In my experience, extended warranties are rarely worth the money (with some exceptions of course, I personally always like extended warranties on computer or other tech purchases) . But there’s a car-related scam currently making the rounds that really stretches credulity.
The pitch uses a recorded phone call to remind you that your car warranty is set to expire, offering to help you out with an extended warranty. I’d say I’ve been getting at least two or three of these calls a week, some weeks its daily (funniest part here is, I don't even own a car LOL) .
Here’s the pitch: "Your factory warranty is about to expire ... You are still eligible to reactivate warranty coverage ... This is the final call before we close the file. Press 1 to speak to a representative about your vehicle, press 2 to be taken off the follow-up list."
Most of the calls originate out of St. Louis, but police suspect that the numbers are being spoofed to mask their origin. The calls originally started showing up out west but have now made their way into Ontario.
Going under monikers like Canadian Auto Warranty Services and World Wide Warranties, the scammers offer you the chance (even though they have no idea what kind of car you actually own) to purchase a five-year extended warranty for $175 – by credit card, of course.
The whole thing is nothing more than a phishing expedition designed to get that card data. If somebody does bite, they run the risk of dealing with a company that no longer exists. The few who do get something in return quickly find that the warranty isn't honoured by most mechanics.
Steer clear, warns the RCMP's Louis Robertson, who also works for Phonebusters - the centralized police agency that handles telemarketing fraud across the country. Call your dealership to check on your existing warranty, he says, and see if they can suggest any reputable companies that provide extended warranties.
Wednesday, March 4, 2009
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