Tag Archive | "vehicle service contracts"

N.J. Dealer Agrees to Pay $136,000 to Resolve Consumer Fraud Investigation

NEWARK, N.J. — Sansone Hyundai has agreed to pay $136,000 to resolve charges that it failed to disclose the total price of certain advertised vehicles and charged consumers for F&I products listed at “no charge” on certain leases and sales contracts,” New Jersey Attorney General Christopher S. Porrino and the state’s Division of Consumer Affairs announced on Friday.

The dealership, winner of DealerRater’s 2016 and 2017 Consumer Satisfaction Award, also agreed to change its advertising, sales, and leasing practices, including disclosing all costs and fees associated with the purchase or lease of a vehicle before consumers sign on the dotted line.

“Consumers should be able to purchase a new car without having to worry about misinformation and hidden costs,” said Attorney General Porrino. “This settlement ensures that consumers will receive transparency and honesty from this dealership, as required by law.”

The settlement was announced three days after New York’s Nissan of Rochelle, located two hours north of Sansone, agreed to pay more than $298,000 to settle Attorney General Eric Schneiderman’s charges that it willfully defrauded 298 car buyers by tacking on a window-etch programs after customers agreed to a price for the vehicle and often without their knowledge.

In a consent order with the Division of Consumer Affairs, Sansone Hyundai and its directors agreed not to add and charge for aftermarket products, such as window etch and service contracts, without the consumers’ knowledge and/or authorization, or represent to consumers that certain dealer-installed options are mandatory when they’re not.

The New Jersey dealership also agreed not to sell consumers aftermarket products that overlap or provide similar benefits the consumer has already purchased through the lease and sale transaction; accurately reflect in leases the “gross capitalized cost” as required by the consumer leasing act; provide consumers with an opportunity to review all leases and/or sales documents and/or aftermarket contracts prior to signing; and not identify the advertised prices of vehicles by reference to the MSRP sticker, when the vehicle includes an addendum to the MSRP sticker that reflects a higher total price.

The dealership must also comply with all applicable state and/or federal laws, rules, and regulations, including the Consumer Fraud Act, the Motor Vehicle Advertising Regulations, the Automotive Sales Regulations, and the Consumer Leasing Act, according to the consent order.

“Dealerships must fully disclose all costs and fees associated with the purchase or lease of a vehicle before consumers sign on the dotted line,” said Steve Lee, director of New Jersey’s Division of Consumer Affairs. “We will continue to enforce the laws and regulations in place to ensure consumers have the facts they need to make informed decisions.”

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First Choice Car Care Launches High-Mileage VSC Plans

TAMPA, Fla. — First Choice Car Care today launched new five-year, 100,000-mile vehicle service contract (VSC) plans for vehicles up to 20 model years old and have up to 150,000 miles on their odometers.

First Choice Car Care is designed to appeal to buyers of older vehicles who desire investment protection at a reasonable cost, according to company officials. It also encourages dealers to retail units profitably they would otherwise wholesale for a loss.

“These plans help us sell an additional 50 to 75 high-mileage units a year, and because of their competitive pricing, they also help me close more subprime deals,” says Angela Barrett, lead finance manager for Jenkins Nissan in Leesburg, Fla. The dealership retails about 150 new and used vehicles a month.

Barrett added that the costs of the plan give the dealership more wiggle room when it comes to trades. “That can make the difference for a prime deal, because now we have a retail outlet for these cars,” she said. “That makes us a reasonable front and back profit on units we’d otherwise have to wholesale at a loss.”

Part of the Consator Group of Companies, First Choice Car Care covers eligible vehicles 20 years and newer and have under 150,000 on the odometer when sold. It also offers five years investment and budget protection, and provides 50,000-, 75,000-, and 100,000-mile coverage options.

The First Choice Car Care VSC covers most domestic brands, including orphans and most luxury and import models. For either vehicle class, consumers can choose either a basic plan for powertrain, turbo/supercharger, and four-by-four and all-wheel-drive transfer case components, or the Enhanced plan. The later adds drive axle, air conditioning, electrical, and fuel system protection.

All programs include wear and coverage, towing, rental, roadside assistance, and trip interruption. And coverages may be transferrable to a new owner should the original purchaser sell the covered vehicle.

The First Choice Vehicle Service Contract program is administered by Allegiance Administrators. First Choice Vehicle Service Contracts are backed by Assurant, which has more than $30 billion in assets and is an “A”-rated carrier with A.M. Best.

For more, contact Lloyd Trushel, president of First Choice Car Care, at email hidden; JavaScript is required">email hidden; JavaScript is required

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GWC Warranty Names New Vice President Of Operations

WILKES-BARRE, PA. – GWC Warranty, a best-in-class provider of used vehicle service contracts and related finance and insurance products sold through automotive dealers, has appointed Richard Gesler as the company’s new Vice President Of Operations.

In his role, Gesler will oversee all of GWC Warranty’s claims, business processing and customer service operations.

