The Update

Don’t Get Caught in an Extended Warranty Scam

You’ve got an unexpected phone call from a helpful representative wanting to sell you a fabulous product, and you didn’t even know you’ve been missing it: an extended warranty on your car. Don’t sign up for anything just yet! You may be the target of an extended warranty scam.

Here’s what you need to know about extended warranty scams and how to avoid them.

How Do These Scams Play Out? 

Extended warranty scams play out like this:

First, you get an unsolicited offer. This can be by phone, email or a letter from a company claiming to provide extended warranties for your vehicle after your current warranty expires (whether you have one or not). Next, the scammer seeks to create a sense of urgency by claiming this is a limited-time offer, so you have to act now or risk costly out-of-pocket repairs. Once you show even the slightest bit of interest, the scammer provides vague or misleading info about the coverage. Then, after convincing you to sign up, the scammer asks for your credit card information to charge an upfront fee and set up recurring monthly payments. When the dust clears, you’ll be left with fake or useless coverage.

Red Flags of Extended Warranty Scams

Look out for these signs of an extended warranty scam to protect yourself from falling victim:

• Unsolicited contact. Be cautious whenever you get an unsolicited offer for an extended warranty.
• High-pressure sales tactics. If you’re pressured to make a quick decision, you’re likely looking at a scam.
• Lack of details. If the contact can’t provide you with clear details about the alleged coverage, it’s likely a scam.
• Request for immediate payment. Any company demanding upfront payment has a very good chance of being a scam.
• You can’t find any information on the “company”. If there’s no physical address or legit online presence for the alleged company, it’s likely a scam.

Protect Yourself from Extended Warranty Scams

Protecting yourself from extended warranty scams requires vigilance and skepticism. Here are some tips to help you stay safe.

First, before agreeing to any warranty, research the company that’s offering it. Look for reviews to see if the company is registered with your state’s consumer protection agency. A lack of information or negative reviews should be a major red flag.

Next, if you’re unsure whether your current auto warranty is about to expire or if you need an extended warranty, contact your car dealership directly. They can provide accurate information and offer legitimate options, if needed.[Here at [credit union], we have trusted partnerships with extended warranty providers for [mechanical breakdowns, cap protections and more]. Reach out and let us safely guide you through considering these options].

If you are considering an extended warranty on your car, be sure to read the contract carefully. Pay close attention to what is and isn’t covered and don’t sign any contracts until you fully understand the terms.

Finally, never share personal information with unverified contacts.

Extended warranty scams can prey on unsuspecting car owners and trap them in high-cost but useless plans. Use this guide to stay safe!

RGCU Offers Extended Warranty Through Debit Benefits

If you are interested in protecting your bigger purchases, you can double the manufacturer's warranty on any item you purchase with your RGCU Debit Card up to one year. This is a safe an easy way for extended warranties on your items.