Attorney General Koster Reaches $22,500 Settlement

Photo courtesy of Creative Commons

Carsafe, LLC reached a settlement  that will restructure how Carsafe sells vehicle service contracts and will provide $10,000 in restitution as well as 12,500 to the state, after a joint prosecution by the Attorney General and the Department of Insurance.

Carsafe had previously been doing business under the name Dealer Preferred Warranties.

The judgment requires Carsafe to describe during sales phone calls the details of the written contract.The consent judgment also provides that if Carsafe completes the contract with the consumer in a telephone transaction, it is required to electronically record all transactions and must mail the written contract to the consumer within 3 business days.

Further, the consent judgment bars the illegal sale of vehicle repair coverage using the “additive scam,” in which companies delivered a bottle of ordinary oil additive in a scheme to avoid the consumer protections required under insurance and service contract laws.

Read the full release on the Attorney General’s website.

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