FLA. NEW CAR PURCHASERS RECEIVE $1.7M IN REFUNDS:

More than 1,200 central Florida residents have received refunds totaling $1.7 million under a refund plan for consumers who paid for various insurance products without their knowledge, during the purchase of an automobile. The Department of Financial Services recently completed a two-year investigation of two Clearwater-based auto dealerships, which resulted in the refund program and a corrective action plan being ordered by the department. Department investigators reportedly discovered that sales personnel at the two dealerships added ancillary insurance products, such as vehicle service agreements, scheduled maintenance plans, gap protection plans and vehicle VIN etch glass protection, to sales contracts without the customer’s knowledge. In some cases, customers were reportedly asked to sign blank applications for these products but were told there was no charge. Others never knew they purchased these plans, in which case they would not utilize any benefits. Refunds were ordered for affected consumers who purchased vehicles between April 1998 and March 2002. In addition, department investigators found that consumers were sold insurance products from an insurer not authorized to offer the products. As part of the corrective action plan, the dealerships were required to ensure that all insurance products offered are from insurers holding appropriate Florida licenses. More than 1,200 consumers received refunds for the previously listed products totaling more than $1.7 million.