Court Orders US Automotive Protection Services and its Owners to Pay $5.9 million in Civil Penalties for Deceptive Advertising and Unlicensed Vehicle Insurance Products
SALINAS, California - Monterey County District Attorney Jeannine M. Pacioni, together with the Napa County District Attorney, announced on September 30 that Monterey County Superior Court entered a judgment against Missouri-based US Automotive Protection Services LLC (“USAPS”), and its owners, Brandon Schrader and Michelle Schrader. The defendants were ordered to pay $5.9 million in civil penalties, in addition to restitution to California consumers, for false and misleading advertising related to the sale of unlicensed insurance products. From 2021 through 2023, USAPS sent more than 4 million deceptive advertisements to California consumers. The mailers were designed to create a false sense of urgency, leading recipients to believe they would lose their automobile warranty protection unless they immediately called the telephone number provided. Consumers who called the number were then subjected to additional misrepresentations by USAPS sales representatives, including claims th...