AG sues Missouri auto company accused of deceptive practices

1 year 4 months 2 days ago February 22, 2016 Feb 22, 2016 Monday, February 22 2016 Monday, February 22, 2016 11:50:00 AM CST in News
By: The Associated Press

ST. PAUL, Minn. (AP) — Minnesota's attorney general is suing a Missouri company, accusing it of misleading consumers into unnecessarily buying coverage for auto repairs.

The lawsuit by Attorney General Lori Swanson was filed Monday in Dakota County against United Auto Defense.

The lawsuit alleges that UAD solicits Minnesotans into buying "vehicle service contracts" that provide third-party coverage for certain auto repairs.

It says the company misleadingly poses as a manufacturer or dealership and tells consumers via direct mail that there may be issues with their car or that their warranty has expired. The attorney general says some Minnesota consumers bought coverage for as much as $4,750 through UAD.

Sales manager Ken Bell told The Associated Press the company won't comment on the lawsuit.

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