Attorney General Phil Weiser has initiated legal action against Champion Car Warranty and its owners, Jack Yedid and Ralph Anteby. The lawsuit, filed in El Paso County District Court, alleges that the company sold fraudulent car warranties and misrepresented their products and reputation. As part of the proceedings, a court order has been obtained to halt the company's operations temporarily.
Weiser stated, "Businesses that deceive consumers about the products and services they sell are breaking the law." He further emphasized that "the company and its owners misrepresented their reputation, and even lied about making donations that support veterans."
Champion Car Warranty marketed extended vehicle warranties as protection against unexpected repair costs, charging substantial upfront fees for long-term coverage. Their online claims included high ratings on review sites and affiliations with reputable organizations like Car Talk and the Vehicle Protection Association. They also promised donations to Operation Military Family for each new signup.
The investigation revealed no actual relationship between Champion and these organizations. A check written to Operation Military Family in 2023 was returned due to insufficient funds. Furthermore, contrary to their advertised ratings of "4.3 out of 5 stars" on platforms like TrustPilot and Google, Champion's online reputation was found lacking or negative.
The company reportedly failed to provide coverage as advertised, often refusing service despite claims of nationwide acceptance by dealerships and mechanics. Customers attempting contact through listed phone numbers frequently encountered disconnections or unresponsive automated messages.
Yedid and Anteby are linked to other companies such as Patriot Warranty, Napa Warranty, and National Car Protect. These entities allegedly engage in similar deceptive practices concerning affiliations, reputation, and product offerings.
The complaint was filed on October 31 in El Paso County District Court. Residents suspecting deceptive business practices can report concerns at StopFraudColorado.gov or call 1-800-222-4444.