Wednesday, April 22, 2009



The calls go out 24/7, mostly to cell phones! Thus speaketh the robot: Your warranty is about to expire, this is your last warning, this is a final offer - I thought that I had them beat at one point, but in retrospect, having worked at a "call center" I know that in telemarketing no matter what action you take after telling someone they will be scrubbed from the list, those lists are so overcirculated with so many different versions floating around (even within one office, all residing on different supervisor's machines) it is impossible to get numbers off calling database lists.

If you are the recipient of one of these sales calls, file a complaint with the Federal Trade Commission. The government has the power to sue these companies, fine them, and make them stop any misleading sales practices. Feel free to leave your remarks in one of my "comments" sections below. By the way, if you live in Oklahoma, the scam is totally illegal there! KOCO reports "An Oklahoma insurance fraud investigator got one of these calls at her home, and that prompted an investigation. The investigation pointed to the company VSI Vehicles Services, Inc., also called Warranty Solutions, Inc.

The commissioner issued a cease-and-desist order that said clear and convincing evidence was found that the company "has engaged in the business of insurance without being licensed" and "has engaged in certain acts that constitute unfair or deceptive trade practices."

The order means VSI can no longer offer insurance or warranties in Oklahoma, but it does have to pay claims and fulfill other obligations."

Canadians are also being warned about the warranty scam: "At least one auto maker, Ford of Canada, has sent a memo warning its dealers to caution customers about a U.S. company called Canadian Auto Warranty Services, not affiliated with Ford, which calls or sends postcards to customers about expiring warranties.

PhoneBusters, the Canadian anti-fraud call centre, has vehicle warranty coverage phone calls and postcards on its website under a list of new scams."

Consumer Reports does not recommend buying an extended warranty unless you plan on keeping a trouble-prone vehicle for an extended time after the original warranty runs out. Most manufacturer warranties are sufficient, with bumper-to-bumper coverage of at least three years or 36,000 miles and powertrain coverage that’s often longer. If you want an extended warranty, ones offered by the auto manufacturer are typically better than those offered by third-party companies.

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