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Scammers preying upon auto ownersApr 19, 2009 (The Columbus Dispatch - McClatchy-Tribune Information Services via COMTEX) -- The recession and worries about the auto industry's health have combined to create a profitable environment for people peddling questionable car warranties, some of them through automated phone calls. So says the Better Business Bureau of Central Ohio. Consumer complaints against such auto-warranty offers are up 40 percent from this time last year, spokeswoman Joan Coughlin said. The volume of calls and contacts sent 140,000 consumers nationwide to the BBB last year to confirm the legitimacy of companies claiming to sell auto warranties, she said. "Consumers are getting bombarded with these offers through telemarketing and direct mail," Coughlin said, including automated calls and text messages to consumers' cell phones. Scammers are "trying to scare them into thinking their auto warranty is about to expire and if they don't sign up now, the offer expires," she said. "Not only are these telemarketers lying about the consumer's coverage, they are potentially ignoring federal laws such as the Do Not Call registry." This scam has been around for a while but has picked up steam recently as auto-industry woes have grown, Coughlin said. "They play on consumers' fears and the headlines with the recession and the problems in the auto industry," she said. She notes that many consumers fear that their dealership will close and desire to have some kind of extra warranty to ensure their car is covered. The Ohio attorney general's office has logged eight consumer complaints, spokeswoman Kim Kowalski said. Because complaints are lodged against individual companies and not by industry, the office was unable to say whether such complaints are on the rise. "Preying on people that are financially vulnerable in a financially vulnerable time is a shame," she said. Dave Starner said he filed a complaint with Attorney General Richard Cordray against Vehicle Services Inc., after the company continually called his business phone, his cell phone and his 12-year-old's cell phone, even after the North Side resident requested several times that the calls stop. "As a consumer, it becomes more than annoying," Starner said. "I want them to stop calling. It's become ridiculous. It's a 100 percent scam." Calls to Vehicle Services Inc., based in St. Peters, Mo., were not returned. Coughlin advises consumers to check the company offering an extended warranty through the BBB before agreeing to any offers. Consumers also need to consider whether they need a warranty, what the warranty covers and what the warranty will cost in the long run, she said. Consumers have complained to the BBB saying warranty contracts contain clauses that say pre-existing conditions are not covered, that they require proof of maintenance for repair coverage, that they require that certain repair facilities be used, and that that repair charges must be approved before the work is done, Coughlin said. Others report difficulty in obtaining refunds. "These kinds of conditions make many of these contracts virtually worthless," she said. "And people are falling for it." [email protected] To see more of The Columbus Dispatch, or to subscribe to the newspaper, go to http://www.columbusdispatch.com. Copyright (c) 2009, The Columbus Dispatch, Ohio Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |