Don’t Fall For the Car Warranty Scam
Today an increased number of consumers fall victims of the car warranty scam. It occurs when an unknown person contacts the car owner. This person ‘’kindly’’ informs you that your vehicle warranty is about to expire. Furthermore, they urge you not to waste time and purchase the extended car warranty for your vehicle. This is a widespread fraud that scammers use to plague consumers. Although certain efforts are made by the government, the car warranty scam continues to be a serious problem. This article aims to help you avoid falling for the car warranty scam.
Typical scenario of the car warranty scam
Let’s refer to one of the typical scenarios of the car warranty scam. Thus, you receive a telephone call from an unknown person and here ‘’the game’’ begins. The caller uses high-pressure tactics to make an emotional impact on the potential victim. They make you believe that you need to purchase the extended warranty very quickly, as your warranty will expire today. Most probably, the scammer will use these phrases in their speech: “motor vehicle notification” or “final warranty notice of interruption.” Why do they mention these words? Here is the answer. Such words are perfect at creating the atmosphere of urgency and serve as excellent tools for cheating consumers.
In addition to that, the scammer may persuade you to provide an essential piece of your financial information. For instance, they may pressure you to give your bank account number. In most cases, victims are also asked to make a down payment prior to having details regarding the service contract. Sadly, many victims of the car scam state that after giving unknown people their financial data, they just disappeared. As a result, consumers appear in depressed situations and lose their hard earned money.
What should you do for avoiding the car warranty scam?
If you want to avoid becoming the victim of the car warranty scam, consider following these tips.
- Did you get a call or receive a letter, which informs you about the expiration of your car warranty. The first thing that you should do is checking with the auto manufacturer.
- Never call the telephone number that you may get from the scammer. Scammers are ‘’professional artists’’ when it comes to cheating consumers. That’s why victims never even have the idea that they are dealing with a scammer.
- You should be cautious about fast talkers. These people are in the habit of using forceful tactics to influence a car owner’s decision-making process. These tactics show a great effectiveness in pressuring consumers into making a purchase on the spot. Typically, the majority of legitimate and reputable businesses are always ready to provide the necessary information in writing.
- A useful tip is not giving your personal financial information to scammers. Later this data may be used against you.
- Don’t forget about exploring term and conditions of the contract prior to signing it. In case the caller makes you decide on the stop, simply refuse to use their services.
- Did you make up your mind to buy a service contract? At this point, the best option is opting for the one that the automaker offers. Third-party warranties may be dangerous. Sometimes certain essential points, including normal wear and tear are excluded from the contract.
- Consider contacting your car dealer and asking them to inform you about your warranty’s expiration terms.
In conclusion, consider taking precautions to avoid such frustrating situations. However, if you believe that you have become the victim of the car warranty scam, you may file a report with the Federal Trade Commission (FTC).