A second payment is on the way to thousands of people who bought extended auto warranties from American Vehicle Protection. The checks are modest in the aggregate, but the short cashing window makes them easy to lose in a stack of mail. A recipient who overlooks the envelope could give up money the Federal Trade Commission has already identified as theirs.
The June mailing carries a 90-day clock
The FTC says it sent 9,074 checks totaling more than $186,000 in June 2026. The checks went to customers who accepted a first payment after the agency’s case against the telemarketer. Every check must be cashed within 90 days, so the deadline depends on the issuance date printed on that payment.
The calendar matters more than the per-person average. Dividing the stated total on the live refund page by the number of checks produces only about $20 apiece, though individual amounts can differ. A small check can still cover a prescription copay, fuel or part of a utility bill, and the recipient does not have to surrender it simply because the envelope resembles routine settlement mail.
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Why American Vehicle Protection owed customers money
The agency alleged that American Vehicle Protection made illegal sales calls, falsely suggested a connection to car dealers and manufacturers, and overstated what its costly service contracts covered. The defendants were banned from selling extended warranties and paid money to settle the case. The FTC used remaining funds for this second distribution after an October 2024 round returned more than $223,000.
Those allegations fit a familiar sales pattern. In its consumer guidance on auto service contracts, the FTC warns that callers may imply they represent a dealer or manufacturer, pressure a customer for a down payment, or sell coverage that duplicates an existing warranty. A service contract is not the same thing as a manufacturer’s warranty under federal law, even when a seller uses the phrase “extended warranty.”
Eligibility was determined from the earlier payment
This is not a new claims process open to everyone who ever heard an auto-warranty pitch. The second-round checks went to people who accepted their first payment. That detail means an unsolicited caller or email offering to “add” someone to the distribution in exchange for personal data is not part of the official program.
The FTC’s refund-program FAQ explains that agency payments can arrive by check, prepaid debit card, PayPal or Zelle. A legitimate refund never requires an upfront fee, a Social Security number or bank-account credentials. The official case page lists the administrator’s number, 1-833-889-7400, for a recipient who needs to verify the check.
The envelope deserves a careful inspection
Older consumers who sort mail for several accounts may mistake a settlement check for advertising, especially when the amount is small. The safer process is to compare the company name, administrator phone number and case description with the FTC page by typing the government address directly into a browser. That check avoids relying on a QR code, phone number or web link supplied by an unexpected message.
A genuine payment should be deposited or cashed promptly and recorded like any other check. The FTC says an expired check may sometimes be reissued if money remains in the fund, but that is not guaranteed. Waiting until after the 90-day period turns a straightforward payment into a request that depends on remaining funds and administrator procedures.
The refund also flags a continuing sales risk
The enforcement case is finished, yet extended-warranty pitches continue across the market. A caller’s knowledge of a vehicle’s make, model or age does not prove a relationship with the manufacturer. Before buying, a consumer can compare the offered contract with the factory warranty, identify exclusions and deductibles, and ask who will still be responsible for claims years later.
The official refund page offers the cleanest final test for this payment: 9,074 second-round checks, more than $186,000 in total, and 90 days to cash each one. For the people already selected, the financially useful move is neither to pay a fee nor to file a new claim. It is simply to verify the envelope and deposit the check before its printed window closes.
Recordkeeping matters after deposit
A recipient should also keep a copy of the check stub and the case page with tax records. The FTC generally does not issue a Form 1099 for its refunds, but its FAQ says a tax form will accompany a payment when federal reporting is required. The amount and the reason for the payment can matter if a tax preparer later asks whether it replaced a previously deducted business cost or represented another kind of recovery.
If the named customer has died or changed a legal name, the check should not be altered or signed over casually. The FTC’s refund FAQ directs recipients to request a corrected or replacement payment in writing through the administrator. That process may take longer than a normal deposit, making early review of the payee name another reason not to leave the envelope unopened until the end of the 90-day period.
This article was researched and drafted with AI assistance and reviewed against the linked primary sources.
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David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
