A Department of Insurance investigation that found a company was illegally selling vehicle service contracts, or “extended warranties,” has led to an order requiring it to refund consumers and dissolve its operations.
The California Department of Insurance issued a Cease and Desist Order effective immediately for New Jersey-based company, Forever Home Service LLC, doing business as Harmony Home Warranty (Harmony).
California Department of Insurance Investigates VSC Company
The Insurance Commissioner’s office is still investigating, but so far 1,044 Californians were found to have paid a total of $2.3 million in extended vehicle repair contracts that were sold outside the state’s insurance rules. Seven people in Santa Barbara County were on Commissioner Ricardo Lara’s list as having bought the policies, which ranged in price from $1,300 to $2,600.