Bryan Cohen May 12, 2014, 5:24pm

BOISE, Idaho (Legal Newsline) - Idaho Attorney General Lawrence Wasden announced a settlement on Friday with a Utah-based vehicle service contract provider to resolve allegations it violated the Idaho Consumer Protection Act.

Gold Standard Automotive Network Inc. (GSAN) provides customers with motor vehicle service contracts that are not warranties or insurance policies. The contracts are agreements that GSAN will provide specific repair or replacement services for a motor vehicle in certain circumstances.

GSAN allegedly sold motor vehicle service contracts in Idaho that were not covered by a liability insurance policy. Idaho law requires that service contracts are covered by a liability insurance policy.

GSAN also allegedly failed to make mandatory disclosures in its contracts.

"Unfortunately, motor vehicle service providers too often disappear when it is time to honor their contractual obligations, leaving consumers without the service they have already paid for," Wasden said. "To protect consumers, Idaho law requires that motor vehicle service providers obtain liability insurance in the event the provider goes out of business or cannot meet its contractual obligations."

Under the terms of the settlement, Idaho consumers who bought a motor vehicle service contract from GSAN before November 1 will be allowed to cancel their contracts and receive a refund from GSAN. Wasden's office will notify eligible consumers via mail.

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