Delaware-Based Auto Warranty Firm Faces Consumer Fraud Probe

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A Delaware-based auto service contract company is under investigation following complaints from customers around the country.

The News Journal reports that a recorded message at American Standard Auto Protection in Wilmington informed callers that the company would no longer accept new clients and couldn’t maintain obligations to current customers. The message told existing clients that they’d receive instructions on how to file financial claims, while those with active claims were told to contact their financial institutions.

Delaware Department of Justice spokesman Carl Kanefsky says the state’s attorney general’s office opened a consumer fraud investigation following accusations of improper denial of claims, failure to pay for warranted repairs and refusal to provide refunds after contract cancelations.

Officers listed on parent company filings didn’t return the newspaper’s requests for comment.

Information from: The News Journal of Wilmington, Del.