FTC Providing $4 Million in Full Refunds to People Tricked into Buying Bogus ‘Extended Auto Warranties’

The Federal Trade Commission is mailing 5,970 refund checks totaling more than $4 million to people who were bombarded with illegal robocalls and tricked into paying thousands of dollars for bogus “extended auto warranties.”

The checks, which are being mailed today and provide full refunds, are the result of the FTC’s extensive efforts to collect the entire $4,255,209 judgment entered against the defendants Fereidoun “Fred” Khalilian and his company, The Dolce Group Worldwide, LLC.

The FTC’s June 2010 complaint alleged the defendants, doing business under the name My Car Solutions, conned people into paying thousands of dollars by leading them to believe that the company was affiliated with auto dealers and manufacturers, and that it was offering to sell them extended auto warranties. In reality, no one received an actual warranty extension and people who tried to get their money back found it nearly impossible.

The final court order settling the FTC’s charges bans the defendants from telemarketing or helping others to telemarket, prohibits them from making any misrepresentations or omissions when selling any goods or services, and includes the $4.2 million monetary judgment.

Rust Consulting, Inc., the refund administrator for this matter, will begin mailing refund checks today. The checks must be cashed within 60 days or they will become void. Recipients should note that the FTC never requires consumers to pay money or provide information before redress checks can be cashed. If you have questions, please call 1-877-703-3427.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.