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SALT LAKE CITY — CarShield ads promised that "you'll never pay for expensive car repairs again." But many Utahns who bought vehicle service plans from the extended warranty provider found their repairs were not covered as promised in those ads.
"Deceptive" and "misleading" are words used by the Federal Trade Commission to describe ads put out by CarShield.
Scott Dumas of West Haven, Weber County, was one of the many Utahns who saw the ads. He purchased a vehicle service plan for his truck. But when its engine needed replacement, he told me the warranty would not pay.
"It sounded promising from the all the TV ads and all the positive testimonials," Dumas said of the CarShield extended warranty advertising.
It was a similar story for Daniel Waters in Millcreek. CarShield also refused to cover the cost of repairs to his truck's engine manifold.
"I'd like to get approximately $2,500 or $3,000 back on the repair that I had to pay for," Waters told me.
In both cases, we reached out to CarShield on their behalf, and their issues were subsequently resolved.
But Waters and Dumas are far from being isolated cases, according to the FTC. And now, money is coming back to CarShield extended warranty customers.
$10 million settlement
The FTC is sending 168,179 checks totaling more than $9.6 million to eligible people who paid CarShield for a vehicle service contract between September 2019 and September 2024 but had their claim denied.
While the settlement was reached in August 2024, the checks are now finally being sent. If you receive one, the FTC says you have 90 days to cash it.
