A service contract industry group says one state's crackdown on hard-sell tactics by auto service plan marketers could ultimately lead to stricter industry regulation.
Missouri is lowering the boom on companies in the state that sell auto service contracts directly to consumers nationwide by using unethical, high-pressure sales tactics.
Missouri Attorney General Chris Koster sued 10 automotive service contract companies late last year. In a separate case, US Fidelis, based in Wentzville, Mo., went bankrupt in a high-profile meltdown in March 2010.
Koster convened a state task force June 23 to discuss stricter regulation. The Service Contract Industry Council, a nationwide lobbying group based in Tallahassee, Fla., asked the task force to adopt stricter licensing rules for telemarketers and companies that sell auto service contracts.