Corbett files suit against Allentown warranty business

Drew Smith Oct. 21, 2008, 12:04am

Tom Corbett (R)

HARRISBURG, Pa. (Legal Newsline) -- Pennsylvania Attorney General Tom Corbett has filed a lawsuit against an Allentown-based used car warranty business for violations of the state's Consumer Protection Law.

The suit was filed in the Lehigh County Court of Common Pleas against America's Choice Protection Plans and its owner, Francis Gaffney.

Corbett has accused the company of failing to honor consumer contracts, failing to pay claims within a reasonable amount of time, failing to provide refunds to consumers who canceled their contracts, using misleading or deceptive information to advertise and sell warranty contract.

"Consumers believed they were protecting themselves against unexpected problems and unanticipated repair expenses by purchasing these extended warranties," Corbett said. "Instead, they were left with broken promises, unpaid repair bills and unanswered questions."

According to the lawsuit, America's Choice sold warranties and then failed to reimburse customers when they provided receipts for work done to their vehicle.

Corbett is seeking full restitution for consumers and civil penalties up to $1,000 per violation and $3,000 per violation involving a senior citizen.

He is also seeking the court to permanently prohibit Gaffney from operating such a company in Pennsylvania.

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