Friday, November 25, 2011
Transcontinental execs get 5 years in scam
Jim Henry
Automotive News -- November 23, 2011 - 12:01 am ET
When is this au
•Finance & insurance coverage
Two former executives of Transcontinental Warranty Inc., a Florida company that sold extended-service contracts directly to consumers, were each sentenced to five years in jail for fraud and misleading sales practices.
Christopher D. Cowart, 50, president of Transcontinental, and Cris D. Sagnelli, 46, vice president, were sentenced on Oct. 31. In addition to the jail terms, they were sentenced to another five years of post-release supervision and fined $15,000 each.
The pair pleaded guilty in December 2010. The company is effectively out of business and stopped writing new contracts since 2009, a prosecutor said.
Direct-to-consumer sales potentially take business away from dealerships that sell extended-service contracts, according to the Service Contract Industry Council, a trade group based in Tallahassee, Fla.
Fraud cases also may hurt the reputation of extended-service contracts in general, the group said. There have been several other cases, including the high-profile bankruptcy last year of another direct marketer, U.S. Fidelis in Wentzville, Mo. A couple of former U.S. Fidelis executives also have been indicted on criminal charges.
According to court documents, automated "robo calls" from Transcontinental reached the attorney general of Indiana, a U.S. senator (on his personal cell phone), consumers who had registered on the "Do Not Call" list, and thousands of consumers and businesses who didn't even own cars.
Transcontinental often misled consumers into thinking they were dealing with the manufacturer that made their car, a prosecutor said.
Many consumers believed they were somehow "reinstating" or extending the original-equipment warranty, when in fact they were buying an extended-service contract from an unrelated third party, court documents said.
Prosecutors said millions of consumers received phone calls from Transcontinental, and "tens of thousands" of customers bought contracts as a result of the deceptive sales pitch, from a generic-sounding "Warranty Service Center."
You can reach Jim Henry at autonews@crain.com.
Read more: http://www.autonews.com/article/20111123/FINANCE_AND_INSURANCE/111129967
Tuesday, July 19, 2011
MISSOURI GOVENOR SIGNS SERVICE CONTRACT LAW
JEFFERSON CITY, Mo. — Legislation signed into law on July 7 by Missouri Governor Jay Nixon will target auto service contract businesses engaging in deceptive practices to sell extended service contract warranties.
“This is a troubled industry that has too many illegitimate players that have given the industry a bad name,” said Chris Koster, Missouri attorney general.
Senate Bill SB132, sponsored by Sen. Scott Rupp and co-authored by Koster’s Task Force on the Motor Vehicle Service Contract Industry, is set to take effect Jan. 1, 2011. It will require sellers of vehicle service contracts to provide a copy of the proposed contract to a consumer before a sale if the consumer requests to see it. It also will allow for a “free-look” period that allows a purchaser to cancel the contract within at least 20 business days after purchasing.
Service contract sellers also must provide full refunds minus any claims paid for cancellation, become licensed, and not use the word “warranty” when referring to the protection. Sellers also can’t falsely represent themselves as being affiliated with a manufacturer or dealer, or represent they have knowledge that a consumer’s warranty is expiring.
The Missouri Attorney General’s office has maintained 12 lawsuits against auto service contract telemarketers in the last year for the type of business practices addressed in the law. In addition, Koster’s office obtained criminal indictments in June against Darain Atkinson and his brother Cory Atkinson, who owned and operated U.S. Fidelis. The brothers were recently indicted on felony charges, including unlawful merchandising practices, stealing and insurance fraud.
Wednesday, May 11, 2011
A.G. SCHNEIDERMAN SUES TO STOP USED CAR LOAN BROKER THAT DECEIVED NUMEROUS MOHAWK VALLEY CONSUMERS
Car Loan Broker Illegally Required Mohawk Valley Customers to Purchase Unnecessary Extended Warranties to Qualify for Car Loan
Schneiderman: My Office will Hold This Company Responsible for Repeatedly Preying on Local Consumers Desperate for Transportation
UTICA - Attorney General Eric T. Schneiderman today announced that his office will file a lawsuit against One Source Networking, of Auburn, New York, for using deceptive business practices against hundreds of Mohawk Valley consumers. The company and its owner, Sara Fagan, are accused of repeatedly and persistently deceiving customers by requiring them to purchase an extended warranty in order to qualify for a vehicle loan. The lawsuit is seeking restitution and civil penalties.
"One Source Networking took advantage of desperate Mohawk Valley consumers who needed cars to get to and from work," said Attorney General Schneiderman. "This company has taken customers for a ride, repeatedly deceiving them into paying more for loans than necessary. The message we are sending today is clear: If you're an unscrupulous business who preys on an unsuspecting public, this office will go after you."
When customers with poor or limited credit history sought to purchase vehicles at used car dealerships in the Mohawk Valley or Central New York regions, the dealers would frequently refer them to one of a number of financing companies, including One Source Networking. One Source Networking, is a third party car loan broker. On its website it advertises that it provides "fast, easy, no hassle credit for consumers who have been bankrupt or have poor credit."
The Attorney General's investigation over the course of several months uncovered hundreds of instances where One Source loan processors falsely stated to customers that loans could only be obtained if they also purchased an extended warranty. One Source charged $1,995 for non-four wheel drive vehicles or $2,495 for four-wheel drive vehicles when the actual cost of the warranty was significantly less. This deceptive practice unnecessarily inflated the size of the loan, the amount of the sales tax to be paid on the loan, and, in many cases, the amount of time it would take pay the loan back. In a few instances where consumers refused to purchase the extended warranty, the company imposed a previously undisclosed $495 fee.In addition, the company falsely claimed that the fee was imposed by, and would be paid to, the car dealership that would not complete the sale without payment.
A young couple from Oneida County, newly engaged and just starting out was overcharged by more than $2,000.
A medical intern from Oneida County, who works long hours and various shifts, needed a reliable car to and from the medical facility where she is employed. She is now paying several thousand dollars more than she had agreed to.
