Lubbock, TX May 14, 2009 – Do you own a car? Have you received phone calls and/or mail telling you the warranty is about to run out? If so, you are just one of millions of consumers receiving these kinds of phone calls almost daily. Consumers also receive postcards and other kinds of mail from auto warranty companies trying to sell extended warranties.
There are major auto manufacturers such as Chrysler and GM that are contending with bankruptcy or fighting off bankruptcy which is causing a lot of confusion surrounding the status of auto warranties. BBB is concerned that consumers are particularly susceptible right now to deceptive telemarketing phone calls and other solicitations that seem to be coming from their manufacturer regarding the status of their warranty.
“These companies are selling extended service contracts – basically a health insurance for your car if something should break”, stated Nan Campbell, president BBB serving the South Plains of West Texas. “Many consumers are complaining to BBBs after they purchased a service contract and found that there were many caveats and exemptions and it didn’t cover the work they needed on their car”, she continued.
Just recently, two senators asked the Federal Trade Commission (FTC) to crack down on these types of “robo-dialer harassment” calls. It is the BBB’s understanding that the FTC will be filing lawsuits shortly on several companies. Several states Attorney Generals are investigating and Verizon Wireless has sued two companies which settled out of court in April 2009 and they announced a new lawsuit against three more companies claiming that 2 million of their customers had been called.