We all answered the phone and the voice on the other line said something like “We are calling about your car warranty.” That could be another annoying spam call, especially when companies hide their number to make it look like a call is coming from your own area code. Thanks FTC, one of these companies has basically gone out of business and is struggling for over $6 million.
According to the Federal Trade Commission, a company called Kole Consulting Group that operates US Vehicle Protection (AVP) defrauded consumers of millions of dollars in 2022 by selling what was supposed to be insurance “from start to finish”. Thousands of dollars worth of policies have provided protection like nothing else.
Return In March, we forwarded a report via precipicethat AVP and other companies were targeted by the FTC for regulatory violations. Following an investigation, the FTC sued Kole Consulting Group, owner Daniel Kole with other defendants running AVP. The results of the investigation and litigation resulted in a heavy verdict:
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said: “Kole and AVP have been attacking consumers with illegal calls and making bogus claims about out-of-the-box warranties. “Today’s order bans Kole and his company from the extended auto warranty industry and imposes a $6.6 million fine, continuing the Commission’s vigorous crackdown on continued fraud. telemarketing.”
However, don’t expect AVP to make that much money anytime soon. The large sentence was suspended in part based on the defendant’s inability to pay. I’m just as shocked as you are that a scam operation doesn’t have a large amount of liquid assets at willing to pay for his own transgression. Mr. Kole will have to hand over $500,000, and if the FTC finds out that Kole or AVP lied about their inability to pay, Full judgment is to be expected.
In addition to the fine, AVP has agreed to permanently ban the marketing of extended auto warranties and overseas telemarketing. While the FTC often plays the “mole” scam when one person is taken down and the others show up, it’s good that at least one company has faced justice.
I used to get calls from companies like this all the time and I didn’t get a call in a while. When they call, I will use a tip from Jason Torchinsky, a Jalopnik alumnus, he will say he has a very old or very expensive car. I want to say that my daily driver is a Bugatti Chironand they will hang up immediately.
