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Rebecca Kelly Slaughter | Commissioner | Federal Trade Commission website

FTC issues refunds after 'extended vehicle warranty' telemarketing scam

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The Federal Trade Commission (FTC) is distributing over $449,000 in refunds to consumers affected by a telemarketing scam orchestrated by American Vehicle Protection Corp. The company was involved in making deceptive calls nationwide, offering costly "extended automobile warranties" under false pretenses.

In 2022, the FTC charged American Vehicle Protection with making illegal sales calls while falsely claiming affiliation with car dealers and manufacturers. The company also misrepresented its products as providing "bumper to bumper" protection. To resolve these charges, the defendants agreed to a lifetime ban from outbound telemarketing and involvement in extended automobile warranty sales, alongside paying a monetary judgment.

As part of the settlement, checks are being sent to 18,255 consumers who were impacted by the scam. Recipients are advised to cash their checks within 90 days as indicated on them. For any inquiries regarding payments, consumers can contact the refund administrator at Analytics via 833-889-7400 or visit the FTC website for more information on the refund process. Importantly, the FTC emphasizes that it never requires individuals to pay money or provide account details to receive a refund.

The FTC's interactive dashboards offer a state-by-state breakdown of refunds related to various cases. In 2023 alone, actions taken by the FTC resulted in $330 million being refunded to consumers across the United States.

The Federal Trade Commission's mission includes promoting competition and protecting consumer rights through education and enforcement. The agency assures that it will never request money or make threats in exchange for services or promises of prizes. Consumers can learn more about related topics at consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov. Updates from the FTC can be followed on social media platforms and through their alerts and blogs.

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