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A set of recommendations aimed at overhauling the auto service contract telemarketing industry has been released by the Attorney General of Missouri, Chris Koster.
Among his recommendations include requiring licenses for contract sellers, as well as implementing tougher protections. These would increase the awareness of consumers on the type of repairs that the policy actually covers.
Koster lamented the blatant abuses made against the consumers by some players in the industry. Most of these problems are all well-documented. “The recommendations we are offering give consumers the right to know what they are buying and the ability to say ‘no thank you’ when they’ve been lied to,” he said.
In April of last year, a task force, which was designed to address the problems plaguing the industry, was created by Koster. These problems include the alleged deceptive marketing of engine additives, as well as unreasonable cancellation terms.
The task force included other statewide officials, as well as representatives of entities offering extended auto warranties.
The office of Koster was able to file twelve lawsuits during the past year against auto service contract telemarketers due to the problems mentioned in his recommendations.
Koster says that if the recommendations are fully implemented, then it can fully reinvent a section of the auto service contract industry that makes entreaties to consumers through telephone and direct mail.
The Missouri Attorney General also said, “Too many bad actors in the auto service contract business have taken advantage of, and actually cheated, consumers.” He also added that, “It is time for this outrageous behavior to end, and for this industry to be held to the same standards as other Missouri businesses.”