DON’T FALL FOR IT!
Extended Auto Warranty Solicitations

4/30/2009

Lexington, KY - With the tough economy, more people are hanging on to their cars longer. Thus the idea of an extended auto warranty might sound like a good idea. But are they? Some are and some are not.

Hundreds of Kentuckians have reported to your Better Business Bureau that they've been bombarded with phone calls and mailings offering these warranties These phone calls and mailings appear to be "urgent"….telling you that your automobile warranty has expired or is about to expire.

The mailings and postcards people have sent to the BBB look kind of scary..using big red letters and official looking names that are similar to a manufacturers. Your BBB has looked up some of these company reports for consumers checking them out, and found some interesting information.

For example, one postcard a consumer sent to us is from a company called Dealer Warranty Services in St. Charles, Missouri. The BBB in St. Louis gives this company a D-Plus rating, and reports that the Missouri Attorney General has a lawsuit pending against them.

If you are looking to buy an extended auto warranty, check out companies' reputations first with your BBB, to make sure you are buying from a reputable company. Carefully check the warranty's terms and conditions before buying. Beware of high pressure tactics used on the phone for your financial information. If you are on the Do Not Call list, report the violators to the Federal Trade Commission. If you suspect an auto warranty scam, don't fall for it.

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Be a "Don’t Fall for It!" informant! If you have something to share you believe may be a fraudulent offer or scam, please let the BBB know! Call us at (859) 259-1008 or toll-free, 1-800-866-6668, or email us at info@bluegrass.bbb.org.