WASHINGTON, D.C. – It seems that there are no ends to the ways in which scammers will attempt to separate honest people from their cash, and reports say unscrupulous individuals are now using automated auto-dialing technology to target drivers and trick them into purchasing fraudulent warranty renewals for their vehicles.
The way the scam works is simple: a motorist will receive a robocall, with a pre-recorded voice informing them that their automotive warranty is up for renewal; often, to sweeten the deal and entice the unsuspecting victim, the robocaller will offer certain incentives for renewing their warranty, such as a purported $1,000 instant rebate, free maintenance and oil change package, or even a $200 discount on your renewal fee.
Most robocallers – many of which originate from overseas – will also up the ante and deliver a message that’s meant to intimidate the victim, such as telling them that this will be their “final opportunity” to renew their warranty, as it is set to expire within a very short frame of time; only by acting immediately – as in right now – can they avert disaster.
Many of these extended warranties can cost as much as $1,000 to $3,000; sometimes, consumers will instead be asked to pay a few hundred dollars up-front to “lock in” the deal.
An automobile – aside from a house – is typically the single-most expensive investment a person will ever make, and the idea of the day when the factor-dealership warranty ends can indeed cause anxiety for most people. Scammers are all too willing to use this against their victims, preying on those who dread the idea of potentially having to shell out thousands of dollars on expensive repairs in the future when they can just give the voice on the phone their credit card information to extend their coverage and assuage their fears.
The auto warranty robocaller renewal scam has been so prevalent in recent years that it’s been the top consumer complaint to the Federal Communications Commission for the last two years and running.
These con artists normally claim to be calling from the manufacturer of the car you’re driving, or the dealership that you purchased it from; they may even know the make, model, and year of the car you own, or they may simply issue a blanket statement without any specifics about your vehicle. Sometimes the offers are complete scams that leave the victims with nothing but empty wallets, whereas others will actually provide some degree of coverage, but not nearly to the degree that they first claim.
The biggest problem with this type of fraud is that the victims will often not even be aware that they’ve been ripped off until they actually have an issue with their vehicle, only then discovering that their “renewed” warranty actually covers little-to-nothing at all.
Consumers should be aware that robocalls offering to sell you services – such as renewing your auto warranty – are against the law unless the company behind the calls has your express permission beforehand; the only legal instances of robocallers being able to contact you without your prior agreement are charities and politicians.
The Federal Communications Commission’s enforcement bureau has been targeting companies behind the billions of scam auto warranty robocalls made in recent years. However, until the issue is under control, always exercise caution and common sense when contacted by an individual you don’t know on the phone – especially if it’s a pre-recorded robocall – and never give out your credit card or bank information to anyone you don’t personally know.
If you are a victim of an auto warranty renewal scam, be sure to report the company to the Better Business Bureau, the FCC, and your local Attorney General’s office. And if you are concerned about your warranty potentially expiring in the near future, it’s best to directly contact your dealer personally and inquire about it.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.