Car Service Contract Provider Facing Class Action Over Contracts that Allegedly Violate Washington Law

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A proposed class action alleges a vehicle service contract provider and its insurer have violated state law by selling to Washington consumers vehicle service contracts (VSCs) and protection product guarantees (PPGs) that lack certain required disclosures.

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The 10-page lawsuit claims Consumer Program Administrators (CPA) and Virginia Surety Company have failed to include in VSCs and PPGs certain initialed consumer statements, which Washington requires to be disclosed as prerequisites to issuing a contract in order to ensure that buyers understand their rights, a product’s limitations and available options.

The plaintiff, a Spokane resident, says that when she purchased a 2014 Land Rover Range Rover Evoque from an AutoNation in June 2022, the dealership sold her a “vehicle care protection” service contract on behalf of CPA for $399.

However, the suit contends that the VSC did not contain any statement initialed by the plaintiff outlining the conditions she must meet in order to maintain coverage under the contract, as required by state law. Per the case, the VSC also failed to disclose that the contract provider’s obligations to the consumer are guaranteed under a reimbursement insurance policy, nor did it provide requisite details about the policy.

In addition, the complaint alleges that the service contract did not include required statements initialed by the plaintiff that disclosed the work and parts covered by the agreement, information about the woman’s right to return the contract for a refund, any time or mileage limitations or any exclusions of coverage.

By failing to include these required disclosures in service contracts prior to selling and issuing them to consumers, the defendants have breached Washington’s Service Contract Providers Act and the state’s Consumer Protection Act, the filing claims.

The lawsuit looks to represent anyone who, within the past four years, paid for a vehicle service contract and/or protection product guarantee issued by CPA in Washington, in which the service contract or guarantee did not contain one or more of the mandatory consumer disclosures listed in RCW 48.110.075(2)(e)(i)-(vi).

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