Hi, I’m Orland Howell. For four years, I wrote about lawsuit settlements to help people understand hard legal stuff in easy words. This article explains the CarShield lawsuits. It talks about a $10 million settlement with the Federal Trade Commission (FTC) and new class-action cases. If you had a CarShield car repair plan, this is for you. I used very simple English so everyone can understand.
What Was CarShield?
CarShield was a company in Missouri. They sold vehicle service contracts, or VSCs. These were like extra warranties for your car. People bought them to avoid big repair bills after their car’s normal warranty ended.
For example, fixing a car engine could cost $5,000. A CarShield plan promised to pay most of that. Plans cost $80 to $120 a month. Their ads, with famous people like Ice-T or Chris Berman, said you’d have “peace of mind.”
But many customers had problems. Repairs were not paid. Car shops didn’t accept the plan. This caused lawsuits. By 2025, a big FTC settlement and new group lawsuits got a lot of attention.
The $10 Million Carshield FTC Settlement
In July 2024, the Federal Trade Commission, a government group that stopped unfair businesses, said CarShield’s ads lied. Their TV ads, phone calls, and celebrity talks confused people.
Problems with the Ads
- Fake Promises: Ads said plans paid for “all repairs” on big parts like engines. But the small print had rules that stopped many payments. For example, some engine parts weren’t covered. People paid monthly fees but still owed thousands.
- Wrong Shop Claims: Ads said you could use any car shop. But many shops said no because CarShield paid too little or too slow. Some people waited weeks for repair okay.
- Untrue Stories: Stars like Ice-T said, “CarShield pays for my car, so I don’t.” The FTC said this wasn’t always true. Some customer stories lied about savings, like saying “$9,000 saved” when it was less.
The FTC checked thousands of complaints. From 2019 to 2022, CarShield sold plans worth $600 million. Many people felt tricked. An FTC worker said, “People got headaches, not peace of mind.”
What the Settlement Did
In July 2024, CarShield and their partner, American Auto Shield, paid $10 million to settle. This money was for customers who got hurt, not for the government.
The settlement made new rules:
- No more lying about what plans covered.
- Ads had to show real limits clearly.
- Stars and customers had to tell true stories.
- Phone sales had to follow fair rules.
Refunds started in early 2025. If you had a CarShield plan and they didn’t pay for a repair from 2019 to 2023, go to ftc.gov to ask for money back. The court said yes to the deal in late 2024. You have until mid-2026 to ask.
This came after warnings. In 2023, the Better Business Bureau (BBB) pointed out problems. CarShield settled small cases in Missouri and Georgia before, but complaints kept coming. Over 3,000 people wrote to the BBB in three years.
Class-Action Lawsuits in 2025
Class-action lawsuits are when many people sue a company together for the same problem. In 2025, new group lawsuits went after CarShield. They used the FTC settlement to help their case.
The Big March 2025 Case
On March 21, 2025, a law firm called Sauder Schelkopf filed a lawsuit in a Missouri court, case number 4:25-cv-00363. Three customers from different states led it. They said CarShield didn’t keep promises in their contracts.
The lawsuit said:
- No Payment for Repairs: Contracts promised “100% coverage” for okayed repairs, but CarShield said no or took too long. One person waited months for an engine fix.
- Low Shop Payments: CarShield didn’t pay shops enough. They cut labor costs and didn’t pay for checking the car, so customers paid extra.
- Broken Promises: Ads and contracts said one thing, but CarShield did another. People paid fees but got big bills.
The lawsuit used the FTC case to show a pattern. It wants money back, better contracts, and fair repair payments. Thousands who bought plans since 2019 might join.
Other 2025 Lawsuit News
- May 2025 Cases: More people sued for lies and bad advice. Automotive News said some cases claimed CarShield hid plan limits.
- June 2025 Deal: CarShield settled with Endurance Warranty, another company. The details are secret, but it showed they had legal fights.
As of October 5, 2025, the main group lawsuit is still going. There’s no settlement yet. They started sharing proof in summer 2025. A judge might say if it’s a full class action by late 2025. If you can join, lawyers will tell you.
Legal experts say payouts in cases like this could range from a few hundred to several thousand dollars, depending on damages.
What Customers Said Went Wrong
People had many issues with CarShield. The BBB gave them 1.6 out of 5 stars from reviews. Here’s what people said most:
- Repairs Not Paid: One person said, “My transmission broke. CarShield said it was ‘wear and tear’ and didn’t pay. I paid $4,000 after $1,200 in fees.”
