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Dealer Warning – Fraudulent Warranty Program

Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

It has come to the CATA’s attention that a provider out of Chesterfield, Missouri, is selling customers a “Compass Protection Plan” and inferring that the plan is being recommended by and/or sold through the dealership when this is not the case. The customer of a complaining dealer, which dealer had no knowledge of nor connection to the company selling this product, received a letter stating:

 “[XYZ Dealer] would like to thank you for protecting your [vehicle]. We congratulate your decision to protect yourself from the escalating costs of mechanical repairs.” The false implication that the dealer sold or recommended the product, or was otherwise involved in the transaction, is obvious.

Furthermore, when this customer attempted to cancel the policy after less than 30 days, he was allegedly given the run-around and told he had to come into the dealership (which didn’t sell the contract) to cancel.

If any of your customers experience similar issues, we suggest you encourage them to complain to the Illinois Attorney General’s Consumer Protection Division.

Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282

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