Warranty Co. Accused Of Selling Deceptive Contracts

Law360, Chicago (May 8, 2012, 6:06 PM EDT) -- A Bankers Financial Corp. affiliate was hit with a putative class action in California state court Monday alleging that the service warranties it sells for consumer products are deceptive and allow the company to underpay customer claims for repairs and replacements.

Lead plaintiff Clifford E. Wright alleges he and other consumers bought the service contracts from Bankers Warranty Group Inc. based on the same "ambiguous, deceptive and misleading terms and conditions," and that the company has snagged an unfair and anti-competitive advantage by marketing the contracts...
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