Sahim v Dealers Warranty, LLC et al
Extended Warranty Company Hit with Class Action Suit
Complaint alleging that Dealers Warranty and Warranty Finance defrauded thousands of plaintiffs could affect many bad credit car loan customers.
Auto Credit Express believes that many aftermarket add-ons that dealers offer to their customers can be a waste of money. However, that in many circumstances a service contract that covers the entire length of the loan does make economic sense. These contracts, if priced fairly and with reasonable deductibles, can offer many bad credit car loan customers the peace of mind they need to avoid large, unforeseen repair bills.
Because these contracts are sold through retail car dealers, the customer also has a place they know they can get their car repaired at as well as someone they can talk to regarding disputes. If the customer is dissatisfied or pays the loan off early (if the service contract contains this provision), the customer also has a contact person in the business office where they can apply for a refund of any excess money spent on the contract.
A class action complaint was filed in the U.S. District Court for the Northern District of Illinois by Jonathan J. Sahim, individually and on behalf of other customers who have purchased so-called extended warranty vehicle service contracts from Dealers Warranty LLC (also known as mogi and Federal Auto Protection) and Warranty Finance LLC.
The complaint, itself, alleges that the companies schemed to extract hidden interest charges and penalties from consumers who cancel their service contracts before the term of coverage expires by hitting customers with large interest charges and marketing fees that were not spelled out in their contracts and by doing so violated both the Federal Truth In Lending Act and the Illinois Consumer Fraud Act.
If you are in the market for a service contract, do your homework and investigate various coverages and prices on the internet before you visit the dealer and make your purchase decision. By doing this, you will insure that the price you pay will be fair and the systems that are covered under the service contract policy are applicable to the kind of vehicle you are purchasing.
For more information please contact:
Steven L. Wittels.
Sanford Wittels & Heisler, LLP
1666 Connecticut Avenue, NW, Suite 310
Washington, District of Columbia 20009
Telephone: 646-723-2454
Fax: 646-723-2948
http://www.nydclaw.com
