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Back in September of 2022 I received a question from a reader named Lisa asking if automobile extended warranties from CarShield were a good deal.
Truth be told I didn’t know enough about CarShield to immediately provide a reliable answer. But being the curious kind (and wanting to help Lisa if I could) I decided to check into it.
After carefully reading all the info provided on the CarShield website (including all the fine print) I came to the conclusion that CarShield plans really weren’t a great idea at all. In my humble opinion they were actually a poor value for the money.
I relayed that info and answered Lisa’s question in this post.
At that time I didn’t have any reason to believe that the folks behind CarShield were misleading anyone. I just believed the coverage plans they offered weren’t worth the monthly fees they charged for them.
Well, according the this action by the Federal Trade Commission (FTC), they actually were misleading customers with their advertising all along.
Long story short, CarShield (and a similar company named American Auto Shield) was recently forced by the FTC to return a total of almost $10 million to their customers as restitution due to their misleading ads.
I believe my initial poor recommendation of CarShield’s coverage plans is still valid and I also believe this sanction by the FTC confirms it.
To finish up, here’s a short video that gives a bit more info about the FTC’s findings in this case.
By the way, the next time you take your car to a repair shop because your “Check Engine” light is on, wouldn’t it be great to already have a rough idea of what the problem is before the mechanic even pops the hood? With this little gem you can. (#ad)