CONSUMER ALERT: Car Warranty Scams Aim to Steal Cash
March 29, 2017
LITTLE ROCK – Arkansans are reporting unscrupulous sales people who aim to scare them into purchasing unnecessary third-party car warranties to the Arkansas Attorney General’s office. The sales pitches are usually over the phone with scammers posing as a representative of a car dealer, manufacturer or insurer and telling consumers that their car warranty is about to expire. The scammers hope to obtain personal or financial information about the consumer can be convincing.
“Scammers use high pressure tactics to trick consumers into turning over private information in hopes of remaining under the safety net of a car warranty,” said Attorney General Leslie Rutledge. “My office has recently seen an uptick of consumers receiving these robocalls. It can be difficult to discern if these types of calls are scams, but best practice is to never give personal information over the phone, especially if the phone call is unsolicited.”
Attorney General Rutledge released the following tips to help consumers spot this type of scam and avoid falling victim:
- Never give out personal or banking information in response to a phone, email or mail inquiry. Contact the entity requesting the information directly through a different method to verify that it is a reputable company with which you have an existing relationship.
- Wiring money is like giving cash away. If you wire money, there is no protection for you if you later learn that the recipient is not who they claimed to be.
- Investigate offers before paying any money.
- Review bank statements and credit card statements regularly. Monitor financial account statements for any unusual activity and promptly report any unauthorized charges to the account provider.
If the scammers’ sales pitch has you concerned that you may require an extended warranty, first check your manufacturer’s warranty to verify the coverage you already have and if you choose to purchase an extended warranty, review the exclusions before purchasing. Many extended warranties are very expensive and the coverage will be much more limited than the coverage included in the manufacturer’s warranty. Research different companies to determine if the product is needed and right for you.
For more information and tips to avoid scams and other consumer-related issues, contact the Arkansas Attorney General’s office at (800) 482-8982 or email@example.com or visit ArkansasAG.gov or facebook.com/AGLeslieRutledge.