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Auto Warranty Scam


Last Update: 6/02 11:33 am
Chrysler, GM, Ford oh my!  The fall of the mighty automobile empire show us we’re not in Kansas (or Detroit) anymore.  And, the voice we hear on our cell, home or work phone sounds like the Wizard offering us a solution to just buy an extended car warranty and we will at least have reliable transportation to continue to follow that yellow-brick road! 

Well, we hope by now you’ve gotten the message yourself and are spreading it to your family and friends – these intrusive and deceptive telemarketing calls seemingly coming from our car manufacturer (they’re not!) offering warranties (we don’t need!) are bogus – and illegal. 

The companies are actually selling extended service contracts that are essentially health insurance for your car if something should break.  However, many consumers complain that the contract (if they receive it) most often has so many exemptions, clauses, and caveats that the policy never covers the actual parts and labor performed when the car actually conks out! 

The good news in all of this? 

The FTC has launched a crack down and has filed actions against at least two of the largest promoters of phony extended auto warranties AND the telemarketing firm hired to carry out the illegal campaign.  The FTC actually describes these calls as “. . . one of the most aggressive telemarketing schemes the FTC has ever encountered”.  And, the FTC acknowledges the extraordinary cooperation of AT&T Mobility and Verizon Wireless in their investigative efforts.

So what to do if you’re still getting these calls?
  • File complaints at www.bbb.org, with the Maryland Attorney General and www.donotcall.gov.
  • Place your home and even your cell on the DoNotCall list by calling 1-888-382-1222

Now I have to remind you that not all companies selling extended service contracts are misleading consumers or violating the Do Not Call list.  If you are considering purchasing a service contract for your car, be sure and check out the company’s reliability report for free BEFORE you sign that contract at www.bbb.org

Remember the use of auto-dialers and recorded messages to cell phones is illegal and cell phone users should file complaints if they receive such calls to the Federal Communications Commission.  http://esupport.fcc.gov/complaints.htm

Talk soon – Angie
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