CarShield Settlement: $9.6 Million Refunded Over Denied Repair Claims

Who qualifies

• The FTC paid people who bought a CarShield vehicle service contract between September 2019 and September 2024 and had a repair claim denied.
• Both conditions mattered: paying for a plan was not enough on its own, and a denied claim is what identified who had been harmed by the coverage promises.
• No claim, application, or proof was required. The FTC identified recipients from company records and mailed checks directly.
• Payment came as a paper check that had to be cashed within 90 days of the date printed on it. That window has closed for the December 2025 mailing.
• Customers whose repair claims were approved and paid were not part of the refund group, even if they were unhappy with the plan.
• The order also bound American Auto Shield, LLC, which administered the contracts, but refunds went to consumers rather than to repair shops or dealers.

The CarShield settlement — what happened

1. 1

   July 31, 2024 — the FTC sued and both companies settled

   The FTC filed a complaint and a proposed stipulated order against NRRM, LLC, doing business as CarShield, and American Auto Shield, LLC, under FTC File No. 2223031. The Commission vote authorizing the filing was 5-0. The court entered the stipulated order on September 20, 2024, and the full $10 million judgment had to be paid to the FTC within seven days of entry.

2. 2

   What the FTC said the ads promised

   The complaint alleged many CarShield ads claimed that all repairs, or all repairs to "covered" systems such as the engine and transmission, would be paid for. One ad that ran 18,000 times on television told viewers that CarShield's administrators "make sure you don't get stuck with expensive car repair bills like this." Telemarketers reading company-written scripts told customers there was "just a $100 deductible for any covered repair," whether they used a dealer or a local mechanic.

3. 3

   What customers actually got

   According to the FTC, none of CarShield's vehicle service contracts covered all repairs, or even all repairs to "covered" vehicle systems — the plans contained numerous exclusions. Many repair shops would not accept the contracts, so customers could not always use the shop of their choice. Customers whose claims were denied got no rental car at all, and many with approved claims had to pay part of their rental car cost.

4. 4

   The celebrity endorsements were part of the case

   CarShield's ads featured personalities including the actor Ice-T and the sports commentator Chris Berman, who assured viewers a plan would provide "peace of mind" and "protection." The FTC alleged that while these endorsers said they had signed up for and used the plans, in many cases that was not true — they were not real customers and had never saved money using a plan. The FTC also said consumer endorsers claimed specific savings they had not achieved.

5. 5

   What the order requires going forward

   Beyond the money, the order bars CarShield and American Auto Shield from the misrepresentations in the complaint and from any other misrepresentation about a good or service, requires them to make legally required disclosures, and prohibits violations of the FTC's Telemarketing Sales Rule. It bars misrepresenting any endorser's ownership, use of, or experience with a product, and requires American Auto Shield to notify third-party marketers of the order and monitor their advertising. Reporting and compliance obligations run for up to 10 years.

6. 6

   December 2025 — the FTC mailed 168,179 checks

   The FTC sent checks totaling more than $9.6 million of the $10 million judgment, an average of roughly $57 per person. Recipients had 90 days from the date on the check to cash it, so that deadline has now passed.

7. 7

   If a check never arrived or expired

   Call Analytics Consulting, the refund administrator, at 1-855-298-8877 and ask whether a payment was issued in your name. The FTC never asks you to pay a fee, transfer money, or provide bank or Social Security details to release a refund — anyone who does is running a scam.

8. 8

   Vehicle service contracts are a recurring source of these cases

   This is not the only extended-warranty or auto-plan enforcement action the FTC has brought, and the pattern repeats: broad coverage promises in advertising, narrow exclusions in the contract. ClaimBee tracks these settlements as they land, including the automatic ones where the only thing that stops you being paid is a stale mailing address.

Frequently asked questions

Sources and official records

Every figure and date on this page was taken from the primary records below — court dockets, agency releases, and the settlement administrator's own notices. Payout averages we describe as averages are calculated from the official totals, not reported per-person estimates.

• FTC — CarShield Settlement refund page (168,179 checks, $9.6 million, December 2025)
• FTC case record — FTC v. NRRM, LLC (dba CarShield) and American Auto Shield, LLC, File No. 2223031
• FTC press release — the $10 million settlement, coverage claims, and celebrity endorsements
• FTC press release — December 2025 distribution of more than $9.6 million