What to do about deceptive practices regarding the purchase of extended insurance coverage?

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What to do about deceptive practices regarding the purchase of extended insurance coverage?

I purchased a car almost a year ago and was told by the finance guy that in order to finance the car, the bank required that I purchase the gap insurance coverage and extended warranty on the car. I went to look for another car and called the bank to find out the payoff on my car and what I’d be reimbursed for the extended warranty. I was charged $3499.99 in order to obtain my bank financing. The bank informed me, at that time, they couldn’t require me to purchase the extended warranty or gap coverage. Is this devious practice acceptable? Could this fraudulent claim release me from my contract, can the company be held liable and be made to pay my loan off for the fraud?

Asked on September 26, 2012 under General Practice, Kansas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The best way to address your complaint with a perceived unfair or deceptive insurance practice is to contact your state's department of insurance and make a complaint against the finance company and its representative for what you have written about in your question.

The departments of insurance for all states are in charge of investigating complaints from consumers and regulating the insurance industry within the state that the particular department is located.

From what you have written, the wrongful conduct would not release you from your automotive contract. However, you might be able to be reimbursed for the extended coverage that you might not have been required to purchase.


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