Thursday, December 9, 2010

Distinct Advantage Administrative Services ordered to stop selling illegal vehicle service contracts in Washington state

Our office has ordered a Federal Way, Wash.-based company to stop selling unauthorized vehicle service contracts in Washington state.

The order names Distinct Advantage Administrative Services, LLC, company principal Michael Phelps and former insurance agent Thomas L. Ross. Ross is a former Washington insurance agent whose license was revoked in March 2003. Nonetheless, he began marketing Distinct Advantage service contracts around October 2009 as an "agent" for the company.

None of the three are registered with Washington as a service contract provider.

Distinct Advantage sold at least 37 vehicle service contracts, totalling $26,468, through 6 car dealers. The contracts were not approved for sale in Washington. The forms state that Distinct Advantage is insured by Colonial American Casualty and Surety Co., but Colonial American has no record of any affiliation with Phelps or his company.

Here's a link to the full order.