ROCKFORD, Ill. (WIFR) – With car manufacturers cutting back production and vehicle prices rising, people are having second thoughts about buying new cars. While legitimate car warranty companies provide valuable services in keeping maintenance costs manageable, these conditions have created a market for auto warranty scammers.
Motorists are receiving calls from scammers posing as representatives of a car dealer, manufacturer or insurer claiming that an auto warranty or insurance policy is about to expire. The calls include a recorded voice claiming to represent an automaker or dealer and warning that the coverage you got when you bought the vehicle is about to expire.
The call isn’t really from your vehicle’s manufacturer or the dealership where the vehicle was purchased, and the “extended warranty” being offered is really a service contract that could cost thousands of dollars and provides limited coverage. Horton says that restrictions are often buried in the fine print.
“Car warranty scammers try to take advantage of vehicle owners’ fears that, someday, they’ll have to pay a lot of money to replace a broken or worn-out part,” says Dennis Horton, director of the Rockford Regional Office of the Better Business Bureau.
According to the call-blocking service RoboKiller at the end of 2021 crooks could have placed nearly 13 billion scam auto warranty calls, more than triple the 2020 total.
“Complaints filed with the BBB often allege vehicle repairs they…