A marina-mechanic from Madison County, whose place of employment is 50 miles away at Skaneateles Lake needed a car to get to and from work each day. He is now paying at least $2,000 over the original price of his vehicle.
The case against One Source Networking is being handled by Assistant Attorney General In-Charge of the Utica Regional Office, Joel Marmelstein, with the assistance of Investigator Joseph Kelly.
Schneiderman: My Office will Hold This Company Responsible for Repeatedly Preying on Local Consumers Desperate for Transportation
UTICA - Attorney General Eric T. Schneiderman today announced that his office will file a lawsuit against One Source Networking, of Auburn, New York, for using deceptive business practices against hundreds of Mohawk Valley consumers. The company and its owner, Sara Fagan, are accused of repeatedly and persistently deceiving customers by requiring them to purchase an extended warranty in order to qualify for a vehicle loan. The lawsuit is seeking restitution and civil penalties.
"One Source Networking took advantage of desperate Mohawk Valley consumers who needed cars to get to and from work," said Attorney General Schneiderman. "This company has taken customers for a ride, repeatedly deceiving them into paying more for loans than necessary. The message we are sending today is clear: If you're an unscrupulous business who preys on an unsuspecting public, this office will go after you."
When customers with poor or limited credit history sought to purchase vehicles at used car dealerships in the Mohawk Valley or Central New York regions, the dealers would frequently refer them to one of a number of financing companies, including One Source Networking. One Source Networking, is a third party car loan broker. On its website it advertises that it provides "fast, easy, no hassle credit for consumers who have been bankrupt or have poor credit."
The Attorney General's investigation over the course of several months uncovered hundreds of instances where One Source loan processors falsely stated to customers that loans could only be obtained if they also purchased an extended warranty. One Source charged $1,995 for non-four wheel drive vehicles or $2,495 for four-wheel drive vehicles when the actual cost of the warranty was significantly less. This deceptive practice unnecessarily inflated the size of the loan, the amount of the sales tax to be paid on the loan, and, in many cases, the amount of time it would take pay the loan back. In a few instances where consumers refused to purchase the extended warranty, the company imposed a previously undisclosed $495 fee.In addition, the company falsely claimed that the fee was imposed by, and would be paid to, the car dealership that would not complete the sale without payment.
A young couple from Oneida County, newly engaged and just starting out was overcharged by more than $2,000.
A medical intern from Oneida County, who works long hours and various shifts, needed a reliable car to and from the medical facility where she is employed. She is now paying several thousand dollars more than she had agreed to.
A marina-mechanic from Madison County, whose place of employment is 50 miles away at Skaneateles Lake needed a car to get to and from work each day. He is now paying at least $2,000 over the original price of his vehicle.
The case against One Source Networking is being handled by Assistant Attorney General In-Charge of the Utica Regional Office, Joel Marmelstein, with the assistance of Investigator Joseph Kelly.
Tuesday, May 10, 2011
Auto Warranties, Routine Maintenance, and Repairs: Is Using the Dealer a Must?
If you own a car, you know how important it is to keep up with routine maintenance and repairs. But can a dealer refuse to honor the warranty that came with your new car if someone else does the routine maintenance or repairs?
The Federal Trade Commission (FTC), the nation's consumer protection agency, says no. In fact, it's illegal for a dealer to deny your warranty coverage simply because you had routine maintenance or repairs performed by someone else. Routine maintenance often includes oil changes, tire rotations, belt replacement, fluid checks and flushes, new brake pads, and inspections. Maintenance schedules vary by vehicle make, model and year; the best source of information about routine scheduled maintenance is your owner's manual.
What is a warranty?
A warranty is a promise, often made by a manufacturer, to stand behind its product or to fix certain defects or malfunctions over a period of time. The warranty pays for any covered repairs or part replacements during the warranty period.
Do I have to use the dealer for repairs and maintenance to keep my warranty in effect?
No. An independent mechanic, a retail chain shop, or even you yourself can do routine maintenance and repairs on your vehicle. In fact, the Magnuson-Moss Warranty Act, which is enforced by the FTC, makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work. That said, there may be certain situations where a repair may not be covered. For example, if you or your mechanic replaced a belt improperly and your engine is damaged as a result, your manufacturer or dealer may deny responsibility for fixing the engine under the warranty. However, according to the FTC, the manufacturer or dealer must be able to demonstrate that it was the improper belt replacement — rather than some other defect — that caused the damage to your engine. The warranty would still be in effect for other parts of your car.
Will using 'aftermarket' parts void my warranty?
No. An 'aftermarket' part is a part made by a company other than the vehicle manufacturer or the original equipment manufacturer. Simply using an aftermarket part does not void your warranty. The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket part. Still, if it turns out that the aftermarket part was itself defective or wasn't installed correctly, and it causes damage to another part that is covered under the warranty, the manufacturer or dealer has the right to deny coverage for that part and charge you for any repairs. The FTC says the manufacturer or dealer must show that the aftermarket equipment caused the need for repairs before denying warranty coverage.
Tips To Avoid Warranty Issues
Here's how to get the most out of your vehicle's warranty:
Read your warranty. Often bundled with your owner's manual, the warranty gives a general description and specific details about your coverage. If you have misplaced your owner's manual, look for it online. Check the "Owners" section of your manufacturer's website.
Be aware of your warranty period. If problems arise that are covered under the warranty, get them checked out before the warranty expires.
Service your car at regular intervals. This is a good idea in any case. But for the sake of keeping your warranty intact, follow the manufacturer's recommended service schedule. Details are in your owner's manual.
Keep all service records and receipts, regardless of who performs the service. This includes oil changes, tire rotations, belt replacement, new brake pads, and inspections. Create a file to keep track of repairs; it will come in handy if you have to use your warranty. If you ever have a warranty claim and it appears that you did not maintain your vehicle, your claim could be denied.
Complain. If you think a dealer's service advisor denied your warranty claim unfairly, ask to speak with a supervisor. If you still aren't satisfied, contact the manufacturer or go to another dealer. You also may wish to file a complaint with your state Attorney General, local consumer protection office, local Better Business Bureau, or the FTC.
