Jimmy Patronis announced an investigation by the Florida Department of Financial Services Division of Agent and Agency Services into nationwide vehicle service contract company CarShield for deceptive sales practices in Florida.
The Federal Trade Commission recently fined CarShield $10 million to resolve charges of deceptive advertising and misrepresentations by celebrity endorsers. Following the recent fines levied by the FTC, the Department will conduct a review of sales agents and agencies who promote and sell CarShield products.
CFO Jimmy Patronis said, “I’m appalled that consumers across the country were duped by Hollywood celebrities into buying CarShield auto repair warranties that weren’t worth the paper they were written on. It’s downright despicable to push a false narrative to consumers protecting themselves from the costs of unpredictable car repairs to just run away with their money in the end. These are the type of games that make people distrust their insurance company or warranty provider. My office is launching a full investigation into CarShield and these deceptive advertising and sales practices and we will take action on any sales representative that has mislead Florida consumers, including possibly pursuing criminal charges. In Florida, we take fraud and scams seriously and let this serve as a warning to companies who think they can come to the Sunshine State and defraud our consumers. If you feel you have been defrauded by CarShield or any other vehicle service contract or warranty company, report it to my office immediately. We need your tips to track down and hold bad actors accountable.”
To report misleading vehicle service contract or warranty sales practices to the Florida Department of Financial Services, please click HERE.