Extended Warranty Scam Targets Car Buyers

MSNBC reports on an "obnoxious and deceptive marketing campaign" that "uses postcards, letters, and phone calls to sell outrageously priced" extended vehicle warranties.  "The mailings look like an important notice from your car dealer or automaker. There is always an eye-catching warning on the front of the card, such as: ‘Final Notice: Expiring Auto Warranty.'"  Some people have also received phone calls, at home and on cell phones, warning them that their car's warranty is about to expire unless they pay to renew it.  Consumers who bother to return the call are quoted extraordinary prices in return for "renewing" warranties they never purchased in the first place.  A MSNBC reporter who asked to see the policy was told, "We don't actually send out any paperwork without receiving a down payment."  Consumers who receive such deceptive calls or mailings may choose to "file a complaint with the Federal Trade Commission," which "has the power to sue these companies, fine them, and make them stop any misleading sales practices."

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