‘Valueless warranties’: Harrisburg car dealership must refund consumers, Pennsylvania AG says

A Harrisburg car dealership must pay a $10,000 fine plus restitution for allegedly selling consumers “valueless warranties," the Pennsylvania Attorney General’s Office announced Tuesday.

Paxton Associates, Inc., which does business as Faulkner Honda, sold warranties that had no meaningful value beyond a manufacturer’s warranty that was already included in the purchase price, the Attorney General’s Office claimed. Consumers typically paid roughly $1,000 for the allegedly bogus warranties, which were often sold to consumers who entered short-term lease agreements for new cars, the Attorney General’s Office said.

Faulkner Honda was accused of violating Pennsylvania’s consumer protection law and regulations that govern auto sales. As part of a settlement with the Attorney General, Faulkner Honda agreed to pay a $10,000 fine and restitution to affected customers.

"This dealership took its customers for a ride by encouraging them to purchase an additional warranty that had no value,” Attorney General Josh Shapiro said in a statement. “If you were a customer of the Faulkner Honda dealership and believe you have been a victim of this deceptive sales tactic, you may be eligible for restitution and should contact my office.”

Consumers who believe they’re victims of the sales tactic have 90 days to file a complaint with the Bureau of Consumer Protection, which can be reached at 800-441-2555 or scams@attorneygeneral.gov.

Faulkner Honda, which denies any wrongdoing, declined comment.

Faulkner Honda sells new vehicles that come with a standard, 36-month, 36,000 mile manufacturer’s warranty, according to the settlement. As deals came to a close, the dealership offered and sold an additional warranty that provided the same term of coverage but was less comprehensive, the Attorney General’s Office said. The additional warranty failed to add any value for customers who leased new vehicles for 36 months, the Attorney General claimed.