Automobile Fraud: 6.9.1.5 Cost of Service Contracts, Other Voided Coverages
When a consumer purchases a vehicle, the dealer may also sell a service contract or extended warranty, GAP insurance, or other products whose terms may state that if there is a mileage discrepancy, the contract is voided.112 Then, even though the consumer may not have attempted to use the service contract or other product, the contract is worthless and the damages are the total cost of the product and any related charges for the contract. These should be actual damages under the Act, which should then be trebled.