CHICAGO (CN) – General Motors sells overlapping warranties, a class action claims in Cook County Court. The class claims GM cancels its first warranty before it expires, then includes a $50 deductible in the second plan instead of the zero deductible from the original warranty, which should still be active.
Lead plaintiff Stuart Stein says he paid $2,175 for the first warranty on his Chevy Trailblazer, and $1,520 for the second one, after he received a GM flyer telling him to “ensure seamless coverage” by extending the original warranty.
Stein says that though his first warranty had not expired, GM used the second plan for service on his truck and made him pay a $50 deductible.
He says that he did not receive a refund on the final, overlapping months of his first warranty. And he says that he did not receive any documents about the second plan until a month after he paid for it.
The class claims GM pushes its second warranty on customers before they need it, “silently canceling the existing plan,” to “obtain double payment” during the overlap period. It alleges breach of contract, unjust enrichment and consumer fraud against General Motors and GMAC Service Agreement Corp.
The class is represented by Daniel Edelman of Edelman, Combs, Latturner and Goodwin.