Tag Archives: Vehicle Service Contract

Suit from Aspen lawyer, pastor over auto warranty calls seeks millions

A local attorney and his wife are plaintiffs in a lawsuit that alleged multiple telemarketing companies conspired in an auto warranty scam …

Full Article: https://www.aspentimes.com/news/local/suit-from-aspen-lawyer-pastor-over-auto-warranty-calls-seeks-millions/

CA Department of Insurance orders consumer refunds from illegal sales of extended vehicle warranties

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.

Full Release: http://www.insurance.ca.gov/0400-news/0100-press-releases/2021/release059-2021.cfm

AUL enhances VSC policies for electric and hybrid vehicles

AUL Corp. announces the rollout of new enhanced options to the F&I provider’s core vehicle service contract policies for pre-owned units.

Full Article: https://www.autoremarketing.com/subprime/aul-enhances-vsc-policies-electric-and-hybrid-vehicles

Pennsylvania AG Shapiro Suing Delta Auto Protect to Get Money Back for Consumers in Repair Scam

Attorney General Josh Shapiro announced that his Office has filed a civil lawsuit against extended automobile warranty company Delta Auto Protect to get money back for consumers and repair shops…

Full Article https://www.attorneygeneral.gov/taking-action/press-releases/ag-shapiro-suing-delta-auto-protect-to-get-money-back-for-consumers-in-repair-scam/

Minnesota Changes to Vehicle Service Contract Statutes

Minnesota makes changes to its Statutes related to Vehicle Service Contracts and adds language for Ancillary Programs.

Source: https://www.revisor.mn.gov/bills/text.php?session=ls90&number=HF3418&session_number=0&session_year=2017&version=list

Zurich to Focus Heavily on F&I in 2018

Zurich North America, one of the largest insurance and vehicle service contract providers for auto dealers plans on a heavy focus on F&I in 2018.

Article:  http://www.fi-magazine.com/news/story/2018/01/zurich-to-focus-heavily-on-f-i-in-2018.aspx

Telemarketers are not always agents of the Service Contract providers.

With several providers settling lawsuits in the past that claimed the telemarketers were agents of the Service Contract providers this is a positive and logical finding. In this case – Royal Administration Services Inc. could not be held liable for unsolicited calls made by independent contractors.

Article:  https://www.law360.com/california/articles/952938/9th-circ-won-t-restore-tcpa-claims-against-car-warranty-co-

What’s Next for Auto F&I?

The unprecedented recovery is over – now what?

It’s been an incredible cycle the last 8 years as the auto industry came roaring back after the collapse in 08. We have now reach a plateau for new car sales and will likely hold below 18m new car sales for the next few years.  With new car sales as the industry proxy for the performance of the Vehicle Service Contract space the leveling of sales is already driving change.

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AAA: One In Three U.S. Drivers Can’t Afford Unexpected Repair

According to a new survey from AAA 64 million drivers would not be able to pay for an unexpected vehicle repair without going into debt.  This serves to reinforce the value of service contracts.

Source:  http://www.autodealermonthly.com/news/story/2017/04/aaa-one-in-three-u-s-drivers-can-t-afford-unexpected-repair.aspx