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Eight U.s. States File Charges Against Automotive Extended Warranty Companies

Eight states and the District of Columbia are suing automotive extended warranty companies, including U.S. Fidelis, Credexx Corporation and Auto One. At issue is the difference between a warranty and a service contract. Though marketed and promoted as extended warranties, products from the companies referenced are really service contracts, which have a different legal definition and allow exclusions not permitted by warranties. States have received numerous consumer complaints against extended warranty vendors, including high pressure sales tactics and repair exclusions that leave customers with unexpected and expensive repair bills.

Source: RideLust

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