AG Weiser sues COS company for alleged car warranty fraud
Nov 04, 2024
(COLORADO SPRINGS) — Attorney General (AG) Phil Weiser has filed a lawsuit against a local car warranty company, located off North Academy Boulevard near Palmer Park, for allegedly selling fraudulent car warranties.
On Monday, Nov. 4, AG Weiser filed a lawsuit against Champion Car Warranty and the company's owners Jack Yedid and Ralph Anteby after an investigation found they sold fraudulent car warranties and misrepresented their products and reputation.
Champion Car Warranty sells extended vehicle warranties and claims it will help people protect themselves from unexpected, costly repairs. According to AG Weiser, the warranty company charges upfront fees for coverage that is meant to last several years.
“Businesses that deceive consumers about the products and services they sell are breaking the law,” Weiser said. “In this case, the company and its owners misrepresented their reputation and even lied about making donations that support veterans. When scam artists like these defendants seek to take advantage of Coloradans, we will hold them accountable.”
Many were convinced to purchase the warranty by claims the company made online about its reputation. This included advertising high ratings on third-party review sites and being named "Best Extended Warranty" by Car Talk, as well as a member of the Vehicle Protection Association. The company also said they would donate to Operation Military Family for every new sign-up.
However, the state's investigation found the company had no relationship with any of the three companies mentioned above. The investigation found only a bounced check the company wrote to Operation Military Family in 2023. The investigation also found their online reputation was nonexistent or very poor even when it was five stars on Google and Trustpilot.
Champion Car Warranty often refused promised coverage and ignored attempts at communication.
Consumers and mechanics who attempted to reach the warranty company would typically not reach anyone or wait on hold with an automated recording that told them "You are number one, thank you for holding," and then their call would disconnect. Whenever someone did pick up, representatives would often deny claims and offer a "courtesy check" instead, which Champion would then fail to send.
Owners Yedid and Anteby are allegedly involved with other companies with a similar troubling history of selling fraudulent products. Patriot Warranty, Napa Warranty, and National Car Protect are all companies with links to Champion's owners and investigators found customer complaints about these companies failing to provide services.
For now, the company has been ordered to immediately halt all operations while the lawsuit proceeds.
Anyone who believes a company is engaging in deceptive or illegal business practices is encouraged to file a complaint with the Colorado AG at StopFraudColorado.gov or by calling 1-800-222-4444.