A St. Peters-based company will pay nearly $400,000 to settle a complaint by the Missouri Attorney General’s office.
The Associated Press reports NRRM LLC, a St. Peters-based company that sells vehicle breakdown coverage, settled on Tuesday. Missouri Attorney General Chris Koster announced the agreement. The actual amount of the settlement is $399,400.
NRRM initially did business as StopRepairBills.com has recently been operating as Vehicle Protection Center. Koster said NRRM ran deceptive advertisements on radio and TV. Koster said the ads implied that NRRM pays 100 percent of consumer repair claims.
Koster also said the company trained sales staff to mislead consumers. According to the Associated Press, staff were taught to employ delay tactics to customers seeking a refund and give them only a partial refund.
As part of the settlement, NRRM agreed to change the way it does business.
According to Koster's release, the consent judgment establishes a fund of $187,200 with the purpose to give a full refund to consumers who were sold the coverage. The settlement also provides the state $25,000. The judgment imposes civil penalties and forfeitures in the amount of $187,200 and allows for potential future recovery for other complaints.