Calls are streaming in to the Better Business Bureau from bitter consumers who are upset over companies calling them about their “expired or about to be expired auto warranty.” Some of these calls are even coming on consumer’s cell phones. BBB warns to be extremely weary of any of these calls or mailers which claim your auto warranty had or is about to expire. BBB advises that the deceptive solicitations could persuade car owners to purchase an extended auto service contract of questionable value. Currently, there are several auto warranty companies contacting residents, and more are being added to the list. That is why the BBB wants to educate consumers on this information, in hopes that they don’t fall for it.
“The BBB receives complaints every single day from consumers who believe they have been deceived or ripped off by an auto warranty processing company,” said Charlie Mattingly, president of the Better Business Bureau serving Louisville, Southern Indiana and Western Kentucky. “Too often, these companies use telemarketing and deceptive mailers to make people believe their auto warranty is about to expire and that they must sign up now or lose their warranty. The companies are usually selling an extended service agreement that has no connection whatsoever with the auto manufacturer or the dealer from which the car was purchased. It's important to fully understand the cost and benefits of any agreement. Some of these agreements cost thousands of dollars and may have so many restrictions that the contract will fail to cover most problems with the car.”
The value of the various extended service contracts being sold also has been called into question. Many consumers complain that the contract had numerous conditions that might be difficult to meet. For instance, pre-existing conditions often are not covered, proof of maintenance records may be required and restrictions on authorized repair facilities and repair charges must receive prior approval making many of these contracts virtually worthless. Others report difficulty in obtaining refunds.
BBB offers the following advice for dealing with a firm selling extended auto service contracts:
- Never give personal information, including Social Security, bank or credit card numbers, over the phone to an unknown telemarketer.
- When considering an extended service contract or any other type of telephone solicitation, insist on getting a contract in which all terms and conditions are clearly explained before signing up or providing credit card or other payment information.
- Read your auto manufacturer’s warranty and contact your dealer or manufacturer so that you are not purchasing duplicate coverage.
- Before purchasing extended warranty coverage, consumers should always check the company out first with BBB at www.bbb.org.
- Consumers can place their phone number on the federal do not call list by visiting www.donotcall.gov. If the consumer is already on the list but continues to receive telemarketing calls, he or she can use the same Web site to report the incident to the FTC.
You Tube conveniently has a video of one of these annoying auto warranty sales calls. You can check it out at: http://www.youtube.com/watch?v=enE7S9GkVxo.
For more information you can trust on avoiding fraud and identity theft, go to www.bbb.org or call 1-800-388-2222.