For More Information
Visit ftc.gov for free information on buying, financing, leasing, renting and maintaining vehicles.
The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them.
To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
The Federal Trade Commission (FTC), the nation's consumer protection agency, says no. In fact, it's illegal for a dealer to deny your warranty coverage simply because you had routine maintenance or repairs performed by someone else. Routine maintenance often includes oil changes, tire rotations, belt replacement, fluid checks and flushes, new brake pads, and inspections. Maintenance schedules vary by vehicle make, model and year; the best source of information about routine scheduled maintenance is your owner's manual.
What is a warranty?
A warranty is a promise, often made by a manufacturer, to stand behind its product or to fix certain defects or malfunctions over a period of time. The warranty pays for any covered repairs or part replacements during the warranty period.
Do I have to use the dealer for repairs and maintenance to keep my warranty in effect?
No. An independent mechanic, a retail chain shop, or even you yourself can do routine maintenance and repairs on your vehicle. In fact, the Magnuson-Moss Warranty Act, which is enforced by the FTC, makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work. That said, there may be certain situations where a repair may not be covered. For example, if you or your mechanic replaced a belt improperly and your engine is damaged as a result, your manufacturer or dealer may deny responsibility for fixing the engine under the warranty. However, according to the FTC, the manufacturer or dealer must be able to demonstrate that it was the improper belt replacement — rather than some other defect — that caused the damage to your engine. The warranty would still be in effect for other parts of your car.
Will using 'aftermarket' parts void my warranty?
No. An 'aftermarket' part is a part made by a company other than the vehicle manufacturer or the original equipment manufacturer. Simply using an aftermarket part does not void your warranty. The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket part. Still, if it turns out that the aftermarket part was itself defective or wasn't installed correctly, and it causes damage to another part that is covered under the warranty, the manufacturer or dealer has the right to deny coverage for that part and charge you for any repairs. The FTC says the manufacturer or dealer must show that the aftermarket equipment caused the need for repairs before denying warranty coverage.
Tips To Avoid Warranty Issues
Here's how to get the most out of your vehicle's warranty:
Read your warranty. Often bundled with your owner's manual, the warranty gives a general description and specific details about your coverage. If you have misplaced your owner's manual, look for it online. Check the "Owners" section of your manufacturer's website.
Be aware of your warranty period. If problems arise that are covered under the warranty, get them checked out before the warranty expires.
Service your car at regular intervals. This is a good idea in any case. But for the sake of keeping your warranty intact, follow the manufacturer's recommended service schedule. Details are in your owner's manual.
Keep all service records and receipts, regardless of who performs the service. This includes oil changes, tire rotations, belt replacement, new brake pads, and inspections. Create a file to keep track of repairs; it will come in handy if you have to use your warranty. If you ever have a warranty claim and it appears that you did not maintain your vehicle, your claim could be denied.
Complain. If you think a dealer's service advisor denied your warranty claim unfairly, ask to speak with a supervisor. If you still aren't satisfied, contact the manufacturer or go to another dealer. You also may wish to file a complaint with your state Attorney General, local consumer protection office, local Better Business Bureau, or the FTC.
For More Information
Visit ftc.gov for free information on buying, financing, leasing, renting and maintaining vehicles.
The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them.
To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Tuesday, April 12, 2011
Automotive Extended Warranty Hub Launches Redesigned Website on the Go Daddy Platform
Posted on: Thursday, 7 April 2011, 00:00 EST
The Extendedwarrantyhub.com, the authorized commercial arm of the Automotive Consumer Warranty Institute (ACWII)), launches its redesigned retail website on the Go Daddy eCommerce platform. Automotive extended warranty shoppers will find warranty options on extendedwarrantyhub.com with simplified navigation. Whiteassociatesms.com, the strategy and content provider, collaborated with the HUB site to provide a stronger online retail channel.
Bloomfield Hills, MI (PRWEB) April 7, 2011
The Extended Warranty Hub launches its newly redesigned website on the Go Daddy eCommerce platform. With a straight forward presentation of ACWII certified extended warranty product options, the new Hub website speaks to the honesty and peace of mind that Extended Warranty Hub shoppers will achieve from Ford, Toyota, Nissan , Protective and Honda brands.
ACWII is a driver for ethical warranty consumerism. They enable informed transparent decision making and purchase of warranty products and services for consumers from companies that place the consumer first in their processes. They provide evaluation and recommendations of best practice and favored warranty products. The Institute manages this process by providing reasonable and legitimate consumer warranty solutions and provider options. ACWII is part of a larger movement within the automotive warranty industry, which means that they ally with corporations that have proven consumer driven KPIs (key performance indicators).
“Our members not only wish to be seen as working ethically and improving the standards of the warranty industry…but actually are,” said David Matthews Hub spokesperson.
David mentioned, “ACWII recommends affordable, quality and transparent vehicle warranty products from financially sound providers. Warranty extended providers recommended by the Institute are presented to consumers through the HUB. It has become an important resource for in market consumers and provides legitimate consumer warranty solutions and provider options.”
The new Extendedwarrantyhub.com features improvements to the overall design and functionality of the site. Among the most noticeable upgrades customers will experience are the user-friendly navigation, streamlined “Quick Quote” process, and simplified product pages that contain more relevant information and better images and include;
Toyota factory – backed plans offer several Factory – backed Vehicle Service Agreements which include - Platinum, Gold and Power train.
Nissan Security +Plus Protection offers a wide array of coverage for Nissan vehicles.
Protective Advantage Vehicle Protection Plan offers the Advantage Premier Plan in the Protective Family of Service Contracts.
Ford Extended Service Plans (ESP) offers 4 plans to cover visitor’s needs and coverage concerns. These coverages go all the way from the most comprehensive plan- Premium Care to only a policy to cover major power train components- Power Train Care.
GMPP, the General Motors Protection Plans offers 3 different product coverages. Major Guard covers virtually every component of a vehicle in the event of mechanical failure beyond the warranty period…even if it results from wear and tear with this premium vehicle service contract.
