Now a follow up to a story we first brought you in 2022, when the Federal Trade Commission (FTC) accused a Florida-based group of defendants of deceptively marketing "Extended Auto Warranty" programs. Fast-forward to today, and the FTC says it is sending more than $449,000 in refunds to consumers who were harmed by the scam.
The FTC says American Vehicle Protection Corp. engaged in a telemarketing scam that involved calling hundreds of thousands of consumers across the nation, to pitch expensive “extended automobile warranties” using deceptive telemarketing tactics. The FTC first took action against American Vehicle Protection in 2022, "charging that the operation made illegal sales calls in which it pretended to represent car dealers and manufacturers, and made false claims that its products offered “bumper to bumper” protection. " To settle the charges, the FTC says the defendants agreed to a lifetime ban from any outbound telemarketing business and from any involvement with extended automobile warranty sales. The defendants also paid a fine.
Now, as a result of the settlement, the FTC is sending checks to 18,255 consumers. Recipients will have 90 days to cash their checks, as indicated on the check. Consumers with payment questions should contact the refund administrator, Analytics, at 833-889-7400, or visit the FTC website to view frequently asked questions about the refund process. Remember, the FTC never requires people to pay money or provide account information to get a refund.
Case Summary
In February 2022, the FTC took action in federal court against a Florida-based group of defendants it alleges called hundreds of thousands of consumers nationwide to pitch them expensive “extended automobile warranties” using deceptive telemarketing tactics. According to the FTC complaint, American Vehicle Protection Corp. and related defendants bilked consumers out of more than $6 million over the last four years.
Under the terms of proposed court orders, three companies and their owners that were charged by the FTC with running the operation that scammed consumers out of millions of dollars would be permanently banned from participating in the extended automobile warranty market, as well as from any further involvement in outbound telemarketing. An additional court order announced in July 2023 bans an additional corporate defendant and its owner.
Learn more about FTC Refunds
Interested in learning more about the FTC's refunds to consumers? Check out its interactive dashboards for refund data that has a state-by-state breakdown of refunds in FTC cases. In 2023, FTC says its actions led to $330 million in refunds to consumers across the country.
Graphic Credit: Scott Maxwell LuMaxArt/Shutterstock.com.