Car Warranty Scams
Many people have reported
receiving postcards or automated phone calls alerting them their car warranties are about
to expire or have already expired with a toll-free number they can call for
information. The postcards usually carry in bold letters a heading such as
"GM Notification" and the message
that "your warranty is about to expire," leading some recipients to
believe the sender is somehow linked to the dealer that sold them the vehicle
or to the manufacturer that made it.
The directions state that if
your warranty is about to expire or has expired, you should call the toll-free
phone number on the card for more information on extending or renewing your
vehicle's warranty. If you've considered taking them up on the offer think
again. Many of these warranty offers are nothing but scams.
The pre-recorded messages,
also known as "robocalls" or "voice blasting," have worried
thousands of people who pay thousands of dollars each to make sure their
vehicle's extended warranty coverage remains current. But thousands of others
who had placed their phone numbers onto a federal Do Not Call list are angry
because they can't get the companies to stop calling them.
If you have received any of
these calls or notices please be assured that Don Lorenz Inc. and any of
its entities have not sold, rented or in any other way given out your
information to anybody. Most of these companies may have gained the information
from state records using the freedom of information act or by purchasing
mailing list and just sending a generic letter out.
The companies using these
deceptive and sleazy sales tactics must be stopped and brought to justice. They
are making a mockery of the Do Not Call Registry and the government's rules
regarding telemarketing sales.
If you are the recipient of
one of these sales calls, file a complaint with the Federal Trade Commission.
The government has the power to sue these companies, fine them, and make them stop
any misleading sales practices.
- Beware
of any mailings that appear to come from your automobile manufacturer
offering extended warranty coverage.
- Never
give out personal financial information such as bank account numbers or
Social Security Numbers over the phone.
- When
considering an extended warranty, or any other telephone or mail
solicitation, always insist on getting the complete terms and conditions
of your agreement in the form of a written contract before you agree to
sign up, pay any money or provide your credit card information.
- Never
give out personal financial information such as bank account numbers,
credit card numbers of Social Security Numbers over the phone, unless you
are absolutely positive that you know the party with whom you are dealing.
- The
Federal Trade Commission
says consumers, before signing any extended coverage contract, should
fully understand its terms and coverage. The agency also stresses that
what consumers are actually buying is not an extended warranty but a
"service contract." "A service contract is a promise to
perform, or pay for, certain repairs or services. Although a service
contract is sometimes called an extended warranty,' under federal law, it
is not a warranty," the FTC said. "A warranty comes with the
original price of the car, whereas a service contract costs extra. It is
mainly this separate and additional cost that distinguishes a service
contract from a warranty."
- There
are many things to consider when you're offered an "extended
warranty" or service contract." Consumers should beware that
certain "extended warranties" do not always provide the peace of
mind and financial protection that consumers expected. Many of these
contracts, when closely scrutinized, exclude so many items that they
really provide very little coverage for outrageous prices.
- Check
out a business with your state Attorney General's Office and your local
Better Business Bureau before you agree to do business with them.