Honda Care vehicle service contracts cover both new and used Honda, Certified Honda or non-Honda vehicles. Unlike many vehicle service contracts, Honda's exclusive factory-backed protection package is transferable in select states.
“Our improved creative, user interface and presentation of member products in a compelling manner has already produced a large percentage increase in conversion rates,” said David Matthews.
Visitors to the extendedwarrantyhub.com will find it easier to shop with simplified navigation. Along with a simplified one-page and secure checkout, prospects have access to order management tools that allow them to see recently certified products, check the status of an order(s), manage personnel and vehicle contact information and easily check their agreement transaction.
ACWII’s member base is growing along with it satisfied customer base. With major automotive brands and providers looking for inclusion as certified members, the future looks bright for customers who require an honest source of research and tips in order to evaluate their extended warranty purchase options.
About ACWII.com
The Institute has over 55 years of combined automotive corporate, wholesale and retail operational experience. They are proven leaders in consumer sales and marketing, warranty operations, customer service and dealer operations. ACWII is a consumer resource that enables consumers to make the right purchase decision about extended vehicle warranties.
ACWII evaluates and then recommends affordable, quality and transparent vehicle warranty products from financially sound providers. Extended warranty providers recommended by the Institute are presented to consumers in the HUB.
For more information visit; http://www.acwii.com http://www.extendedwarrantyhub.com
About WhiteassociatesMS.com
"White Associates, as a enterprise partner with ACWII, is at its core an accomplished integrated digital marketer that has expanded its business to help global brands develop their direct-to-consumer and B to B channel strategies,” said David Matthews. “They have provided a best practices approach in strategy, social and site building that has led to our incredibly strong online channel.”
For more Information visit: http://www.whiteassociatesMS.com
# # #
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb
Source: prweb
The Extendedwarrantyhub.com, the authorized commercial arm of the Automotive Consumer Warranty Institute (ACWII)), launches its redesigned retail website on the Go Daddy eCommerce platform. Automotive extended warranty shoppers will find warranty options on extendedwarrantyhub.com with simplified navigation. Whiteassociatesms.com, the strategy and content provider, collaborated with the HUB site to provide a stronger online retail channel.
Bloomfield Hills, MI (PRWEB) April 7, 2011
The Extended Warranty Hub launches its newly redesigned website on the Go Daddy eCommerce platform. With a straight forward presentation of ACWII certified extended warranty product options, the new Hub website speaks to the honesty and peace of mind that Extended Warranty Hub shoppers will achieve from Ford, Toyota, Nissan , Protective and Honda brands.
ACWII is a driver for ethical warranty consumerism. They enable informed transparent decision making and purchase of warranty products and services for consumers from companies that place the consumer first in their processes. They provide evaluation and recommendations of best practice and favored warranty products. The Institute manages this process by providing reasonable and legitimate consumer warranty solutions and provider options. ACWII is part of a larger movement within the automotive warranty industry, which means that they ally with corporations that have proven consumer driven KPIs (key performance indicators).
“Our members not only wish to be seen as working ethically and improving the standards of the warranty industry…but actually are,” said David Matthews Hub spokesperson.
David mentioned, “ACWII recommends affordable, quality and transparent vehicle warranty products from financially sound providers. Warranty extended providers recommended by the Institute are presented to consumers through the HUB. It has become an important resource for in market consumers and provides legitimate consumer warranty solutions and provider options.”
The new Extendedwarrantyhub.com features improvements to the overall design and functionality of the site. Among the most noticeable upgrades customers will experience are the user-friendly navigation, streamlined “Quick Quote” process, and simplified product pages that contain more relevant information and better images and include;
Toyota factory – backed plans offer several Factory – backed Vehicle Service Agreements which include - Platinum, Gold and Power train.
Nissan Security +Plus Protection offers a wide array of coverage for Nissan vehicles.
Protective Advantage Vehicle Protection Plan offers the Advantage Premier Plan in the Protective Family of Service Contracts.
Ford Extended Service Plans (ESP) offers 4 plans to cover visitor’s needs and coverage concerns. These coverages go all the way from the most comprehensive plan- Premium Care to only a policy to cover major power train components- Power Train Care.
GMPP, the General Motors Protection Plans offers 3 different product coverages. Major Guard covers virtually every component of a vehicle in the event of mechanical failure beyond the warranty period…even if it results from wear and tear with this premium vehicle service contract.
Honda Care vehicle service contracts cover both new and used Honda, Certified Honda or non-Honda vehicles. Unlike many vehicle service contracts, Honda's exclusive factory-backed protection package is transferable in select states.
“Our improved creative, user interface and presentation of member products in a compelling manner has already produced a large percentage increase in conversion rates,” said David Matthews.
Visitors to the extendedwarrantyhub.com will find it easier to shop with simplified navigation. Along with a simplified one-page and secure checkout, prospects have access to order management tools that allow them to see recently certified products, check the status of an order(s), manage personnel and vehicle contact information and easily check their agreement transaction.
ACWII’s member base is growing along with it satisfied customer base. With major automotive brands and providers looking for inclusion as certified members, the future looks bright for customers who require an honest source of research and tips in order to evaluate their extended warranty purchase options.
About ACWII.com
The Institute has over 55 years of combined automotive corporate, wholesale and retail operational experience. They are proven leaders in consumer sales and marketing, warranty operations, customer service and dealer operations. ACWII is a consumer resource that enables consumers to make the right purchase decision about extended vehicle warranties.
ACWII evaluates and then recommends affordable, quality and transparent vehicle warranty products from financially sound providers. Extended warranty providers recommended by the Institute are presented to consumers in the HUB.
For more information visit; http://www.acwii.com http://www.extendedwarrantyhub.com
About WhiteassociatesMS.com
"White Associates, as a enterprise partner with ACWII, is at its core an accomplished integrated digital marketer that has expanded its business to help global brands develop their direct-to-consumer and B to B channel strategies,” said David Matthews. “They have provided a best practices approach in strategy, social and site building that has led to our incredibly strong online channel.”
