America's Advocate for
Vehicle Protection Plans

Automotive Service Contract Regulations

Vehicle service contracts are valuable tools for consumers, enabling car and truck owners to insulate themselves from the costs of expensive repairs and prolong the serviceable lives of their vehicles.

Although the vast majority of vehicle service contract providers are committed to dealing fairly with consumers, the potential for abusedoes exist. To protect consumers, various government agencies have implemented enforcement mechanisms in the form of federal and state regulations.

The VPA takes industry regulations a step further through VPA Standards of Conduct – an ethical code that meets or exceeds federal and/or state regulations by defining acceptable business practices in several key areas, including the following:

Advertising & Telemarketing

Both regulatory agencies and the VPA are acutely concerned about the manner in which automotive service contract providers sell and market their products to consumers. Service contract companies are prohibited from engaging in illegal telemarketing activities like “robo-calling” and “voice-blasting”. They are also required to clearly identify themselves and comply with several additional requirements related to mailing lists, Do-Not-Call lists and other marketing practices.

Provider Claims & Messaging

Automotive service contract companies must make every possible effort to treat consumers honestly and avoid deceptive messaging or claims. Any claims that are made by providers must be substantiated and consumers must be conspicuously informed if they are required to take additional steps to receive special offers. VPA Standards also preclude members from using the term “extended warranty” or other vocabulary that can be misinterpreted by the consumer.

Customer Relations & Consumer Complaints

Throughout the industry, consumer complaints against vehicle service companies have dramatically decreased. Although consumer complaint resolution procedures may not be mandated by federal or state regulations, VPA Standards of Conduct require members to make an honest effort to resolve every consumer complaint. Service contract providers are required to grant full refunds up to thirty days after the sale of a contract, and to disclose both refund and customer complaint procedures before making a sale.

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