For Immediate Release
Media Contact: Bob Cooper
(208) 334-4112

Date: January 18, 2006

Idahoans to Receive Refunds from America 1st Warranty

(Boise) – Nearly 500 Idahoans who purchased used vehicle service warranty contracts from America 1st Warranty can expect to receive a refund of between $20 and $400 within one year, Attorney General Lawrence Wasden said. The refunds are the result of a settlement filed by the Attorney General’s Office against the Utah-based company.

“America 1st Warranty is refunding approximately $140,000 to Idaho consumers who purchased vehicle service warranties,” Attorney General Wasden announced today.

The Attorney General’s Consumer Protection Unit is sending notification to eligible consumers within the next week. Under the terms of the settlement agreement, Idaho consumers whose contracts were still in effect as of September 1, 2005, will receive a pro rata refund of their contract premiums.

“The notification from my office will provide important settlement information. We want consumers to understand that if they accept the refund, the service contract obligation is no longer valid,” Attorney General Wasden said. “Further, the notice will explain that to keep the warranty in effect or sue America 1st individually, the consumer must "opt out" of the settlement by January 31, 2006.”

America 1st has also agreed not to sell motor vehicle service contracts in Idaho unless it complies with Idaho law.  American 1st voluntarily stopped selling these contracts in 2004.

All used motor vehicle service contracts sold in Idaho must allow termination of the contract by the consumer and allow the consumer to complain to a third party about denial of coverage.

- End -

NOTE TO READERS - This settlement information has expired and is no longer available.

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