Beware Of The Extended Warranty Phone Scam

We have gotten questions from a few concerned customers who have been receiving live and/or automated phone calls regarding the warranty on their vehicle expiring soon, so we thought we better weigh in on the situation and let everyone know that these phone calls are a scam.

 Many consumers are confused by these phone calls because in many cases they have older vehicles that are not eligible for warranties. They are being contacted by a company representative advising that their vehicle warranty will expire in 2 days, the representative then claims the information was provided by the manufacturer that provided the original warranty. Consumers are then offered an extended warranty (usually a 5-year warranty) for approximately $175-$400 and asked to provide a credit card number. If the consumer asks any questions, they are told to contact the “Warranty Center” at a different 1-877 number.

 In some cases an automated call precedes the interaction with a representative, in this case the automated message informs the consumer that their warranty is expiring, and they can purchase a new extended warranty by pressing a number to speak with a live representative.

 The Better Business Bureau of British Columbia has released the names of the companies who are said to be selling the warranties, they are:

–         Canadian Auto Warranty Services

–         National Dealers Warranty

–         The Choice – Gold Key C/O Canadian Auto Warranty Services

–         World Wide Warranties Inc.

 Some tips if you happen to receive a suspicious phone call:

– Refer to your original vehicle documents. Read over your original documentation to see how and where an extended vehicle warranty can be purchased.

 – Start with your car dealer. Consumers interested in extended warranties should contact the dealer where they purchased the vehicle if they want to buy an extended warranty.

 – Be suspicious of low prices. Purchasing an extended warranty can cost anywhere from $1,000 to $5,000. It is a red flag when a five year warranty is sold for only $175

 – Check to see if the warranty provider is licensed. Extended warranty contracts on vehicles are considered to be insurance and are regulated under the Insurance Act. To confirm that the product you are considering is being offered by a licensed insurance company and a properly authorized insurance agent please contact the Financial Institutions Commission at 1-866-206-3030.

 Finally, NEVER give your credit card number or personal information over the phone to an unknown caller. If you are suspicious, take down a name and number and do your research with the tips above, if you think you’re being scammed – report it.

 If you have any questions, please feel free to contact us here at Davis Buick GMC and we would be happy to help you out.

www.davisgmctrucks.ca



 

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