There’s Another Automotive Extended Warranty Scam Happening
If it wasn't already bad enough constantly being solicited for extended car warranties, now there is a scam that's getting people. I talk with Chris Kari, owner of Kari Toyota each week, and he was the one to tell me about how the scam has been getting people.
It works out like this: A consumer will get a phone call from someone claiming to be from a dealership. Perhaps they could even claim to be from the dealership you purchased your car from. They already know what kind of car you drive, as it listed on public record. They offer you an extended warranty for your vehicle, and say that if you change your mind you can call the dealership and cancel and get your money back. They make it seem like it's a harmless, no obligation purchase. They'll even give you the dealerships actual phone number.
Unfortunately, people who try to then call the dealership and cancel their warranty are told there is no record of it. That's because the scammer wasn't from the dealership, and they just ran off with your money.
How can you protect yourself? The FCC warns consumers to not give out any personal information over the phone such as driver's license, social security number, or credit card information unless you are sure that it is your business. If they claim to be calling you from your dealership and you aren't 100% sure, you can hang up and call the dealership directly and ask. You can find out more on these scams and how to protect you from the FCC.