Koster reaches settlement with defunct Mo. company

Missouri Attorney General Chris Koster's office reached a settlement this week with the owners of a now-defunct vehicle service contract seller that operated out of St. Charles and marketed throughout the U.S.

Under the terms of the agreement, Dealer Warranty Services LLC, which also did business under the names Certus and Certus Assurance Group, and Vice President Theodore Conrad and President Jeff Zykan, are ordered to pay $60,000 to settle allegations of deception, unfair practices and unlawful insurance practices, according to a news release.

Dealership Warranty Services marketed nationwide largely through direct mail advertisements, which Koster's office says urged customers to call for a limited-time extended warranty program said to save thousands of dollars on repair bills. On the phone, salespeople would allegedly sell vehicle breakdown coverage with generalized and often misleading descriptions of the coverage. Many of the contracts were allegedly provided by a third party without the customers' knowledge, without the promised coverage provided. Consumers who asked for refunds also are said to have faced numerous objections and delays, according to Koster.

“Consumers who purchase vehicle repair coverage over the phone often later realize significant limits to coverage in the written contract,” Koster said in the release. “Before purchasing a service contract, we encourage Missouri consumers to carefully review its provisions to ensure that the contract contains everything promised.”

The settlement also prohibits Conrad and Zykan from selling unlawful vehicle service contracts in the Show-Me State. The settlement establishments a $55,000 restitution fund for Missourians who were sold coverage through the company, the release said.