Phone calls about your car warranty, be careful, it’s probably a scam

In recent weeks, I’ve been contacted by several people saying they’re being bombarded by “warranty” phone calls.  The messages are pre-recorded and indicate that your car warranty is about to expire and you need to renew it. People with newer cars and older vehicles (such as myself, I have an early 90’‘s Nissan) are receiving these calls.

Now the South Carolina Department of Consumer Affairs is reminding consumers to be wary of these pre-recorded messages and also any information received through the mail.  The office says these are scams and that it first warned consumers last August.  Now the office is putting out a new warning, saying it’s clear the warranty scams haven’t stopped and that the economy is making it worse.

According to the South Carolina Department of Consumer Affairs, the post card and telephone warnings direct consumers to call a toll-free number. Consumers who called these numbers were often asked for a “down payment” before they could even get information about the warranty. In many cases, the automobile was 10, 15 years or even older. The Department says it was was made aware of these scams by the South Carolina Automobile Dealers Association as well as complaints from consumers.

Now Consumer Affairs says the scam is taking a “treacherous” turn. It says con artists are attempting to align the scam with the economic downturn - something that consumers hear about daily in the news. One consumer complained that she received a telephone call, supposedly from a marketing firm representing “the Big Three Insurance companies for car warranties,“ and that the called warned that her Chrysler warranty would not be honored once Chrysler is in bankruptcy. She says the caller used high pressure tactics saying she needed to purchase a new warranty. The red flag for this consumer? She doesn’t even own a Chrysler.

Consumer Affairs says consumers shouldn’t be alarmed or pressured into purchasing an expensive “new” warranty they may not want or need - or a phony warranty that may not even exist. Consumers having questions about their warranty should look in the owner’s manual or better yet, call their Dealer.

Red flags consumers should watch for in car warranty scams:

· Mailings that appear to come from your automobile manufacturer offering extended warranty coverage.
· Pre-recorded phone calls. Telemarketers are not supposed to use pre-recorded messages unless a live person first asks you if you want to listen to the recording.·
- A live caller who insists your warranty is in peril because of the economic downturn.
· Never give out personal financial or other sensitive information like your bank account number or Social Security Number, or even your Driver’s License.
· If your car is older and the warranty expired years ago, the warning is bogus anyway.
· Always get information in writing before you agree to sign up or pay any money.

For more information on car warranty scams or other consumer issues, contact the South Carolina Department of Consumer Affairs at 1-803-734-4200.

We also chontacted with the Georgia Governor’s Office of Consumer Affairs, which has similar concerns. Sean Conroy in Atlanta told me that many of these calls are indeed scams. “If there is a call that is legitimate, the caller often makes it sound like you’re talking to your manufactuer, when it’s in fact a third party.  So consumers need to be aware of that as well.“

Conroy told me that the state of Georgia is icurrenlty nvestigating some of the companies making calls. For complaints in Georgia, call 800-869-1123.