Yahoo Autos Extended Vehicle Warranty Scam Company Hit With $6.6M Judgement
We have all answered the phone and the voice of the other end says something like “We are calling about your vehicle’s warranty.” It can be one more annoying spam calls, especially when the companies mask their number to make it look like a call coming from your own area code. Thanks to the FTC, one of these companies is now essentially out of business and is on the hook for over $6 million.
According to the Federal Trade Commission, a company called Kole Consulting Group which ran America Vehicle Protection (AVP) scammed consumers out of millions of dollars in 2022 by selling what was claimed to be “bumper-to-bumper” coverage. The policy that cost thousands of dollars offered protection that was anything but.
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Back in March, we relayed a report via The Verge, that AVP and other companies were in the FTC’s crosshairs for violating regulations. After an investigation, the FTC brought a lawsuit against Kole Consulting Group, the owner Daniel Kole along with other defendants that were running AVP. The result of the investigation and litigation resulted in a hefty judgment:
“Kole and AVP blasted consumers with illegal calls and made bogus claims about bumper-to-bumper warranties,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s order bans Kole and his company from the extended auto warranty industry and imposes a monetary judgment of $6.6 million, continuing the Commission’s aggressive crackdown on telemarketing fraud.”