“Rich’s proven track record of leadership, claims management and customer service excellence could not be a more perfect fit for GWC Warranty,” said GWC Warranty CEO & President Rob Glander. “The areas of the business Rich will oversee touch our dealer, agent and lender partners as well as their customers on a daily basis. We’re confident that he will continue to enhance our top-tier claims team and elevate the best-in-class customer service we commit to deliver in every interaction.”

Gesler, a Long Island University graduate, joins GWC Warranty following more than two decades of claims management experience. Throughout his career he has improved claims performance and customer service at numerous organizations such as Liberty Mutual Insurance Company, Hanover Insurance Group, AutoOne Insurance, Bristol West Insurance and Nationwide Insurance.

With more than 20 years of experience administering used vehicle service contracts (VSC), GWC Warranty has paid more than $400 million in claims to date. Gesler’s arrival is aimed at enhancing this already strong VSC operation with a customer-focused approach to claims administration and customer service.

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EasyCare Releases Full Suite of RV-Geared F&I Benefits

NORCROSS, Ga. — EasyCare recently launch a full suite of F&I products geared toward the recreational vehicle market. Protections include road hazard tire-and-wheel protection, GAP, limited warranty and vehicle service contracts.

According to officials with EasyCare, a “MOTOR TREND Recommended Best Buy,” three out of 10 RV’s will require some type of major repair by their second year on the road.

“We’re so excited to now offer our dealers a full suite of EasyCare RV benefits and services. Our primary goal is to help our dealers succeed. With over 30 years of expertise consulting and supporting our dealers, we understand how critical it is that our benefits are designed to enhance their customer’s ownership experience so they return for future service and sales,” said Walt Burns V, national brand manager for EasyCare RV. “And now, more consumers will enjoy their RVs with the peace of mind that our quality benefits offer.”

In addition to offering MOTOR TREND recommended benefits, EasyCare’s benefits are backed by “A-” or better rated insurers. The company is also a member of the Recreational Vehicle Dealers Association (RVDA) and the Recreational Vehicle Industry Association (RVIA).

For more information, visit www.easycare.com/rv.

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CNA National Reaches Three Million Contracts in Force

SCOTTSDALE, Ariz.—CNA National has announced that as of August 2015, it now has more than three million contracts in force across its product lines, including vehicle service contracts, GAP, tire-and-wheel protection, and warranties.

“This is a wonderful accomplishment for everyone who is part of CNA National,” said Joe Becker, president and chief executive officer. “Passing the mark of three million active contracts is a testament to the quality of both our products and our customer service. We appreciate our agents, dealers, and staff who all contributed to helping us reach this milestone.”

Founded in 1982, CNA National has always strived to be not the biggest but the best service contract company in the industry. It has grown exponentially over the past 30 years, from a two-person operation to over 250 employees. The company offers a host of F&I products primarily through franchised automobile dealerships, as well as a variety of participation programs. Through dealership votes, the company has earned a record total of 18 Dealers’ Choice Awards, including 11 consecutive first-place finishes. In addition, CNA National was a finalist in the 2015 BBB Business Ethics Awards for Arizona.

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Vets-Cars Group Creates VSC Program Specifically for Military Members

EAST HADDAM – The Vets-Cars® Group, a Veteran-owned business dedicated to providing the U.S. military community with a superior and respectful vehicle buying experience, announced the rollout of the Vets-Shield® Vehicle Service Contract Program of products designed specifically for the military community and their families.

Developed by Vets for Vets, these top-tier exclusionary plans for Auto, Powersport, RV, Commercial and Hybrid vehicles provide strong coverage and solid benefits including 24-hour roadside assistance, towing, and a full year of identity theft coverage.

“This is YOUR vehicle protection plan,” said Sergeant Major Dave Francisco, referencing the military community nationwide, “and, YOUR service has earned you the right to clear, superior and price capped coverage.”

Sergeant Majors Dave Francisco and Tom Howard, both USMC (ret), the developers of the Vets-Shield program, incorporated many unique and valuable features into the products based on research and interviews with many active and former military members.

“Our research clearly showed priority concerns for coverage quality, privacy, identity theft and price protection, and claims support,” said Chris Walsh, Vets-Shield Inc., President. “With that understanding, we sought out and partnered with NAC (National Auto Care), a leading service contract administrator with over 27 years of commitment to offering honest, quality products and services to vehicle buyers,” Walsh continued.

“NAC’s focus on the special needs of military customers and promise to meet and exceed those expectations, is rare in their industry, and we’re pleased to be working with them.”

“One of the most noteworthy details of this program? We’re giving back… we’ve pledged a portion of each sale to Veteran and military family support organizations,” added Sergeant Major Francisco.

NAC’s National Director of Business Development, Major Henry Paoli, USAR, an early and enthusiastic supporter of the program said, “I consider this a rare opportunity, a solemn responsibility and a source of pride for the entire NAC team, and we are thrilled to be a part of this important undertaking.”

Vets-Shield service contracts, modeled from NAC’s highest and best levels of comprehensive coverage, for Auto, Powersport, RV, Commercial and Hybrid vehicles, will be available through better dealerships nationwide and national roll-out of program is set for November 11, 2011 – Veteran’s Day.

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