Missouri task force considers service contracts - KMOV.com

Missouri task force considers service contracts

LAKE SAINT LOUIS, Mo. (AP) -- A task force has started meeting to work on scams involving auto service contracts.

Missouri Attorney General Chris Koster says companies selling the extended contracts have operated for years without any meaningful state regulations or industry-imposed rules. The St. Louis Post-Dispatch reported that Koster spoke to the task force this past week during its inaugural meeting in Lake Saint Louis.

At least 30 of the service contract firms are based in the St. Louis area. Koster's office has filed civil suits against at least 10 of those companies in the last 12 months.

But Koster says regulating the industry through litigation isn't a lasting solution.

Concerns include that consumers often find the coverage essentially worthless because of low limits for vehicle repairs. Also, getting refunds can be difficult.

------

Information from: St. Louis Post-Dispatch, http://www.stltoday.com

(Copyright 2010 by The Associated Press. All Rights Reserved.)

Powered by Frankly