With the closure of Chrysler and GM dealerships just announced, consumers can expect even more automated telemarketing calls hawking vehicle extended warranties, warns the Better Business Bureau.
Prior to the dealership closure announcements, the Better Business Bureau had seen a considerable spike in both complaints (400) and inquiries (140,000) from consumers who stated they received misleading mailers or high-pressure telemarketing calls claiming their auto warranty is about to expire.
As a result, the BBB is warning consumers to be extremely wary of telemarketing calls and mailers that claim their auto warranties have or are about to expire. “These deceptive solicitations could persuade car owners to purchase an extended auto service contract of questionable value,” said Pam King, president/CEO of the BBB serving northern Colorado and greater Wyoming.
BBB research shows that 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.
Many consumers have complained that the extended warranty contract has 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. Some consumers report difficulty in obtaining refunds.
Your 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.
For more information you can trust on avoiding fraud and identity theft, go to wynco.bbb.org or call 470-484-1348 or 800-564-0371 for reliable consumer tips and information.