agent Entrepreneur logo
MenuMENU
SearchSEARCH

Warranty Scam Defendants Agree to Court Order

FTC sued company, saying it fraudulently sold consumers extended auto plans, cheating them out of millions.

July 12, 2023
Warranty Scam Defendants Agree to Court Order

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

IMAGE: Pexels/Erik McIean

1 min to read


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.

Ad Loading...

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.

Topics:Industry

Originally posted on Auto Dealer Today

More Dealer Ops

Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →
Headshots of two male executives
Dealer Opsby StaffMarch 24, 2026

IA American Appoints Two Execs

Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.

Read More →
Dealer Opsby Hannah MitchellAugust 26, 2025

Franchises, Throughput Down in First Half

A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.

Read More →
Ad Loading...
SalesAugust 25, 2025

How to Build a High-Performance Sales and F&I Team

Performance and profits start with people chosen and led the right way.

Read More →
Dealer Opsby Hannah MitchellAugust 19, 2025

Buy-Sells Up in Q2

Kerrigan metrics show there’s plenty of demand, though many sellers are waiting to pull the trigger.

Read More →
F&Iby StaffApril 2, 2025

DOWC Powers the Future of F&I for NESNA

Company is providing a fully integrated F&I administration model to Nissan Extended Services North America’s dealer network.

Read More →
Ad Loading...
Industryby StaffMarch 26, 2025

March New-Vehicle Sales Healthy

Despite incentive spending not keeping pace with deliveries volume, consumers make their purchases ahead of tariffs impact.

Read More →
Product & Technologyby StaffMarch 13, 2025

New DOWC Program Debuts

Hybrid solution combines benefits of reinsurance and dealer-owned warranty companies.

Read More →
Dealer OpsJanuary 15, 2025

Carryover Rate Important for Auto Retailers

Understanding how it plays into inventory risk management is an important consideration.

Read More →
Ad Loading...
Trainingby StaffJanuary 13, 2025

Dealer Survey Finds Anxieties

Kerrigan Advisors poll shows percentage of retailers expecting lower profits, valuations is on the rise.

Read More →