Thursday, June 17, 2010

Consumer Direct Warranty Services in the news again

California's insurance commissioner, Steve Poizner, today ordered two California men and several corporations to stop operating unlicensed insurance companies and "using deceptive and illegal telemarketing."

The order names Robert Lewis Chapman, James C. Sletner, and several corporations they own and manage, including SafeData Management Services Inc., Warranty Administration Services, Inc., Consumer Direct Warranty Services, Inc., and Warranty Administration Solutions, Inc.

All of those are familiar names here in Washington state, where we in February ordered the same individuals and companies to stop transacting unauthorized insurance here.

The companies were originally also ordered to turn over a complete list of their Washington service-contract customers, and to notify those customers about the order. (Here's a link to our order.) Consumer Direct has asked for a hearing on the matter. UPDATE: This portion of the order has been stayed for now -- see this partial stay order.)

Under Washington state law, the order notes, anyone selling unauthorized insurance in the state remains “individually liable for the performance of the contract and for the full amount of any loss sustained by an insured under such contract.”

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