What are the car warranty scams?
Although the government is trying to protect people from scams, these fraudulent car warranty scammers are still stealing hard-earned money from innocent people. If you are getting calls or emails regarding the expiration of your car’s warranty, and are offered new deals, then be cautious.
In 2011, the Federal Trade Commission reimbursed around $3.2 million to around 4000 people, who became the catch of these car warranty scammers. Not just it, but a similar amount of nearly $4 million was returned to around 6000 people in 2019 as well, by FTC.
Over the years, advancement in technology and easily available online data has given rise to car warranty scams. These telemarketing scammers disguise themselves as manufacturers and tricks people into buying a scammed warranty through rigorous marketing tactics. Usually, these scammers use robocalls or emails to create urgency for selling their car warranty scams.
When you get a call by a scammer, the person on the call pretends to be a legitimate representative. First, they will tell you that your warranty is about to expire soon, and then very cunningly they will trick you and will put forward their fraud deal. When you listen to the offer, it would sound so good that you wouldn’t be able to refuse it. However, if anything happens like this, be vigilant. If the offer seems too good to be true, then it certainly is.
Authentic car warranties VS Car warranty scams
Before you get further, it is essential to know the difference between the two. A car warranty can be extended when it is about to expire. But for this, you will have to make a call to the manufacturer and get it done. They won’t call you for an extension. If any third-party company calls you and tells you that they have a perfect and affordable deal for you, then know it is just a catch. Getting your car warranty extended is not cheap. It costs you a lot. If you are getting an inexpensive option, then it is trickery by car warranty scammers to defraud you.
Ways of car warranty scammers to trick you
Robotic phone calls
In this highly technological world, it is not difficult for an AI to extract your information. If you get a call from an unfamiliar extension, then know it is not a call to answer. FTC has warned people repeatedly that the robotic prerecorded voice would sound legitimate by telling your personal information to you over the phone conversation. Moreover, it will associate itself with the manufacturer or the dealer from where you have purchased your car.
Pressurizing you till you give up
One of the most convincing tactics that these car warranty scammers are best at, is pressurizing. These fraudsters first put forward their deal in front of you. Then they give you a short deadline because of which you are unable to do your research thoroughly, and you end up giving up. Moreover, they won’t stop here. If you try to resist them on the call, they then try another tactic that is threatening. You get a call, and the person on the other side tells you that if you refuse to take the deal, they will cancel your car warranty as soon as you put the call off. You get worried about it and end up taking an impulsive action. They take advantage of this weakness and scam you. So, if someone is talking way too fast and is giving you threats, then be aware and be cautious.
Documentation after down payment
When you are called by a telemarketing call center representative and listen to their offer, you get tempted to hear more from them. Once they read their sales script to you, many wise individuals ask them for written documentation of terms and conditions before they sign in. To this request, they reply very conveniently that if you wish to receive further information, then you will have to pay the initial down payment. And here is the trick. By asking you for payment, they receive all your personal information and credit card credentials. Once you give them what they needed, they will never call you back, nor will you be able to call them because you received the call from an unknown extension.
One of the best ways to show yourself as a legitimate business is through email marketing. These fraud telemarketers are trained very well to write authentic-looking emails. If you get a fearful email with a subject line similar to, “Your Car Warranty is Ending!” in bold and capital letters, know where it is leading. These emails seem real and authentic as if a manufacturer is sending it to you. At the end of the mail, they also provide their number and encourage you to make a call on it for further details.
Pretending to be legitimate manufacturers
A telemarketing call is easily detectable as the incoming call on your screen would be either from number 1-800 or the name of a particular marketing company would appear. However, car warranty scammers pretend to be someone else. With the help of advanced technology, they make their names appear different on the caller id or email address. They make it so believable that you won’t be able to differentiate between the reel and real ones. Instead, they are third-party sales representatives.
How to avoid car warranty frauds?
If you want to extend your expiring warranty for your relief, then you should get it from the manufacturers directly. Go on the official website of the manufacturers and apply for it yourself. If you need more details, then you will find their official number on the site, contact it, and ask your questions.
Never trust any call or an email claiming to give you a car warranty deal at below the market value. Instead, check its authenticity from the Better Business Bureau(BBB) website. Furthermore, directly report to the Federal Trade Commission or BBB if you suspect that you have become a target of car warranty scams or are at a potential threat. Put forward your request with one of these organizations to reclaim your money and blacklist that fraud company.
Nonetheless, Never take any action until you receive complete information. It is advisable to avoid incoming calls from unknown numbers but even if you pick it up, never give up on their marketing tactic. If they tell you that your car’s warranty is about to expire, then counter them with questions that you think they cannot answer. Inquire them with the details that you gave to your car manufacturer when you were buying your car. Once you suspect their sketchy behavior, never hesitate to cut the call. Also, never give out your private information over these strange calls. No matter what it is, you must never give your bank account number or credit card credentials to anyone. Regardless of whatever threats you get from the scammer, never-give-up. Do your research thoroughly. If they tell you that they will cancel your warranty if you refuse to take their deal right away, ask them to do it. Every company gives you an ample amount of time frame to make your decision.
If you want to extend your car warranty, then contact the manufacturer directly. But, if you choose to go with a third-party warranty, then make sure that you have done your research well. Never sign for anything before reading the fine prints carefully.
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