For more Information visit: http://www.whiteassociatesMS.com
# # #
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb
Source: prweb
Wednesday, March 23, 2011
Victims of Transcontinental's warranty fraud get clearance to file refund claims
The Federal Trade Commission has notified 11,780 victims of illegal automated "robocalls" made on behalf of Transcontinental Warranty that they are entitled to file claims for a share of $3 million in refunds for the bogus vehicle warranties they bought.
The notices represent the latest government measure in criminal and civil actions against Voice Touch Inc., Transcontinental and related entities and individuals. Both Voice Touch and Transcontinental are Florida companies.
In late December, the president and vice president of Transcontinental pleaded guilty to federal fraud charges in Illinois. They are scheduled for sentencing March 21.
In the criminal prosecution, the Justice Department charged that Transcontinental misled consumers into believing that the company represented automakers. The company took in about $40 million from more than 15,000 customers from 2007 through 2009, when it was placed in receivership.
According to the FTC, Transcontinental hired Voice Touch "to bombard U.S. consumers with millions of deceptive prerecorded calls in 2009," generating a "flood of complaints to the agency."
The FTC's lawsuit against Voice Touch accused the company of "a massive illegal enterprise that is plaguing tens of millions of consumers with prerecorded telemarketing calls made in direct and blatant violation of the Do Not Call laws."
Consumers were tricked into purchasing extended service contracts "under the guise that they were extensions of original vehicle warranties," according to the FTC.
Voice Touch made similar robocalls for other companies, but the claims notices went only to those who bought extended service contracts from Transcontinental.
The FTC negotiated civil settlements that permanently prohibit the companies from telemarketing and making similar prerecorded calls.
Voice Touch, its principal and its affiliates agreed to pay about $3 million for refunds, the FTC said. The amount an individual consumer receives will depend on the total amount available and the number of claims.
The FTC set a 60-day deadline for consumers to file their forms with Analytics Inc., a claims administrator.
The notices represent the latest government measure in criminal and civil actions against Voice Touch Inc., Transcontinental and related entities and individuals. Both Voice Touch and Transcontinental are Florida companies.
In late December, the president and vice president of Transcontinental pleaded guilty to federal fraud charges in Illinois. They are scheduled for sentencing March 21.
In the criminal prosecution, the Justice Department charged that Transcontinental misled consumers into believing that the company represented automakers. The company took in about $40 million from more than 15,000 customers from 2007 through 2009, when it was placed in receivership.
According to the FTC, Transcontinental hired Voice Touch "to bombard U.S. consumers with millions of deceptive prerecorded calls in 2009," generating a "flood of complaints to the agency."
The FTC's lawsuit against Voice Touch accused the company of "a massive illegal enterprise that is plaguing tens of millions of consumers with prerecorded telemarketing calls made in direct and blatant violation of the Do Not Call laws."
Consumers were tricked into purchasing extended service contracts "under the guise that they were extensions of original vehicle warranties," according to the FTC.
Voice Touch made similar robocalls for other companies, but the claims notices went only to those who bought extended service contracts from Transcontinental.
The FTC negotiated civil settlements that permanently prohibit the companies from telemarketing and making similar prerecorded calls.
Voice Touch, its principal and its affiliates agreed to pay about $3 million for refunds, the FTC said. The amount an individual consumer receives will depend on the total amount available and the number of claims.
The FTC set a 60-day deadline for consumers to file their forms with Analytics Inc., a claims administrator.
Wednesday, March 9, 2011
How to Steer Clear of Auto Warranty Scams
FTC Consumer Alert
The Federal Trade Commission (FTC), the nation’s consumer protection agency, urges you to be skeptical of mail and phone calls warning that the warranty on your car is about to expire. The companies behind the mail and calls may give the impression they represent your car dealer or manufacturer. With phrases like Motor Vehicle Notification, Final Warranty Notice or Notice of Interruption, they are trying to make the offer seem urgent — and to get you to call a toll-free number for more information.
More than likely, these pitches are from unrelated businesses that want to sell you extended warranties — more accurately known as service contracts — that often sell for hundreds or thousands of dollars. If you respond to a call from a business pitching so-called extended warranties, you’re likely to hear high-pressure sales tactics, as well as demands for personal financial information and a down payment, before you get any details about the service contract. And if you buy a service contract, you may find that the company behind it won’t be in business long enough to fulfill its commitments.
Protect Yourself
So how can you steer clear of scam auto warranty offers? The FTC says:
* If you get mail or phone calls about renewing your vehicle warranty, don’t take the information at face value. Your vehicle’s warranty may be far from expiring — or it may have expired already. If you have a question about your warranty, check your owner’s manual, call the dealer who sold you the car or contact the vehicle manufacturer.
* Be alert to fast talkers. Telemarketers pitching auto warranties often use high-pressure tactics to hide their true motive. Take your time. Most legitimate businesses will give you time and written information about an offer before asking you to commit to a purchase.
* Never give out personal financial or other sensitive information like your bank account, credit card or Social Security numbers — even your driver’s license number or Vehicle Identification Number (VIN) — unless you know who you’re dealing with. Scam artists often ask for this information during an unsolicited sales pitch, and then use it to commit other frauds against you.
* Be skeptical of any unsolicited sales calls if the call is a recorded message or if your phone number is on the National Do Not Call Registry. You shouldn't get recorded sales pitches unless you have specifically agreed to accept such calls, with few exceptions — read New Rules for Robocalls to learn more. And if your number is on the National Do Not Call Registry, a salesperson may call you only if you have agreed to accept calls from the company the salesperson works for, if you have bought something from the company within the last 18 months or if you have asked the company for information within the last three months.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, urges you to be skeptical of mail and phone calls warning that the warranty on your car is about to expire. The companies behind the mail and calls may give the impression they represent your car dealer or manufacturer. With phrases like Motor Vehicle Notification, Final Warranty Notice or Notice of Interruption, they are trying to make the offer seem urgent — and to get you to call a toll-free number for more information.
