Six companies that sell extended vehicle warranties have been accused of using unfair and deceptive practices to peddle warranties that turn out to have little or no value.
The lawsuit says the six companies, all based in St. Charles County, used misleading letters, postcards and telemarketing techniques. It says the companies did not tell consumers they were not affiliated with auto dealers or manufacturers as their marketing materials might have suggested. Some of the companies are charged with violations of the state no-call law.
Attorney General Chris Koster thinks there are thousands of victims nationally. “The numbers of people who have been really burned in this is astronomical,” he says. Koster says his office has gotten more than 10,000 complaints from Missourians who say they are not getting what they bargained for.
He also says some of the companies tried to get around state insurance regulations by selling customers a bottle of a so-called engine additive that just happened to have a warranty attached to it. Koster says he’d never pour any of that stuff into his car. And he says the scheme left customers with no way to cancel the remainder of their warranties and get a prorated return of their payments.
A list of the companies being sued can be found at this link: