CT BBB warns consumers about deceptive auto-warranty solicitations

Complaints nationwide show pattern of deceptive tactics used to sell unnecessary extended warranties

Wallingford, CT - March 17, 2009 – Connecticut Better Business Bureau is warning consumers to be extremely wary of telemarketing calls and mailers claiming their auto warranty is about to expire.

Complaints reveal consumers nationwide are being bombarded by telemarketers who try to scare them into purchasing an extended warranty by telling them their vehicle’s warranty is about to expire, and if they don’t sign up right away the offer expires.

Not only are the telemarketers lying about the consumers’ coverage, in some cases they may be flaunting the federal Do Not Call Registry.

Connecticut Better Business Bureau President, Paulette Scarpetti, says the “extended warranties” are not what they appear to be.

“BBB files show that consumers are not being sold an extension to the manufacturer’s warranty but an extended warranty or service contract, and consumers are complaining about the value of these warranties and the numerous conditions that may be difficult to meet.”

These include the exclusion of existing conditions with the vehicle, proof of maintenance records being required, restrictions on authorized repair facilities and prior approval is required for repair charges, making many of these contracts useless.

In 2008, more than 140 thousand consumers across the nation contacted Better Business Bureau in an effort to confirm the legitimacy of companies claiming to sell these warranties, an increase of 40 percent over the previous year.

Your BBB offers the following advice when you are contacted by a firm selling extended warranty service contracts:

• Read your vehicle manufacturer’s warranty and contact your dealer or manufacturer to ensure you would not be purchasing duplicate coverage.
• When considering an extended service contract or any other type of telephone solicitation, insist on a contract in which all terms and conditions are clearly explained before signing up or providing any payment information such as a credit card number.
• Never give personal information, including Social Security number, bank account or credit card numbers over the telephone to an unknown telemarketer.
• If your vehicle’s manufacturer’s warranty has expired and you are interested in an extended warranty or service contract, you should always first check out the company at bbb.org

Consumers can place their telephone numbers on the federal Do Not Call Registry list by visiting donotcall.gov. If your telephone number is already on the list but telemarketing calls continue, the same web site may be used to report the incident to the FTC.

Founded in 1928, Connecticut BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. BBB offers objective advice and a wide range of education on topics affecting marketplace trust. BBB also offers complaint and dispute resolution support for consumers and businesses. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than three million local and national businesses and charities. For more advice on finding companies and businesses, start your search with trust at bbb.org.

Connecticut Better Business Bureau
94 South Turnpike Rd
Wallingford, CT 06492

This release was published on openPR.