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Getting unwanted calls about extended auto warranties? Tell the FTC:

When it comes to telemarketing and extended auto warranties, what you’re promised on the phone…may not be what you get. Today, the FTC announced a settlement in its case against American Vehicle Protection — who it charged last year with running a telemarketing extended auto warranty scheme that cheated people out of more than $6 million.

According to the FTC, American Vehicle Protection cold-called people, lied about being affiliated with car manufacturers or authorized dealers, and misrepresented the terms of the extended auto warranties they were selling. They claimed to offer “full vehicle” protection and reimbursements within 30 days if people were unsatisfied. But the written contract — which they would only send after you paid a down payment — listed lots of exceptions. And the option for a refund within 30 days? It turns out that was really hard to get.

Thinking about getting an extended auto warranty

  • Get the coverage in writing before you pay. Make sure what the seller has told you matches what’s written in the contract. Few auto service contracts cover all repairs and maintenance.
  • Think twice before buying an extended auto warranty from a telemarketer. They may have no connection to your car’s manufacturer or an authorized dealer, even if they claim to.
  • Check if the company has a good reputation. Search for their name and words like “review” or “complaint” to see if people have had issues in the past.

Getting unwanted calls about extended auto warranties? Tell the FTC:

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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

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Michael W Roche
March 24, 2023


March 24, 2023

I don't pay attention to auto warranty companies. I think they're all crooked

Alan Kent
May 02, 2023

In reply to by Tom

And the worst of the group is Car Shield. Check them out at do not use their website to verify their lies!

June Perry
March 24, 2023

What you are talking about buying an extended warranty. This happened to me way back in 2003. I was talked into purchasing an extended warranty on my new Chevy truck. I paid $1500.00 for this warranty. I filed a claim through the state Attorney General after the Company went Busted and didn't keep their word. I think there were many person's that also got ripped off from that company that sold this warranty. I did receive $300.00 through the state after the state of Oregon Attorney filed a lawsuit. This experience sure taught me a lesson.

Terry Potucek
March 24, 2023

I don't know of any dealer or auto repair facility that I have personally contacted that accepts these so called third party extended repair warranties up front, meaning the dealer or repair facility is unwilling to wait for payment from them. Repair facilities want the customer to pay the bills and then YOU can try and get reimbursed from these extended warranty shysters. Good luck with that, Charlie. They are scams.

March 27, 2023

In reply to by Terry Potucek

Most of the extended auto warranties are bad, especially ones you buy from people who call you or from companies that send them to you in the mail. The only ones you can sort of trust are the ones from the dealers when you buy a new car. Those are not really worth it either. They don’t cover very much and you have till still have to lay a co-pay . I have never bought an extended warranty and I never will.

Ebrima Jobe
March 27, 2023

Thank you, you always provide useful information to consumers.
Keep up the good work.

March 27, 2023

My problem is that anyone can pay for lists from MV, and private sellers of lists on purchases, vehicle purchases, ... Now these marketing people are very wasteful and annoying. So I get all kinds of info on retirement investments etc. and we have been retired for decades. You purchase a washing machine. Have one so do not need tons of ads on washing machines.....

March 28, 2023

In 2016 I had sighed up for auto warranty and it cost me $500 from day 1...A few days after, I tried to get my money back after I found out they were not that great😠

April 05, 2023

Unwanted calls are annoying and only thing to do about that put them on do not call list it helps trust me it stopped all of my annoying calls it works

April 05, 2023

A warranty for a vehicle don't just call the first one and take there deal and if a car dealership offers you a warranty ask them first how much is it going to cost extra for it and ask them what it covers and before the warranty runs out ask if you renew it or if can get another warranty if you can if not call the dealership and ask them if you can renew it with them it is always good to ask questions before you buy your car exspecial when it comes to warranty's and buying a car

Nicholas Rivers
April 05, 2023

After deception of coverage and my bank account being charged just under 200.00 a month when I had to use the service I was told that I wasn't covered for the services I understood to be covered. Fraudulent and misleading me.

L. B.
April 19, 2023

Beware of another company called ASC, LLC. They are very pushy and persistent. They spoof local phone numbers, probably using burner phones. I also think they’re not located anywhere in the US. For the record, I have filed a complaint against them.