FTC Sends More Than $449,000 to Consumers Harmed by ‘Extended Vehicle Warranty’ Scam

The Federal Trade Commission is sending more than $449,000 in refunds to consumers who were harmed by American Vehicle Protection Corp., which engaged in a telemarketing scam that involved calling hundreds of thousands of consumers nationwide to pitch expensive “extended automobile warranties” using deceptive telemarketing tactics.

The FTC 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 defendants agreed to a lifetime ban from any outbound telemarketing business and from any involvement with extended automobile warranty sales and paid a monetary judgement.

As a result of the settlement, the FTC is sending checks to 18,255 consumers. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, Analytics, at 833-889-7400, or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $330 million in refunds to consumers across the country.