Missouri AG forms task force over service contracts
Mar 12, 2010, 6:28 AM
JEFFERSON CITY, Mo. (AP)--Missouri Attorney General Chris Koster is creating a task force to work on scams involving auto service contracts.
Koster said Thursday the new task force would develop industry guidelines for selling auto service contracts. He says the contracts are the top complaint his office receives.
The attorney general's office says some marketers have lured consumers to buy the contracts through confusion and by suggesting that vehicle warranties were about to expire. Koster says consumers found the coverage essentially worthless because limits for vehicle repairs were low. Getting refunds was difficult because of restrictions on cancellations.
Others have been given an additive for their vehicles and told the warranty did not take effect until it was used. Refunds were then denied because the additive was used.