It’s Not over Yet, but Auto Warranty Calls Should Drop Drastically
May 18, 2009

Tucson, AZ – May 18, 2009 – Federal Trade Commission (FTC) officials filed suit last week against two companies who are, in part, behind the illegal telemarketing campaign of "Your Car Warranty Has Expired."

For years BBB has warned of automated calls that claim your auto warranty is about to expire and urge you to act immediately to avoid a lapse in coverage.

“We get calls weekly from bitter consumers who are mad that they continue to get calls about their expired auto warranties,” said Kim States, BBB President. “They’re most frustrated with the fact that there’s no easy way to stop the calls because the option to do so doesn’t work, doesn’t exist or the representative rudely hangs up on them.”

According to steps taken by the FTC over the past two weeks, those calls should drop drastically. But even the FTC said in a recent press release that there’s no guarantee they will cease altogether, States adds.

 BBB offers the following tips to consider regarding illegal calls and auto warranties in general:
• When considering an extended service contract or any other type of telephone solicitation, insist on getting the contract sent to you before agreeing to or paying for anything.
• By FCC (Federal Communications Commission) regulation, the use of auto-dialers and recorded messages to cell phones is illegal and cell phone users should file complaints if they receive such calls—even if their cell number is not on the Do Not Call List.
• If you continue to receive calls of this nature, file a complaint with the Attorney General, your BBB at www.tucson.bbb.org and the FTC at www.donotcall.gov.
• Not all companies selling extended service contracts are misleading consumers or violating Do Not Call lists; before buying an extended service contract for your car, check the company’s reliability report for free at www.tucson.bbb.org.
• If you are considering an extended warranty, do your homework and understand what you need. Most people are familiar with the extended warranty that is sold at dealerships. Edmunds.com explains that this is sometimes called a "factory warranty" because factory-trained technicians perform the required work on the car. There are also "third-party" warranties which can save consumers money but are generally less convenient to use. Many third-party warranties require out-of-pocket payment for repairs before reimbursement. Weigh all these factors carefully before you make your choice.