Lawrence Wasden the Attorney General of Idaho has settled the allegation issue with a Utah-based vehicle service contract provider violating the Idaho Consumer Protection Act. Actually, Gold Standard Automotive Network Inc. (GSAN) is offering customers with motor vehicle service contracts without insurance policies and warranties. According to the contract agreements, GSAN will be bound to provide replacement and repairing services to the vehicles in certain circumstances.
It is said that GSAN had sold motor vehicle service contracts in Idaho that were not covering the insurance policy liability. On the contrary, Idaho law demands insurance policy coverage for all kinds of motor vehicle service contracts. Besides, GSAN has also not revealed mandatory disclosures in its contracts.
It goes without saying that Lawrence Wasden the Attorney General of Idaho said that “unfortunately contract service providers run away when it comes to implement their contractual clauses leaving consumers without any service they have been paying for”. He further said that “to protect consumers, Idaho law demands from motor vehicle service providers to get liability insurance in case they are failed to meet with their contractual obligations”.
Lastly, under the terms and conditions, those Idaho consumers who purchased motor vehicle service contract from GSAN prior to November 1 can receive their funds by cancelling the contract and Wasden’s office will inform to eligible consumers via email.
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