More than likely, these pitches are from unrelated businesses that want to sell you extended warranties — more accurately known as service contracts — that often sell for hundreds or thousands of dollars. If you respond to a call from a business pitching so-called extended warranties, you’re likely to hear high-pressure sales tactics, as well as demands for personal financial information and a down payment, before you get any details about the service contract. And if you buy a service contract, you may find that the company behind it won’t be in business long enough to fulfill its commitments.
Protect Yourself
So how can you steer clear of scam auto warranty offers? The FTC says:
* If you get mail or phone calls about renewing your vehicle warranty, don’t take the information at face value. Your vehicle’s warranty may be far from expiring — or it may have expired already. If you have a question about your warranty, check your owner’s manual, call the dealer who sold you the car or contact the vehicle manufacturer.
* Be alert to fast talkers. Telemarketers pitching auto warranties often use high-pressure tactics to hide their true motive. Take your time. Most legitimate businesses will give you time and written information about an offer before asking you to commit to a purchase.
* Never give out personal financial or other sensitive information like your bank account, credit card or Social Security numbers — even your driver’s license number or Vehicle Identification Number (VIN) — unless you know who you’re dealing with. Scam artists often ask for this information during an unsolicited sales pitch, and then use it to commit other frauds against you.
* Be skeptical of any unsolicited sales calls if the call is a recorded message or if your phone number is on the National Do Not Call Registry. You shouldn't get recorded sales pitches unless you have specifically agreed to accept such calls, with few exceptions — read New Rules for Robocalls to learn more. And if your number is on the National Do Not Call Registry, a salesperson may call you only if you have agreed to accept calls from the company the salesperson works for, if you have bought something from the company within the last 18 months or if you have asked the company for information within the last three months.
Wednesday, March 2, 2011
Do You Know Where Your Warranty Is?
This is the press release for US Fidelis when they decided they collected enough money and then decided they were not going to stick around to pay the claims!!!
On March 1, 2010 US Fidelis filed a Chapter 11 Bankruptcy Petition in the United States Bankruptcy Court for the Eastern District of Missouri.
Upon filing of the chapter 11, US Fidelis assumed the role as the “debtor in possession” meaning that it continues to run its business without a bankruptcy trustee. US Fidelis will remain in Chapter 11 until it confirms a chapter 11 plan or if the case is dismissed or converted to chapter 7. Chapter 11 is typically used to reorganize a business. However, not all chapter 11 debtors reorganize. In fact, many use Chapter 11 to find a way to sell its assets or liquate its business.
The Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a bankruptcy trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee such as monthly operating reports.
To perform these duties, the company has appointed Scott Eisenberg, Managing Partner of Amherst Partners, to serve as the Chief Restructuring Officer. Amherst Partners provides numerous services including the provision of turnaround and restructuring assistance to distressed companies. See: www.amherstpartners.com.
For more details about bankruptcy, please visit the Eastern District of Missouri US Bankruptcy Courts website by following this link.
Chapter11 Updates
(March 02, 2010) If you have cancelled your Vehicle Service Contract and are seeking a refund, please understand that your contract is not with US Fidelis, it is with a third party administrator who is not a party to the bankruptcy proceedings. US Fidelis has agreements with each of these administrators, and some of those agreements state that when a customer cancels US Fidelis will reimburse the administrator for part of the amount refunded to the customer. The US Fidelis bankruptcy may impact the company’s ability to meet that obligation to the administrator, but that should not affect, alter, or limit whatever contractual duties the administrator has to the customer to provide a refund. However, if you believe you have a claim directly against US Fidelis you may file that claim with United States Bankruptcy Court for the Eastern District of Missouri. You may visit the Court’s website for the proper claim form by following this link. To file a repair claim, contact your administrator. The filing of the Chapter 11 does not directly impact your contract in way or your ability to receive the benefits that you are entitled to.
Have you been trapped in this situation?
Remember don't blame the product because of the actions of one administrator!
On March 1, 2010 US Fidelis filed a Chapter 11 Bankruptcy Petition in the United States Bankruptcy Court for the Eastern District of Missouri.
Upon filing of the chapter 11, US Fidelis assumed the role as the “debtor in possession” meaning that it continues to run its business without a bankruptcy trustee. US Fidelis will remain in Chapter 11 until it confirms a chapter 11 plan or if the case is dismissed or converted to chapter 7. Chapter 11 is typically used to reorganize a business. However, not all chapter 11 debtors reorganize. In fact, many use Chapter 11 to find a way to sell its assets or liquate its business.
The Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a bankruptcy trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee such as monthly operating reports.
To perform these duties, the company has appointed Scott Eisenberg, Managing Partner of Amherst Partners, to serve as the Chief Restructuring Officer. Amherst Partners provides numerous services including the provision of turnaround and restructuring assistance to distressed companies. See: www.amherstpartners.com.
For more details about bankruptcy, please visit the Eastern District of Missouri US Bankruptcy Courts website by following this link.
Chapter11 Updates
(March 02, 2010) If you have cancelled your Vehicle Service Contract and are seeking a refund, please understand that your contract is not with US Fidelis, it is with a third party administrator who is not a party to the bankruptcy proceedings. US Fidelis has agreements with each of these administrators, and some of those agreements state that when a customer cancels US Fidelis will reimburse the administrator for part of the amount refunded to the customer. The US Fidelis bankruptcy may impact the company’s ability to meet that obligation to the administrator, but that should not affect, alter, or limit whatever contractual duties the administrator has to the customer to provide a refund. However, if you believe you have a claim directly against US Fidelis you may file that claim with United States Bankruptcy Court for the Eastern District of Missouri. You may visit the Court’s website for the proper claim form by following this link. To file a repair claim, contact your administrator. The filing of the Chapter 11 does not directly impact your contract in way or your ability to receive the benefits that you are entitled to.
Have you been trapped in this situation?
Remember don't blame the product because of the actions of one administrator!
Monday, February 14, 2011
Oklahoma Supreme Court says service contracts are a form of insurance
The Oklahoma Supreme Court has ruled that service contracts are a form of insurance, thus opening the door for bad-faith damages, including punitive damages, if issuers wrongfully deny consumers' claims.
