Horizons October 2008

HORIZONS e-NEWSLETTER
Volume 1, Number 2
Member issue

Update to members of activities of the Automotive Warranty & Service Contract Association, plus more…

Attorney General Update

This is an Alert from AGs offices! AWSCA has been informed that many AGs offices are considering “RECALL notices” to consumers, whether mailed or via phone, as “fraudulent”. This comes as a result of the seeming proliferation of them recently. If you are using the term “RECALL” in any of your marketing materials, we caution you to make absolutely certain that you are informing the recipient of an actual recall on their specific vehicle. If your materials do not meet these criteria, you could face substantial fines or worse.

OPT-OUT LIST

AWSCA is embarking on a process to save its members unnecessary time, expense and aggravation by collecting and making available to members, a list of persons (phone numbers) who have asked not to be called. Details are being worked out, so watch for this new program soon.

Council of Member Marketers

This new Council, a membership program of AWSCA, is being formed and established. If your firm is a member of AWSCA and a direct marketer, you are eligible for membership. Get a brief outline of the program and application from: larry@vpanet.org today. There’s no fee beyond your membership dues.

Attorney General Outreach Update

AWSCA’s legal counsel, Helen Mac Murray, recently met with assistant attorneys general in Missouri, Washington and Minnesota. All of the offices were very supportive of AWSCA’s plans and offered comments to the draft Best Practices. All of the offices agreed to assist the Association in its goal of identifying and prosecuting companies who do not comply with the law. Additionally, these offices agreed to provide the Association with consumer complaints received against automotive warranty companies. Mac Murray is meeting with Florida regulators on Friday, Oct. 10th. Three separate agencies in Florida are actively investigating the extended auto warranty industry. She plans to convince the regulators to allow the industry to self-regulate through the AWSCA Best Practices and Certification processes. AWSCA members could avoid costly investigations and prosecutions by being given time to allow the AWSCA’s programs to work.

Affidavits

We have received over 90 signed affidavits to date. (This does not include those received from finance companies and service providers as well.) If you have not completed one, please do so soon, have it notarized and fax it to us at 866 571 4560 (we'll even pay for the call).

Best Practices for AWSCA

The “AWSCA Best Practices” are in their final stages of APPROVAL. Once adopted by the Board of AWSCA, they will be distributed via e-mail to each primary delegate of the AWSCA member who can then distribute it to company personnel.

AWSCA Membership

Take this opportunity to encourage your colleague and business associates to join AWSCA. Attached is the AWSA membership application. They’ll want to be dues paying members so they can include their opinions on one or more of the committees and vote for recommendations to the Board. Equally important, while today everyone in the industry is receiving the communications and our "open-door policy", that door has closed, and ONLY MEMBERS will be receiving news and important updates. So, please join very soon so no one misses out.

AWSCA Policies

The following polices were recently approved by the AWSCA Board. They will be implemented shortly:

a. Investigations: After company is listed by AWSCA Board as being in "tier one" violation, name is to be sent to member Providers and member Finance companies by e-mail.

b. List of signers of pre-recorded messages Affidavit will be sent to same members.

c. Association will add Pass-code secured “Members-Only” pages listing: (1) tier one violators, (2) companies undergoing “stage-2” investigations, and (3) those companies that signed pre-recorded affidavits.

d. Policy for use of association’s name: No member of AWSCA may issue a news release or statement containing the name of the association without express approval in advance by one or more of the following: President. Executive Director or Attorney.

e. Affidavits: Marketers who wish to sign affidavits that are notably different from the AWSCA approved version will not be accepted or approved.

Service Contract Regulation in California

AB 1866, which would require certain retailers that sell service contracts to maintain copies for the duration of the contract, as well as information related to the terms and conditions of warranties or service contracts, was vetoed by Gov. Arnold Schwarzenegger (R-Calif.). The bill would have also provided that such information must be accessible to the holders of warranties and service contracts. The Governor expressed his belief that the provisions set forth in this measure were not of the "highest priority for California." Gubernatorial veto overrides, which are extremely rare in the State, require a two-thirds vote of each chamber of the General Assembly. This measure passed the Senate Aug. 5 by a vote of 22-11 strictly along party lines. The Assembly voted to concur revealing a subsequent partisan divide by a vote of 52-24.

Committee & Board membership

Thanks to those of you who signed up for a committee. The first two committees in operation are: the Best Practices Committee and the Certification and Enforcement Committee. If you want to serve on one of these, and your company is a member of AWSCA, please send me an e-mail (larry@vpanet.org) with your name, address, company, phone and e-mail and the committee name. I'll sign you up. Both committees are very active, so be prepared to spend some time and share your thoughts.

Other items

If you have any suggestions for us, please send me an e-mail at any time. I'll appreciate it.
Larry Hecker, Executive Director, AWSCA, Phone: 302 524 1150, larry@vpanet.org