"Bumper to Bumper" Lies: The FTC Bans the Car Warranty Callers at American Vehicle Protection

Well, the Federal Trade Commission (FTC) went after one of the outfits making those calls, and it ended with lifetime bans.

So what happened?

Back in February 2022, the FTC sued American Vehicle Protection Corp. (AVP), a Pompano Beach, Florida company, plus related companies and their owners, in federal court in the Southern District of Florida (case no. 0:22-cv-60298-RAR).

According to the FTC's complaint, AVP and the other defendants:

• Called hundreds of thousands of consumers nationwide, many of them on the National Do Not Call Registry.
• Pretended to represent the consumer's car dealer or manufacturer.
• Promised "bumper to bumper" or "full vehicle" coverage for prices between $2,800 and $3,400.
• Falsely told people they could get a full refund within 30 days if they weren't happy.
• Took more than $6 million from consumers over four years.

"The truth is that the warranties didn't come from the manufacturer, didn't cover the repairs people needed, and weren't sold legally," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection.

The FTC said all of this broke both the FTC Act and the Telemarketing Sales Rule (TSR). The agency also went after them for not paying the fees to access the Do Not Call Registry and scrub their lists.

Read the FTC's complaint against American Vehicle Protection.

How it ended

Here's the thing ... the FTC didn't just collect a check. It shut the door.

• March 2023: Three companies and their owners agreed to lifetime bans from the extended auto warranty business and from outbound telemarketing.
• July 2023: Kole Consulting Group and its owner, Daniel Kole, got the same bans. The order includes a $6.5 million judgment, partially suspended because of inability to pay, and Kole has to surrender $500,000.
• October 2024: The FTC sent more than $449,000 in refunds to 18,255 consumers.

That's a lifetime ban. Not five years. Not "until you clean up your act." Done.

Why should you care?

Look, there are legit companies selling vehicle service contracts. If that's you, this case is your playbook for what NOT to do.

• DO NOT pretend to be the dealer or the manufacturer. Ever.
• Say what the coverage actually covers. If it's not bumper to bumper, don't say bumper to bumper.
• Pay for the Do Not Call Registry and scrub your lists. It's cheap compared to this.
• Don't promise refunds you won't give.

Am I right? None of this is hard. It's just honest.

And if you're buying leads or running calls for someone in this space, ask how they talk to people. Because "my vendor did it" isn't going to save you.