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

Date: October 12, 2010

Auto Service Contract Seller Barred from Idaho

(Boise) - A California vehicle service contract seller is permanently banned from doing business in Idaho, Attorney General Lawrence Wasden said today. Credexx Corporation of Irvine, California, and its owner, David Tabb, are permanently prohibited from telemarketing into Idaho or doing business with Idaho consumers. From approximately 2005 to 2009, Credexx sold vehicle service contracts in Idaho under the name Auto One Warranty Specialists.

The settlement is the result of a consumer protection lawsuit the Attorney General filed against Credexx Corporation earlier this year. The Attorney General alleged that Credexx misrepresented the material terms and conditions of the vehicle service contracts it sold and that Credexx mailed postcards to Idaho consumers misrepresenting that consumers’ vehicle warranties were expired or were about to expire. Allegedly, Credexx also telemarketed into Idaho without first registering with the Attorney General and telephone solicited consumers whose telephone numbers were listed on the National Do-Not-Call Registry.

Consumers who attempted to obtain refunds from Credexx reported to the Attorney General and to the Better Business Bureau that Credexx failed to refund consumers’ payments promptly.

“Consumers must be wary of service contracts that purport to provide their cars with bumper-to-bumper coverage,” Attorney General Lawrence Wasden said. “No service contract covers every car part or service and most contracts provide little, if any, coverage.”

Credexx agreed to a judgment in the amount of $88,000, of which $10,000 constitutes consumer restitution, $75,000 constitutes civil penalties, and $3,000 constitutes attorney’s fees and expenses.

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