WASHINGTON, D.C. — The Federal Trade Commission (FTC) has commenced the distribution of over $449,000 in refunds to consumers victimized by American Vehicle Protection Corp. This action follows the FTC’s successful legal proceedings against the company for engaging in deceptive telemarketing practices related to the sale of fraudulent extended automobile warranties.
American Vehicle Protection Corp., a company notorious for its unscrupulous telemarketing operations, made unauthorized calls to hundreds of thousands of consumers nationwide. The company misrepresented itself as being affiliated with legitimate car dealers and manufacturers, falsely claiming to offer comprehensive “bumper to bumper” warranty protection. These misleading tactics not only breached telemarketing regulations but also misled consumers into purchasing costly and ultimately worthless warranty plans.
In 2022, the FTC intervened, charging the company and its affiliates with engaging in illegal sales practices. The legal resolution of the case resulted in a lifetime ban for the defendants from participating in any outbound telemarketing activities and from selling any extended automobile warranties. Additionally, they agreed to a monetary judgment as part of the settlement.
The FTC’s current refund distribution is a critical step in rectifying the financial harm caused to consumers. A total of 18,255 affected individuals will receive checks, and recipients are advised to cash them within 90 days as specified on the issued checks.
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