by KYW's Tony Romeo
The Pennsylvania attorney general’s office has filed a lawsuit against a California man and his company for allegedly misleading consumers about motor vehicle warranties.
Nils Frederiksen, spokesman for Pennsylvania’s attorney general, says Pro-Guard International failed to pay consumers who bought “no claim bonus” contracts as part of their warranty coverage for new or used vehicles:
“Consumers were told that if they bought the warranty and if they paid extra for this 'no claims bonus,' that they’d get their money back at the end of the warranty period if they had not filed any claims.”
In addition to not paying people who had these “no claim bonus” contracts, the AG also contends that Pro-Guard International set unreasonably short claims deadlines, making it extremely difficult for consumers to comply with the warranty claims process.
Fredericksen says the AG’s office has gotten several dozen complaints about warranties sold through two dealerships, one in Bucks County and the other in Lehigh County, but he adds that consumers throughout the region may be affected:
“People may have gone to these dealerships from Montco or Chester or beyond. I mean, it’s not just confined to residents in Bucks and Lehigh counties. It includes anybody who was shopping for a car in southeastern Pennsylvania.”
The AG’s office was not naming the dealerships because they are not involved in the alleged wrongdoing.
To file a complaint, call 1-800-441-2555 or go to the Pennsylvania attorney general's web site, attorneygeneral.gov.
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