Car Safe

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John Sours, Administrator of the Governor's Office of Consumer Protection ("OCP"), today announced that the CarSafe LLC and its principals, Mark Eckman and Nils Flodberg, have entered into a settlement with the agency. The Oklahoma City-based company, which markets vehicle service contracts to consumers nationwide, is alleged to have disseminated misleading direct mail solicitations and misrepresented material terms of its vehicle service contracts to Georgia consumers, in addition to violating a previous agreement with OCP. The agency believes that CarSafe's direct mail solicitations falsely represented: that its vehicle service contracts would "extend" consumers' factory warranties; that the company was affiliated with vehicle manufacturers; and that a consumer's vehicle warranty had expired or may be about to expire when knowing this was contrary to fact. CarSafe was also charged with making further misleading statements to create a false sense of urgency among consumers. What's more, when Georgia consumers called the phone number on the mail solicitations, CarSafe's salespeople allegedly claimed that 100% of car repairs were covered under its contracts, which was not true, and failed to disclose all the terms of its refund policies. In settlement of this matter, CarSafe and its principals have signed an Assurance of Voluntary Compliance, requiring them to pay a $30,000 civil penalty, $20,000 for investigative expenses and $50,000 in consumer restitution. In addition, CarSafe will provide cy pres restitution in the amount of $25,000, to be paid to the Georgia Governor's Office of Workforce Development's "Go Build Georgia" Education Foundation, for use in funding auto repair training programs.

BEWARE!!!! I received a notice in the mail saying my extended coverage had expired. I called CarSafe requesting more information. They informed me my coverage had ended 3 months prior and offered me an additional 5 yrs coverage for $2,800! My first hint of trouble came when David wanted me to buy the plan right then! He was obviously angry when I told him I would discuss this with my husband and call back. His actions led me to call my dealership. I didn't even think to question it until he was rude. But, anyway, my bumper to bumper extended coverage does not expire for 2 more years!!! Buyers beware, check your records before you buy anything!! Don't be fooled!!!