Posted on 12/24/2025 8:49:52 AM PST by Leaning Right
Most drivers don’t expect to hear from the federal government—unless something has gone very wrong.
But this month, more than 168,000 Americans opened their mailboxes to find checks from the Federal Trade Commission, all tied to a case that exposed widespread deception in the vehicle service contract industry.
*snip*
Many drivers believed they were signing up for protection that covered major repairs, sometimes paying as much as $120 a month. Yet when they needed help, they discovered that the “coverage” often vanished behind exclusions, denials, and carefully crafted contract language.
(Excerpt) Read more at newsmax.com ...
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Most experts advise putting a little money aside each month for emergencies instead. In the long run you’d be much better off.
The best thing is to be “self insured” for minor expenses and just buy catastrophic insurance in the case something really big happens.
Even if the insurance is honest, it actually costs them money for processing claims, so they do not want to be bothered by small claims.
I KNEW ALL THESE BS COMPANIES WERE A SCAM!
This ‘bump in the road’ has not stopped Car Shield’s advertising program.
My mechanic said forget about these repair insurance contracts, that they’re mostly scams. . He added that there a pain in the neck for his shop because his customers look to him to help collect on the promised monies. Which, he added, he’s rarely really able to do— the insurance companies usually simply refuse to pay.
Best Extended Car Warranty Companies 2025
paid advertising
The article does not cover what these checks are based on and how an amount is determined. Are the checks just refunds for premiums paid. Or are they checks to cover claims that were made? Yet the article rambles on and on about the same things. Such poor journalism today.
Who’s the muskrat-mouth dude who looks like he has ill-fitting wooden dentures? It’s simply nauseating to watch him talk. It smacks of LIAR/CON ARTIST.
> paid advertising <
Right. Any “review” that includes a link to buy the product is not a review at all. It’s paid advertising, as you noted.
ICE-T doing a Carshield commercial, who on earth would give money after listening to that?
> My mechanic said forget about these repair insurance contracts, that they’re mostly scams. <
I was talking to a car dealership mechanic about that. He gave me an example. He said his dealership charges $200 an hour to rebuild a transmission. CarShied would reimburse them at $17 an hour. The customer must make up the rest.
After the deductible, of course.
These repair insurance companies say you can go to the mechanic of your choice. What they don’t say is that they won’t cover the entire fee.
Never trust cop-hater Ice-T.
Ice T - bad actor and former rapper.
They’ve run on conservative podcasts too.
The only extended warranty I trust are CPO gurantees.
Certified Pre-Owned. Where the dealer and the manufacturer honor the costs.
Just this year I had my Nissan Frontier’s transmission replaced free by the CPO warranty. A $9,000 job.
Although I think Carmax warranties are trustworthy. Maybe
Most of these are pyramid schemes.
Many drivers signed onto “CarShield” sometimes paying as much as $120 a month.
Believing the ads that they were signing up for protection that covered major repairs, they discovered “coverage” vanished behind exclusions, denials, and carefully crafted contract language.
Earlier two brothers ran an “auto service contract” company that went under for fraud.
Darain and Cory Atkinson, were co-owners of the now-defunct U.S. Fidelis.
The Missouri-based company, which operated under names like “National Auto Warranty Services” and “Dealer Services,” was accused of numerous deceptive practices, including:
Misleading consumers about what repairs were covered by their extended service contracts.
Falsely claiming affiliation with major automakers like Toyota, Subaru, and BMW.
Using high-pressure sales calls.
Plundering over $101 million from the company for personal use, leading to its bankruptcy in March 2010.
The brothers both pleaded guilty to state and federal charges of fraud and tax evasion, and were sentenced to prison.
They were also permanently barred from selling auto service contracts or telemarketing in several states as part of a settlement with multiple attorneys general.
Sounds like my homeowners insurance.
My husband’s recently deceased best friend was very gullible when it came to things like CarShield. He found out the hard way that it was absolutely worthless.
Speaking of buying into sketchy things, does anyone know anything about CashApp? I hear mostly, black people talking about using it on courtroom, etc. videos. His friend recommended it to us, but I was leery of trying it.
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