Mo. Attorney General Koster leads forum on fraud - KMOV.com

Mo. Attorney General Koster leads forum on fraud

KMOV -- Missouri Attorney General Chris Koster spent much of the day Friday at a forum in Lake St. Louis, talking with people about a problem that has become all too common.

Drivers shared their frustrations over the money lost out to "auto service contract fraud."

Donna Yuma is one among thousands who says she lost out after agreeing to an auto service contract with Wentzville-based U.S. Fidelis.

"Oh yeah, nearly $3,000. And that hurt because my husband's been unemployed the past year on and off, and we've really struggled," Yuma says.

"This meeting takes it out of the abstract and really puts a human face on it," Koster says.

The meeting also gave the state a chance to talk about ways to clean up the auto service contract industry.

"I don't know if you can pinpoint one thing that would make a big difference. The industry needs to do a better job of policing itself, and holding itself to higher standards," says Travis Ford of the Missouri Department of Insurance. "The regulations could be beefed up."

In the meantime, the state has either filed or settled a dozen cases involving service contract marketers.

As for Yuma, she says she will know who to contact the next time someone approaches her with a service contract.

"Better Business Bureau because when I called them after they were giving me all these problems, the Better Business Bureau said they had a lot of bad marks on them," Yuma says.

The Better Business Bureau says if a broker tries to sell an extended auto service contract, the buyer should never give any personal information over the phone. The BBB also says to make sure to read the contract first before entering an agreement.

For more information visit the Better Business Bureau's website

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