BBB WARNS OF DECEPTIVE AUTO-WARRANTY SOLICITATIONS

3/17/2009

Fort Worth, TX – Better Business Bureaus across the country have received a flood of inquiries and complaints about misleading mailers or high-pressure telemarketing calls claiming that a consumer’s auto warranty had expired or was about to expire. During 2008, more than 140,000 consumers contacted Better Business Bureaus to check the legitimacy of companies claiming to sell auto warranties. The BBB warns consumers to be wary of calls or mailers relating to auto warranties. Some of those contacted have been told that their warranties were about to expire when they were not and that it was necessary to take immediate action to avoid a lapse in coverage. The approach is actually an attempt to sell an extended service contract and is not associated with the car manufacturer’s warranty. There were also complaints about the value of the extended service contracts being offered due to the conditions imposed on them such as proof of maintenance and authorized repair facilities.

In dealing with a firm offering extended auto service contracts, never give out personal information such as bank or credit card numbers to unknown telemarketers. Insist on receiving a contract before signing up or providing any payment information. Check your auto manufacturers warranty to see if it is still in effect and what is covered if it is; don’t purchase duplicate coverage. Before purchasing an extended warranty, check out the company with the BBB.