Two area sellers of extended auto-service contracts that have been targeted by regulators and consumer advocates have found an ally in the Vehicle Protection Association, a trade group that today announced that the firms are the first companies of their kind to win the group's seal of approval.

The Selbyville, Del.-based association was started two years ago at a summit of service-contract executives in St. Louis. It bills itself as "America's Advocate for Consumer-Friendly Vehicle Protection Plans."

The first companies certified by the trade group are St. Charles-based National Dealers Warranty, which does business as StopRepairBills.com, and South County-based Nationwide Automotive Protection, formerly Warranty Activation Headquarters.

Both are being sued by Missouri Attorney General Chris Koster, who has said that the service-contract industry in the St. Louis area is "rife with fraud."

According to VPA press releases, the group scrutinized the companies to make sure they follow state and federal law, as well as the trade group's Standards of Conduct.

Those standards include requiring marketers to disclose coverage limitations, to record all phone sales, to conduct criminal background checks on new employees and to prohibit their employees from telling consumers that the factory warranties on their vehicles have expired or will expire soon unless the companies have information indicating that to be true.

Ken Brotherton, Nationwide's general manager, said in a statement that the certification "is a strong signal to our customers that we are a good company to work with."

Michael Carter, the Wentzville municipal judge and general counsel for StopRepairBills.com, said in a statement that the company "exceeds all regulatory requirements."