, the agreement requires the business to pay $225 in restitution to one consumer.

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Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

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