Saturday, September 06, 2008

Car warranty scam

Yesterday I received yet another automobile warranty scam postcard:

FINAL WARRANTY NOTICE
Call 1-888-963-6723
This is to inform you that this is your FINAL NOTICE to extend the warranty coverage on your vehicle. Call us immediately with your exact miles and VIN# to take advantage of this final offer. You have been pre-selected for this exclusive program.
 
Additional 20% discount off the already low price if you call within 48 hrs and use promotion code PC-327
 
Be advised your 20% discount expires in 48 ours so Call 1-888-963-6723 now.

The return address on the other side of the card is:

Dealers Warranty
745 Friedens Rd., Ste. 201
St. Charles MO 63303

Several points flag this as a scam:

  • There is no information identifying my vehicle. The manufacturer that issued your warranty already has your VIN, yet the postcard wants you to supply it. (Some extended-warranty scammers do get this information, which is on public record, so its presence is no guarantee of legitimacy.)
  • Nothing in the card mentions the manufacturer of my car. The sender in fact has no affiliation with the issuer of the warranty, and no power to extend it.
  • Any piece of mail which claims that an offer expires in "x hours" or "y" days" is trying to rush you into a hasty response. The sender has no way to start a timer when you pick up your mail.
  • The return address is in St. Charles, which is right next to St. Louis. The large majority of extended-warranty scams are based in St. Louis or its immediate vicinity.

Here's a little more information on the scammer. Dealers Warranty has reportedly been making auto-dialer hangup calls to cell phones, which is illegal several times over.

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