By a 6-2 vote, the court rejected the argument by Enterprise Financial Group Inc. that it can be held liable only for breach of contract and thus potentially less extensive jury awards.
The ruling arose from Harry McMullan III's purchase of a $1,800 service EFG contract with a used 2004 Ford Mustang Cobra from Edmond Hyundai in Oklahoma City.
EFG allegedly refused to pay McMullan's claim for engine damage under his 48-month, 50,000-mile contract, so he sued for both breach of contract and bad faith.
The dealership isn't a defendant in McMullan's suit.
Lawyers said it is uncertain whether Oklahoma dealerships that sell their own branded service contracts could also be subject to costly bad-faith claims under the decision.
Same good faith covenants
Enterprise argued that vehicle service contracts fall outside the definition of insurance contracts, thus limiting the size of potential verdict.
A lower court agreed and dismissed the bad-faith allegation.
But the Supreme Court reinstated that part of the lawsuit.
“The consumer pays for indemnity and pays to shift the risk of paying for high repair costs to the vehicle service provider in exchange for a pre-paid premium,” Justice Yvonne Kauger said in the majority opinion.
“Because these contracts function like insurance, their providers should be subject to the same covenants of good faith that insurers must meet,” she continued.
Plaintiff's lawyer Murray Abowitz of Abowitz, Timberlake, Dahnke & Gisinger in Oklahoma City, said the decision imposes a fiduciary duty on contract-issuers.
“There's a duty to place the interest of the insured first,” he said. That means the insurer is required “to find a way that the damage is covered under the policy rather than find a way not to pay.”
Courts in other states are divided on whether vehicle service contracts are a form of insurance, Kauger noted. For example, Arizona and Utah treat them the same, while Ohio doesn't.
Dealer-branded contracts
If the court's reasoning applies to dealer-branded service contracts that include the same responsibilities as third-party issuers, dealerships may face punitive damages and attorney fees, according to the plaintiff's lawyers.
“It's iffy for a dealer. It is certain for a third-party service contact company,” said McMullan's other attorney, Daniel Hays of the Abowitz firm.
A lawyer for Enterprise, Cara Nicklas of the Oklahoma City firm Corbyn Hampton, said the possibility of winning punitive damages in such situations would make bad-faith allegations more attractive to plaintiffs' lawyers.
That's because most traditional breach-of-service-contract cases involve only a few thousand dollars in damages or perhaps the price of the vehicle, Nicklas said.
The Supreme Court expressed no view on the merits of McMullan's allegations against Enterprise and returned the case to Oklahoma County District Court for further proceedings.
Nicklas said most pretrial discovery is complete and “now a jury will have to decide whether or not there was bad faith on the part of” her client.
Abowitz said he may file similar individual or class action litigation on behalf of other Enterprise customers.
The nuse is tightening for several unscropulous extended warranty providers. ACWII is in complete agree with this decision and we also believe...
“There's a duty to place the interest of the insured first,” he said. That means the insurer is required “to find a way that the damage is covered under the policy rather than find a way not to pay.”
What is do you think about this decision?
Read more: http://www.autonews.com/article/20110209/LEGALFILE/302099920/1142#ixzz1Dx5RceZs
By a 6-2 vote, the court rejected the argument by Enterprise Financial Group Inc. that it can be held liable only for breach of contract and thus potentially less extensive jury awards.
The ruling arose from Harry McMullan III's purchase of a $1,800 service EFG contract with a used 2004 Ford Mustang Cobra from Edmond Hyundai in Oklahoma City.
EFG allegedly refused to pay McMullan's claim for engine damage under his 48-month, 50,000-mile contract, so he sued for both breach of contract and bad faith.
The dealership isn't a defendant in McMullan's suit.
Lawyers said it is uncertain whether Oklahoma dealerships that sell their own branded service contracts could also be subject to costly bad-faith claims under the decision.
Same good faith covenants
Enterprise argued that vehicle service contracts fall outside the definition of insurance contracts, thus limiting the size of potential verdict.
A lower court agreed and dismissed the bad-faith allegation.
But the Supreme Court reinstated that part of the lawsuit.
“The consumer pays for indemnity and pays to shift the risk of paying for high repair costs to the vehicle service provider in exchange for a pre-paid premium,” Justice Yvonne Kauger said in the majority opinion.
“Because these contracts function like insurance, their providers should be subject to the same covenants of good faith that insurers must meet,” she continued.
Plaintiff's lawyer Murray Abowitz of Abowitz, Timberlake, Dahnke & Gisinger in Oklahoma City, said the decision imposes a fiduciary duty on contract-issuers.
“There's a duty to place the interest of the insured first,” he said. That means the insurer is required “to find a way that the damage is covered under the policy rather than find a way not to pay.”
Courts in other states are divided on whether vehicle service contracts are a form of insurance, Kauger noted. For example, Arizona and Utah treat them the same, while Ohio doesn't.
Dealer-branded contracts
If the court's reasoning applies to dealer-branded service contracts that include the same responsibilities as third-party issuers, dealerships may face punitive damages and attorney fees, according to the plaintiff's lawyers.
“It's iffy for a dealer. It is certain for a third-party service contact company,” said McMullan's other attorney, Daniel Hays of the Abowitz firm.
A lawyer for Enterprise, Cara Nicklas of the Oklahoma City firm Corbyn Hampton, said the possibility of winning punitive damages in such situations would make bad-faith allegations more attractive to plaintiffs' lawyers.
That's because most traditional breach-of-service-contract cases involve only a few thousand dollars in damages or perhaps the price of the vehicle, Nicklas said.
The Supreme Court expressed no view on the merits of McMullan's allegations against Enterprise and returned the case to Oklahoma County District Court for further proceedings.
Nicklas said most pretrial discovery is complete and “now a jury will have to decide whether or not there was bad faith on the part of” her client.
Abowitz said he may file similar individual or class action litigation on behalf of other Enterprise customers.
The nuse is tightening for several unscropulous extended warranty providers. ACWII is in complete agree with this decision and we also believe...
