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Wasden settlement features $75K in civil penalties

By Keith Loria | Oct 14, 2010


BOISE, Idaho (Legal Newsline) - Idaho Attorney General Lawrence Wasden announced on Tuesday that an auto service contract seller and its owner have been permanently banned from telemarketing with Idaho consumers.

The Irvine, Calif-based Credexx Corporation and its owner, David Tabb, agreed to a settlement in which they will halt doing business with Idaho consumers. The company sold vehicle service contracts in Idaho under the name Auto One Warranty Specialists from 2005-2009 and allegedly misrepresented the material terms and conditions of the vehicle service contracts it sold.

"Consumers must be wary of service contracts that purport to provide their cars with bumper-to-bumper coverage," Wasden said. "No service contract covers every car part or service and most contracts provide little, if any, coverage."

Wasden's suit alleged that Credexx also mailed postcards to Idaho consumers that misrepresented that the the consumers' vehicle warranties were expired or were about to expire.

Credexx also allegedly telemarketed to Idaho consumers without registering with the attorney general and made calls to those listed on the National Do-Not-Call Registry.

The suit also alleged that Credexx failed to refund consumers' payments promptly.

Credexx agreed to a settlement in the amount of $88,000, of which $10,000 will be used to pay back consumers while $75,000 will be paid in civil penalties and $3,000 will be paid for costs associated with the litigation.

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