Warranty Scam Defendants Agree to Court Order

Defendants in a Federal Trade Commission lawsuit over a telemarketing campaign to sell extended automobile warranties have agreed to a proposed court order banning them from the industry.

The FTC sued operators of what it calls a telemarketing scam who it says called hundreds of thousands of consumers in February 2022, cheating them out of millions of dollars, the agency said in a statement.

Kole Consulting Group and owner Daniel Kole are the defendants in the case involving American Vehicle Protection. The FTC says the operation made unsolicited phone calls, claiming affiliation with automakers and offering products providing “bumper to bumper” 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,” said FTC Bureau of Consumer Protection Director Samuel Levine in the statement.

The proposed court order, which awaits a district court judge’s signature, bans the defendants from extended auto warranty marketing and outbound telemarketing activity.

The order’s monetary judgement of $6.6 million is being partially suspended due to the defendants’ inability to pay, the FTC said, leaving $500,000 in required payment.

The FTC settled with other defendants in the case in March.