“There's a duty to place the interest of the insured first,” he said. That means the insurer is required “to find a way that the damage is covered under the policy rather than find a way not to pay.”
What is do you think about this decision?
Read more: http://www.autonews.com/article/20110209/LEGALFILE/302099920/1142#ixzz1Dx5RceZs
Thursday, January 27, 2011
Extended warranties for vehicles after the original has run out
Joanne at the Globe and Mail couldn’t have said it better when she was asked in her blog;
I was wondering what your position is on purchasing extended warranties for your vehicle after your original has run out. I have a 2007 RAV4.– Al in Trail, B.C.Joanne responded with,
“It seems almost a motorist’s rite of passage to experience, or at least sympathize with others, over a warranty horror story. Whether it’s a motorist who didn’t buy an extended warranty and paid a price, or another who paid a pretty premium but whose repair was ruled out by the small print. So, should you consider one?
Typically, you’ll be three to five years into new-car ownership when the manufacturers warranty runs out. By then, you’ve clocked some kilometres and it’s more likely things will go wrong from that point on.
The price of an out-of-warranty repair can easily be more than the cost of an extended warranty. What things should you watch out for? Deductibles, service interval requirements, coverage (i.e. does the contract require maintenance and repairs be done exclusively at the dealership?) and the fine print in general as to what is and is not covered. The reputability of the warranty provider is also very important.
According to Toyota Canada, a 2007 RAV4 (just like yours) comes with Toyota’s standard three- year/60,000-km comprehensive manufacturers warranty, and its five-year/100,000-km powertrain warranty. Those warranties come with a new vehicle, and stay with the vehicle, regardless of the owner.
“We have two types of extended warranties. One is with Toyota, and the other is recommended by Toyota,” says a spokesperson at Westminster Toyota in Vancouver. “Mileage, model, and the year of your vehicle will determine which you are eligible for. In order to get a Toyota extended warranty you have to get it from the dealer. Whether you buy used or new, you have to buy this warranty from Toyota when you buy the car.”
Manufacturers offer extensions to their warranties, but usually only at the time of vehicle purchase, such as extending the four-year warranty to seven years. Typically, they‘re more expensive than aftermarket warranty companies.
Aftermarket companies offer a diverse selection – from power train to full warranties. Prices and terms differ. Obviously, you’ll pay extra for more coverage. In any case, again, make sure you check the fine print. Some warranties cover wear and tear on parts, while others only cover breakage.
“The purchase of an extended warranty is all about understanding the exclusions, and your responsibilities. They all come with nice glossy brochures and they all say they’re going to do stuff, but the latter pages of the brochure and the warranty itself tell you what’s excluded – what’s not going to be fixed if you abuse the vehicle or don’t maintain it properly.
The public have to understand that they have some obligations when they buy an extended warranty,” says Bob Pierce, director of member services for the Used Car Dealers Association of Ontario.
If you find a reputable provider that offers acceptable coverage for an attractive price, an extended warranty can be a good insurance policy against unexpected major repairs. It’s a fixed amount, so you can plan and factor that into your vehicle ownership costs up front. A transferable extended warranty is also good for the resale value should you wish to sell down the road.”
Thanks Joanne, our visitors will appreciate your advice.
If you have questions about ACWII or extended warranties please don't hesitate to comment in this forum.
I was wondering what your position is on purchasing extended warranties for your vehicle after your original has run out. I have a 2007 RAV4.– Al in Trail, B.C.Joanne responded with,
“It seems almost a motorist’s rite of passage to experience, or at least sympathize with others, over a warranty horror story. Whether it’s a motorist who didn’t buy an extended warranty and paid a price, or another who paid a pretty premium but whose repair was ruled out by the small print. So, should you consider one?
Typically, you’ll be three to five years into new-car ownership when the manufacturers warranty runs out. By then, you’ve clocked some kilometres and it’s more likely things will go wrong from that point on.
The price of an out-of-warranty repair can easily be more than the cost of an extended warranty. What things should you watch out for? Deductibles, service interval requirements, coverage (i.e. does the contract require maintenance and repairs be done exclusively at the dealership?) and the fine print in general as to what is and is not covered. The reputability of the warranty provider is also very important.
According to Toyota Canada, a 2007 RAV4 (just like yours) comes with Toyota’s standard three- year/60,000-km comprehensive manufacturers warranty, and its five-year/100,000-km powertrain warranty. Those warranties come with a new vehicle, and stay with the vehicle, regardless of the owner.
“We have two types of extended warranties. One is with Toyota, and the other is recommended by Toyota,” says a spokesperson at Westminster Toyota in Vancouver. “Mileage, model, and the year of your vehicle will determine which you are eligible for. In order to get a Toyota extended warranty you have to get it from the dealer. Whether you buy used or new, you have to buy this warranty from Toyota when you buy the car.”
Manufacturers offer extensions to their warranties, but usually only at the time of vehicle purchase, such as extending the four-year warranty to seven years. Typically, they‘re more expensive than aftermarket warranty companies.
Aftermarket companies offer a diverse selection – from power train to full warranties. Prices and terms differ. Obviously, you’ll pay extra for more coverage. In any case, again, make sure you check the fine print. Some warranties cover wear and tear on parts, while others only cover breakage.
“The purchase of an extended warranty is all about understanding the exclusions, and your responsibilities. They all come with nice glossy brochures and they all say they’re going to do stuff, but the latter pages of the brochure and the warranty itself tell you what’s excluded – what’s not going to be fixed if you abuse the vehicle or don’t maintain it properly.
The public have to understand that they have some obligations when they buy an extended warranty,” says Bob Pierce, director of member services for the Used Car Dealers Association of Ontario.
If you find a reputable provider that offers acceptable coverage for an attractive price, an extended warranty can be a good insurance policy against unexpected major repairs. It’s a fixed amount, so you can plan and factor that into your vehicle ownership costs up front. A transferable extended warranty is also good for the resale value should you wish to sell down the road.”
Thanks Joanne, our visitors will appreciate your advice.
If you have questions about ACWII or extended warranties please don't hesitate to comment in this forum.
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