Skip to content

FTC Reaches Settlement with Operators of Extended Automobile Warranty Scam

The Federal Trade Commission has reached a settlement in its lawsuit against Kole Consulting Group and its owner Daniel Kole. The FTC charged Kole and his company in February 2022 with running a telemarketing scam that pitched, what they called, their American Vehicle Protection program. Hundreds of thousands of consumers nationwide received calls to solicit purchase of a purported "extended automobile warranty." They claimed to be affiliated with automakers and deceived customers by telling them the product provided "bumper to bumper" protection.

Under the terms of their agreement with the FTC, Daniel Kole and Kole Consulting Group will receive a lifetime ban from any outbound telemarketing business. They will also be barred from having any involvement with extended automobile warranty sales. The settlement includes a $6.5 million monetary judgement as well.

Click here to read the FTC's press release on this development in the case.