Attorney General Chris Koster today announced he has settled a lawsuit filed against California-based Farmers Insurance Exchange, Truck Insurance Exchange and Fire Insurance Exchange ("Farmers") for violating state telemarketing and No-Call laws. Under the agreement, Farmers will pay $575,000 to the state of Missouri. This is the largest amount ever paid by a telemarketer for Missouri No-Call and telemarketing violations.
The settlement agreement filed in St. Charles County Circuit Court also requires Farmers to adopt policies and procedures to prevent future telemarketing and No-Call violations, including agent training and annual audits of a sample of the company's agents. Farmers sells home, life and auto insurance through its independent agents.
Koster said the Attorney General's Office received more than 275 No-Call complaints over a four-year period about Farmers agents' harassing telemarketing practices. Many consumers complained that they continued to be contacted by Farmers agents after instructing them not to call. Unwanted telemarketing calls and harassing treatment by telemarketers annually rank highest on the list of complaints received by the Attorney General's Office.
"Farmers Insurance simply looked the other way while its agents were flouting Missouri's no-call law, illegally bombarding Missouri consumers with unwanted telemarketing calls," Koster said. "This historic settlement combined with new training requirements should ensure Farmers reforms its practices to protect Missouri consumers."
The settlement funds will be used for consumer education and advocacy, enforcement of Missouri's consumer laws, and to pay for the costs of the investigation and prosecution of the case.
Koster reminds Missourians they can register their telephone numbers with the Missouri No Call list online or by calling 866-No Call 1 (866-662-2551). To-date, Missourians have registered 4.5 million cell phone and landline numbers with the No Call list. Consumers who have registered for the No Call list but receive solicitation calls can file a complaint at 866-Buzzoff (866-289-9633) or online.