Vehicle Service Contracts

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3.0.4 Seller shall not make any reference to the U.S. or state government, their laws or regulations, their criminal or civil penalties.

3.0.5 Seller shall state or imply that they are a state motor vehicle agency or similar department.

3.0.6 Seller shall not claim that repairs are paid in full if the service contracts they sell require a deductible.

3.0.7 In their entirety, advertisements shall convey to the consumer that Seller is a third party offering service contracts for sale that are not associated with the consumer’s original factory warranty.

3.0.8 Seller shall state in all advertising that they are not affiliated with a car dealer or manufacturer.

3.0.9 Seller shall not use logos, font type or color of manufacturers or car dealers.

3.0.10 Seller shall honor requsts to “opt out” or no longer receive advertising from Seller.

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- Sale Requirements

4.0.1 Seller shall disclose all of the material terms and conditions of the service contract to the consumer before obtaining the consumer’s consent to purchase the contract. These terms include:

- the identity of the marketer and the contract’s administrator and contact information for service or cancellation for both

- a description of the goods or services being offered including:

- the type of coverage

- the number of miles and/or years that the contract covers

- if a waiting period exists before the consumer can make a claim under the contract and how that period is determined

- whether the contract is transferable to a subsequent purchaser

- whether the contract is refundable and if so, the time frame within which the consumer cancel for a full refund

- whether the consumer must perform mandatory maintenance

- whether only used or non-original parts must be used to repair the vehicle

- any dollar limitation on the total amount of claims

- the price or the range of prices of products or services purchased by the consumer, including whether there are any additional charges including a deposit

- whether the consumer will be billed or automatically charged

- when and how frequently the consumer will be billed or charged

- the fact that the consumer must take affirmative action to cancel in order to avoid future billing or charges

- the specific and easy steps that consumers should follow to cancel the plan and avoid the charges

- the time period, if any, within which the consumer must cancel

- who will process the consumer’s payments

4.0.2 Seller must receive an affirmative response that the consumer accepts the material terms and conditions of the offer as described above.

4.0.3 Seller shall conduct a separate verification of the sale. Seller shall verify the following information:

- what plan the consumer has purchased including the months or miles covered

- who is the obligor on the contract

- that Seller is a third party seller of the contract

- a description of the level of coverage

- the waiting period

- that the consumer will receive the actual contract and how

- advise the consumer to review the coverage, terms, conditions and exclusions to confirm it meets the consumer’s needs

- Seller’s telephone number

- full refund rights

- confirmation of consumer’s name and address

- total cost of the contract

- down payment amount

- number of installments and amount of each installment, if any

- who will process the installments

- if on an payment plan, the card name and account number’s last four (4) digits that will be charged, on what day(s) and the duration of these charges.

4.0.4. During the verification, Seller shall obtain an affirmative authorization of any down payment amount being charged that day and any future monthly charges.

4.0.5. Seller shall provide the consumer with a copy of the contract. Seller must provide the consumer’s service contract electronically or mail the contract to the consumer within three (3) business days of when the consumer agrees to purchase the contract.

4.0.6 Upon request, Seller shall send a consumer a copy of the contract prior to purchase.

4.0.7 Seller shall record all sales calls including the verification and retain these recordings for a minimum of two (2) years.

4.0.8 Seller shall post the contracts of the coverage it offers online and shall direct consumers to this site.

4.1. Billing Authorizations

4.1.1. Seller must ensure that the consumer is aware of and understands the following: (a) the nature of the goods or services; (b) the fact that an offer has been made and that the offer has been accepted by the consumer; (c) that the consumer will be liable for making payment(s) for that sale; (d) complete information regarding full amounts to be paid and, if applicable, the frequency and number of payments ; (e) the specific source from which payments shall be made by the Consumer; and (f) that he or she was consented to have the payment sources charged.

4.1.2. For novel payment methods (anything besides a credit/debit card), Seller shall obtain the consumer’s “express verifiable authorization” (“EVA”). EVA can be obtained orally if the authorization is recorded,