A Missouri state court judge and the U.S. Bankruptcy Court have approved a settlement agreement that could result in as much as $6,000 each being paid to former customers of John Chezik Honda. With the approval of these courts, Chezik will pay about $2.9 million under the settlement. This ends protracted litigation over vehicle service contracts that Chezik sold to customers between January 1, 1997 and December 22, 2003. Each customer paid more than $1,000 for the contracts, which were supposed to cover the costs of various parts and repairs for three years or 36,000 miles, whichever came first. The customers were told that if they didn’t use the contract during the contract period, the price of the contract would be refunded. Instead, customers who sought the refund found out the money-back guarantee applied only if they bought another vehicle from the dealership. In 2002, several customers filed a class action lawsuit against the dealership. In May 2007, a jury awarded damages against Chezik and the dealership subsequently sought bankruptcy protection.
Source: Kansas City Star
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