Minnesota Sues Company Over Vehicle Service Contracts

ST. PAUL, Minn. (AP) — Minnesota's attorney general is suing a Missouri company, accusing it of misleading consumers into unnecessarily buying coverage for auto repairs.

The lawsuit by Attorney General Lori Swanson was filed Monday in Dakota County against United Auto Defense.

The lawsuit alleges that UAD solicits Minnesotans into buying "vehicle service contracts" that provide third-party coverage for certain auto repairs.

It says the company misleadingly poses as a manufacturer or dealership and tells consumers via direct mail that there may be issues with their car or that their warranty has expired. The attorney general says some Minnesota consumers bought coverage for as much as $4,750 through UAD.

CEO Gary Primm told The Associated Press he was unaware of the lawsuit. He declined to comment until he learned of the allegations against his company.