Attorney General Phil Weiser sues to shut down fraudulent car warranty company

Nov. 4, 2024 (DENVER) – Attorney General Phil Weiser announced today that he has filed a lawsuit in El Paso County District Court against Champion Car Warranty and the company’s owners Jack Yedid and Ralph Anteby after an investigation found they sold fraudulent car warranties and misrepresented their products and reputation. In addition to seeking fines and other relief to be determined at trial, Weiser won a court order immediately halting the company’s operations while the lawsuit proceeds.

“Businesses that deceive consumers about the products and services they sell are breaking the law,” Weiser said. “In this case, the company and its owners misrepresented their reputation, and even lied about making donations that support veterans. When scam artists like these defendants seek to take advantage of Coloradans, we will hold them accountable.”

Champion sells extended vehicle warranties it claims will help people protect themselves from unexpected, costly repairs. Champion charges large, upfront fees for coverage that is meant to last several years.

Thousands of consumers were convinced to buy a warranty from Champion by claims the company made online about its reputation. This included advertising high ratings on third-party review sites and being named “Best Extended Warranty” by Car Talk, as well as a member of the Vehicle Protection Association. The company also promised to donate to Operation Military Family “for every new sign up.”

The state’s investigation found the company has no relationship with Car Talk, the Vehicle Protection Association, or Operation Military Family, aside from a bounced check the company wrote to the charity in 2023. The investigation also found Champion’s online reputation, which the company baselessly and without attribution boasted was a “4.3 out of 5 stars” overall and five stars on TrustPilot and Google, was in fact nonexistent or very poor.

Beyond misrepresenting its reputation and affiliations, the company did not always provide the coverage services as advertised. Despite proclaiming that their products are “accepted by all dealerships & local mechanics nationwide,” Champion often refused promised coverage and ignored attempts at communication.

Consumers and mechanics attempting to reach Champion through phone numbers listed on the company’s website would typically either not reach anyone at all or wait on hold with an automated recording telling them “you are number one, thank you for holding,” only to have the line disconnect. On rare occasions when anyone picked up the phone, Champion representatives would often deny consumer claims, instead offering a “courtesy check” to those who pushed back hard enough. Champion would then routinely fail to send those checks.

In addition to owning Champion, Yedid and Anteby are allegedly involved with similar companies with a troubling history of selling fraudulent products. Patriot Warranty, Napa Warranty, and National Car Protect are all companies with links to Champion’s owners that appear to make the same or similar misrepresentations about affiliations, reputation, and products as those made by Champion. Like Champion, investigators found complaints from customers about these companies failing to provide promised services.

The complaint and temporary restraining order were filed in El Paso County District Court on October 31.

Any Coloradan who believes a company is engaging in deceptive or illegal business practices is encouraged to file a complaint with the Colorado attorney general at StopFraudColorado.gov or by calling 1-800-222-4444.

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