In late April, the Wisconsin Better Business Bureau (BBB) warned consumers about US Fidelis, and other similar companies, that sell extended auto service contracts via deceptive postcards and “robo” phone calls that scare people into thinking that their auto warranties are about to expire. Almost 4,000 consumers nationwide have filed complaints with the BBB against these companies, and more than 140,000 people have contacted the BBB to inquire about them.
Today, Sen. Charles Schumer (NY) and Sen. Mark Warner (VA) called on the Federal Trade Commission to crackdown on these calls. The FTC announced that lawsuits would be filed shortly.
The BBB’s position: Because major auto manufacturers such as Chrysler and GM are either contending with bankruptcy or fighting off the threat of bankruptcy, there is currently a lot of confusion surrounding the status of auto warranties. The BBB is concerned that consumers are particularly susceptible right now to deceptive telemarketing phone calls and other solicitations that seem to be coming from their manufacturer regarding the status of their warranty.
The BBB wants to reiterate its tips for consumers when it comes to receiving these solicitations:
* Make sure your home and cell phone numbers are on the Federal Do Not Call list: http://www.donotcall.gov
* By FCC (Federal Communications Commission) regulation, the use of auto-dialers and recorded messages to cell phones is illegal and cell phone users should file complaints if they receive such calls—even if their cell number is not on the Do Not Call List.
* File a complaint with your state Attorney General, your BBB at http://www.bbb.org and the FTC at http://www.donotcall.gov.
* Not all companies selling extended service contracts are misleading consumers or violating Do Not Call lists; before buying an extended service contract for your car, check the company’s reliability report for free at http://www.bbb.org.
