New Law Cracks Down on Controversial Industry

Megan Lynch

JEFFERSON CITY, Mo. (KMOX) – Missouri’s Attorney General says a bill signed into law this week will help clean up the auto service contract industry.

Chris Koster’s office has filed a dozen lawsuits against service contract telemarketers in the last year.  Koster’s investigations also assisted in criminal indictments against the founders of what was once one of the largest car service contract firms — USfidelis.

The law signed by Governor Nixon gives consumers 20 days to cancel a contract.    It also requires companies be licensed.  Plus it bans use of the word “warranty” or any suggestion contracts are affiliated with manufacturers or dealers.

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