State Busts Auto ‘Warranty’ Seller

OLYMPIA, Wash. (CN) - Credexx, an auto warranty company, sold more than 1,300 virtually worthless service contracts and failed to tell customers about "restrictions, limitations and exclusions that significantly limit the value and use of the contract," the Washington attorney general says.

Credexx dba Auto One Warranty and Auto One Warranty Specialists, of Irvine, Calif., offered "bumper to bumper," "platinum," "gold" or "silver" coverage that allegedly covered all or most major car repairs and was "the same terms and coverage as a manufacturer's warranty," according to the complaint.

But Credexx customers found that cars were excluded from coverage because they had trailer hitches, some transmission repairs were not covered, Prius battery pack repairs were not covered, not were numerous other services, the state says.

And Credexx "made it difficult for consumers to cancel their contracts by providing consumers with false or misleading information on how to obtain a refund," according to the complaint.

Also sued is Credexx president David Tabb.

Washington seeks a permanent injunction, civil penalties of up to $2,000 per violation and restitution.

The complaint was filed in Thurston County Court.

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