Better Business Bureau is warning consumers to be extremely wary of telemarketing calls and mailers that claim their auto warranty has expired 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.
As an outgrowth of our country's economic troubles, and to some extent problems in the auto industry, BBB is hearing from consumers who are being bombarded by telemarketers and mailers trying to scare them into thinking their auto warranty is about to expire and if they don't sign up now the offer will expire.
Not only are these telemarketers lying about the consumer's coverage, they are potentially ignoring federal laws such as the Do-Not-Call registry.
Complaints against Auto Warranty Processing Services rose by more than 40 percent over the previous year. In 2008, more than 140,000 consumers across the country contacted their BBB to confirm the legitimacy of companies claiming to sell auto warranties.
BBB research shows that in most of these cases, the consumer is actually being sold an extended service contract and, despite the impression given, the offer is not associated with the car manufacturer's warranty.
The value of the various contracts being sold also has been called into question, as many consumers complained 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.
What to do
BBB offers the following advice for dealing with a firm selling extended auto service contracts:
- Never give personal information, such as Social Security, bank or credit card numbers, over the phone to an unknown telemarketer.
- When considering an extended service contract or accepting 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.
BE AWARE: Consumers can place their phone numbers 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 Federal Trade Commission.
Kelvin Collins is the President/CEO of the Better Business Bureau of Central Georgia & The CSRA Inc. Refer questions or complaints about a company or charity directly to the BBB at (800) 763-4222, www.bbb.org or by e-mail to info@centralgeorgia.bbb.org or info@csra.bbb.org.
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