Class Action Filed Against Extended Car Warranty Schemers

If you recently received information in the mail regarding extended warranty information for your vehicle, make sure that you read the fine print. A class action complaint was recently filed in the U.S. District Court by an Illinois consumer, individually and on behalf of other customers nationwide who have purchased so-called "extended warranty" vehicle service contracts.

According to www.bankrate.com, the complaint details the ongoing, wrongful scheme of the company in question to obtain hidden interest charges and penalties from consumers who cancel their service contracts before the term of coverage expires. The complaint charges that the defendants make a practice of heavily penalizing car owners with large interest charges and marketing fees that are not spelled out in their contracts. This practice is in violation of the Federal Truth in Lending Act and the Illinois Consumer Fraud Act. If you receive an extended warranty offer, you may want to do some research before making a commitment to that company.

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