Pennsylvania Recovers $1.7M for Buyers of Car Repair Coverage Service Contracts
Pennsylvania Attorney General Josh Shapiro said his office has secured a court order for more than $1.7 million in restitution against a car service coverage firm he said denied claims for services and refused to refund payments.
The AG has charged Omega Vehicle Services, which did business as Delta Auto Protect, along with its manager Charles Seruya, with violating consumer protection laws.
Shapiro said consumers nationwide purchased vehicle service contracts from Delta Auto with the understanding that the contract would cover needed repairs but when consumers or repair shops attempted to get coverage or reimbursement, Delta Auto would deny claims and fail to honor their contracts. Some rcustomers said they attempted to contact Omega and Delta more than a hundred times with no success.
“Consumers were falsely led to believe that, in signing a contract, their vehicle repairs would be covered,” said Shapiro. “Instead, Delta Auto Protect blocked consumers at every turn, denying claims, withholding services, and doing everything they could to deny refunding consumers.”
Consumers paid anywhere from $1,000 to $3,000 in premiums to begin coverage for potential vehicle repairs. After Delta Auto accepted payment from consumers, many found that the business became non-responsive, even though its website alleged 24/7 customer service, and a 30-day money-back guarantee.
Since these consumers were unable to obtain the services outlined in their contract, the consumers would have to pay for repairs out of their own pockets.
This court order prevents Delta Auto and Seruya from selling these types of contracts to Pennsylvania consumers. The order sets aside $1,734,314.53 for customer restitution, $17,698.15 in business restitution, and civil penalties of $1,000 for each instance of a past or present violation of the consumer protection law – totaling $826,000.
Customers who believe they may have been a victim have until November 11 to submit a complaint form.
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