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Hooksett car dealer fined for uncovered warranties
Walter and the corporation pleaded guilty on Jan. 29, but sentencing was postponed to enable NHCars.net to pay $20,933 in restitution, according to New Hampshire Attorney General Joseph A. Foster and state Insurance Commissioner Roger A. Sevigny.
Indictments against Walter and the company charged both with recklessly taking money from consumers and failing to transfer those funds to the extended service provider that was offering the contract or warranty on the car sold by the dealership.
The investigation began when consumers complained to both the Attorney General's Office and the Fraud Unit of the state Insurance Department. Consumers reported buying cars and extended warranties from NHCars.net only to discover, when they tried to use it for repairs, that NHCars.net had not forwarded the contract or the payment to the service provider.
Additionally, Walter also offered an “in-house” warranty by charging a fee in exchange for his promise to repair the consumer's vehicle.
“If a consumer has any concerns about a dealership's authority to offer extended warranties, they should contact the Insurance Department,” said Sevigny. “Businesses and dealerships need to understand the law, and they will be prosecuted if they collect charges for warrant services in violation of the law.”
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