Auto service marketer banned in N.C. |
Written by David Horn
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Tuesday, 25 January 2011 11:55 |
(RALEIGH) -- An auto service contract company that used illegal telemarketing calls to trick seniors and other car owners is now barred from operating in North Carolina. Attorney General Roy Cooper said Automotive Protection of New Jersey is the third such company prohibited from selling or pitching auto service contracts in North Carolina in as many months.
In November, Cooper won an agreement with the individuals who ran U.S. Fidelis, formerly the nation's number one seller of car service contracts. In December, Credexx and its owner were banned from doing business in the state.
“Each week, we hear from people who aren’t getting their money’s worth from auto service contracts,” said Cooper said. “We’re watching this industry closely to protect North Carolina drivers.”
Cooper's office said any consumer who purchased a contract from Automotive Protection now has the option to cancel it. Automotive Protection and its owner have also been ordered to pay $4.5 million in civil penalties, which would go to North Carolina public schools.
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