- Shop Problems: Another said, “No shop near me took CarShield. Getting money back took too long.”
- Slow Help: Some waited weeks or months for answers. A man in Detroit said his car sat broken for 90 days.
- Hidden Costs: Fees were bigger than ads said. Rental cars weren’t always free.
From 2024 to early 2025, the BBB got over 300 pages of complaints. Some people got part of their money back, like six months of fees, after arguing.
How the FTC Settlement Helps You
If you had a CarShield plan:
- Get Money Back: The $10 million is for people whose repairs weren’t paid from 2019 to 2023. Go to ftc.gov to ask for a refund. You have until mid-2026.
- Check Your Plan: Look at your contract. See what parts, like seals or hoses, aren’t covered.
- Think About Stopping: Some got all their money back through BBB complaints. Call CarShield at 1-800-588-8501 to ask.
CarShield said they got better in early 2025. They added 10,000 shops, helped more with rental cars, and used honest ads. But lawsuits say it’s not enough.
What to Do If You’re in a CarShield Lawsuit
If you’re part of this, here’s what to do:
- Keep Papers: Save repair bills, denial letters, and your contract.
- Tell Someone: Use ftc.gov or BBB to complain. It’s free and easy.
- Join the Group Lawsuit: If you get a notice, sign up. It costs nothing, and lawyers get paid if you win.
- Talk to a Lawyer: Firms like Sauder Schelkopf give free talks to see if you can join.
- Be Careful with New Plans: Check CarShield against car maker warranties before buying.
If they didn’t pay a repair, write an appeal and keep all papers.
What These Lawsuits Change
The FTC settlement made rules for all warranty companies. Ads couldn’t say “full coverage” without showing limits. This kept people from being tricked.
Group lawsuits want fairer repairs. If they win, CarShield might pay millions more. This could make all companies use clear rules for saying no to repairs.
For customers, this is good. Refunds help with money troubles. But always read the small print before signing.
CarShield’s Story
CarShield started in 2005 as a small company. It got big in the 2010s with TV ads. By 2020, they sold millions of plans.
Trouble came early:
- 2018-2020: The BBB warned about repair denials. Georgia sued over sales and settled quietly.
- 2021: Missouri checked ads and made CarShield pay a little.
- 2023: Complaints grew, so the FTC looked into it.
- 2024: The $10 million FTC settlement happened.
- 2025: Group lawsuits got stronger.
In early 2025, CarShield had an A+ BBB rating but bad customer reviews. They said they helped 4 million people, but others said this hid problems.
Tips for Picking a Good Car Plan
Not all warranty plans are bad. Here’s how to choose a good one:
- Read Everything: Get all terms before buying. Don’t trust “we’ve got you” promises.
- Look at Reviews: Check BBB or Consumer Reports. Pick plans with 4+ stars.
- Know Limits: Good plans pay for 80% or more of repairs. Ask about fees.
- Compare Plans: Try Endurance or car maker warranties.
- Buy from Trusted Places: Use car dealers or big insurance companies.
You can save money by keeping $1,000 to $2,000 for repairs instead of paying monthly.
Final Thoughts: Stay Smart and Safe
The CarShield lawsuits showed why honest ads matter. The $10 million FTC settlement gave money back and made new rules. The 2025 group lawsuits want more fairness. I’ve written about many lawsuits, and I know a denied repair hurts. Knowing your rights helps.
Disclaimer
This article is for general information only. It is not legal, financial, or professional advice. Orland Howell is not a lawyer or advisor. Information is based on public sources as of October 5, 2025, but may change. Verify details at ftc.gov or court records. The author and affiliates are not liable for any errors or losses from using this article. Consult a qualified professional for your situation. By reading, you agree not to hold the author or related parties responsible for any actions taken.
Explore More:
Hawthorne Residential Partners Lawsuit — 2025 Complete Guide, Claims & Settlement Updates
Native Shampoo Lawsuit: The 2025 PFAS Investigation, Class Action Chances & What Buyers Need to Know
CarGuard Lawsuit: 2025 Easy Guide: Claims, Class-Action Updates & What Consumers Should Know
Orland Howell is a seasoned content writer with four years of deep expertise in crafting compelling and informative content about lawsuit settlements. With a keen understanding of legal nuances and a talent for translating complex topics into clear, engaging narratives, Orland helps law firms, legal professionals, and clients communicate effectively. His work spans blog posts, articles, whitepapers, and website content, all designed to educate, inform, and drive results. Passionate about empowering audiences with knowledge, Orland combines precision, creativity, and industry insight to deliver content that resonates and builds trust.
