Sneaks and Scams: Auto Warranties

I just hung up on an automatic call, one of a dozen I’ve received in the last month telling me that my auto warranty is about to expire. Interesting, because Quartermain, my GMC van, is far beyond any legitimate warranty.

Yet I keep getting these calls, including at least two on my cell phone, which REALLY MAKES ME ANGRY because I have a prepaid phone and it costs me $1 for every day I use it. How the heck did these people get my cell phone number?

Well, what’s going on is the latest scam, and it seems I’m getting off lightly. According to MSNBC, a dozen or so companies are pitching these warranties and some of their victims (and I use that word deliberately) are getting called four or five times a day, even when they beg to have their number taken off whatever list the scammers are using.

Even people listed on the Do Not Call Registry are getting the pitches. Sometimes, the solicitation comes via postcard, wtih some recipients receiving a dozen a week.

And those who make the mistake of responding to these calls are finding out that—hardly surprising—the “warranties” offered are rip-offs, with expensive premiums and ridiculously limited coverage.

The first clue you are not dealing with a kosher company is when you ask that the paperwork be sent to you so you can look it over and the company says they can’t do that until you send a down payment.

(Never, ever, ever deal with someone who wants you to sign on the dotted line or send them money without letting you read a contract first. Never. Ever.)

The second is when you ask to speak to a supervisor and the caller hangs up. This also is not the behavior of a reputable company.

Reports are that these people often claim that they’re representing major automakers, and to prove it, they provide specific information, including registration numbers, for your car. This is also a lie. Ask for a callback number and tell them you’ll check with your local dealer. Then do it, before you agree to buy anything.

Extended warranties, even when offered by dealers, are rarely worth what they cost, but buying one from a auto-dialing company you’ve never heard off makes no sense at all. These crooks aren't worried about complaints filed with local regulators, so if you get a chance, write down their number and report it to the FTC. Maybe if we provide the Feds with enough info, they can shut these scammers down.