Consumers nationwide continue to contact Better Business Bureau (BBB) with complaints about the vehicle service contract industry.
In 2018, BBB received more than 500 complaints involving 50 companies based in the St. Louis area, most of which are located in St. Charles County.
BBB advises consumers to use extreme caution when entering into an extended auto service contract for your vehicle. Consumers report to BBB they feel deceived by misleading advertising, which includes mailers, telephone sales representatives and radio and television commercials. Consumers also state they have difficulty canceling their policies and that requested repairs were not covered by policy administrators.
Over the past three years, consumers have filed nearly 1,500 complaints against companies in the vehicle service contract industry with BBB in St. Louis. Complaints against businesses in the industry increased 10.8 percent during 2018.
“BBB has been warning consumers about several extended auto service contract companies for more than a decade, yet many of the companies in this industry have done little to change how they do business,” said Michelle L. Corey, BBB St. Louis president and CEO. “Until this industry makes a serious effort to self-regulate to get rid of deceptive marketing practices and is more truthful about what is covered in the policies, consumers will continue to file complaints with BBB.”