Five States Sue Allegedly Bogus Warranty DMer

Five state attorneys general have filed lawsuits seeking a permanent injunction against Credexx Corp and of Irvine, Calif., and its president, David J. Tabb for allegedly offering fraudulent automobile extended warranty plans through telemarketing, direct mail, and direct response television, according to Washington Attorney General Rob McKenna.

The attorneys general of Idaho, Kansas, Ohio, and North Carolina joined in this suit, according to McKenna.

Credexx also did business as Auto One Warranty and Auto One Warranty Specialists, added McKenna.

Credexx sold at least 1,340 vehicle service contracts and protection products to Washington residents but frequently didn’t receive the coverage they were promised, said McKenna.

The suit accuses Credexx of many other misrepresentations including implying that its product is a “factory warranty” and that the company is associated with a vehicle manufacturer or dealer, continued McKenna.

Credexx made it difficult for consumers to cancel their contracts and often failed to provide refunds, the suit said.

The company is also accused of violating telemarketing laws by using prerecorded messages and automatic dialers, disguising the call’s origin and contacting consumers whose numbers appear on the national Do Not Call registry, according to McKenna.