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Prosecutors said the King of Prussia-based company sold customers full-coverage, after-market auto warranties then failed to provide full coverage.
According to the lawsuit, Concord's owner Alon Salmon also refused to give refunds to dissatisfied buyers and dodged their phone calls.
Authorities say they want restitution for Concord customers who "fell victim to the after-market vehicle warranty scam."
"These consumers were falsely led to believe that, in signing a contract, their vehicle repairs would be covered,” said AG Michelle Henry.
“Instead, Concord Auto Protect stole that peace of mind and money owed to customers for repairs by denying claims and withholding services. Many consumers who relied on their vehicles to get to work, doctors’ appointments, and grocery stores were left with broken-down vehicles or unpaid repair bills.”
Customers who believe they were a victim of the alleged scam can call the Office of Attorney General’s Bureau of Consumer Protection at 1-800-441-2555 or email scams@attorneygeneral.gov.
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