GMAC Insurance Fined Over N.H. Mailing

November 12, 2007

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GMAC Insurance has agreed to pay a $50,000 fine to settle charges that the company sent deceptive direct mail advertising to 22,000 New Hampshire residents last year.

The state insurance commissioner said the mailing contained several deceptive statements, including one that promised people lower rates because they lived in neighborhoods where fewer accidents occur.

Insurance Department investigators said the company could not substantiate that claim.

The company also is sending letters to all residents who either responded to the mailing or filed a complaint about it. And it agreed to set up a system to review future advertising for accuracy.

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Latest Comments

  • November 20, 2007 at 1:16 am
    SFOInsuranceLady says:
    Thank you, Strawberry Lane.
  • November 20, 2007 at 1:01 am
    Strawberry Lane Ins says:
    Bravo SFO Insurance..... I could not have said it better myself!
  • November 20, 2007 at 12:55 pm
    SFOInsuranceLady says:
    Ralph, Even so....they are still a financial institution and GMAC is reaping the rewards. Since they are a financial institution, I feel that they should stay OUT of the busin... read more
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