With the cost of new cars going up, up, up, more of us are keeping our vehicles for extended periods of time, even after the factory warranty has expired. A vehicle protection plan is a supplemental plan to the manufacturer’s warranty that protects consumers from costly repair bills. There are many companies that prey on unsuspecting consumers by selling fraudulent extended vehicle protection services. Here are ways to protect yourself from vehicle protection fraud.
Be Careful of Robo Calls
In recent years, more than $4 million was refunded to nearly 6,000 people from the Federal Trade Commission after they were tricked by robocalls peddling extended vehicle service contracts and portraying themselves as being affiliated with the vehicle’s manufacturer or the dealership of where the car was purchased. When individuals purchased the service over the phone, their refund submissions were ignored when their vehicles needed to be repaired. Robocallers may already have information about your vehicle or warranty which may lead you to assume they are credible.
Do Not Purchase Just because You Feel Pressured
There are many situations where consumers felt pressured into purchasing the extended vehicle service protection from vendors who called them. The consumers usually did not conduct any research and a large part of it was because of high-pressure sales tactics by the telemarketers. You should be skeptical of any telemarketer who tries to pressure you to make an instant decision.
Do Not Fall for Scare Tactics that You Receive in the Mail
Mailed documents that look genuine may be hard to distinguish. Often, marketers will portray their advertisements as frantic manufacturers or warnings from the DMV. You may see titles such as expiring auto warranty or final notice. This is designed to facilitate action on your part to call the number for more information.
Request an Exclusionary Policy
Exclusionary policies provide a list of what is not covered if something breaks in or on your vehicle. With inclusionary policies, you only receive a list of items that the policy covers.
Don't Give Personal Information over the Phone
If the caller is asking for your credit card number, social security number, or any other personal information, they must send you more detailed information about what they are trying to sell you.
Utilize the BBB and FTC
If you receive a call from a telemarketer that is selling extended warranties, it’s best to conduct a brief search on the Better Business Bureau website to get insight into their reputation. If you were subjected to purchasing a fraudulent extended warranty, then you have the option to file a report with the Federal Trade Commission.
If you would like more information on vehicle warranties, give the experts at Freedom Warranty a call.