Beware of auto warranty scam

News Release
Better Business Bureau

Winnipeg, Manitoba– January 6, 2008. - Better Business Bureau is warning consumers to be wary of an American extended warranty corporation who is contacting consumers locally with an offer to purchase an extended warranty for their vehicle.
Consumers are contacted and told the company is connected to their auto dealer or manufacturer, and they are contacting people to provide them an opportunity to extend their warranty. Consumers are then offered a $1,900 to $2500 extended warranty package for their vehicle.
The “connected to your dealer or auto manufacturer” claim is absolutely misleading - This company has NO connection to the auto dealers or the auto manufacturers. Also the people contacted have older vehicles, generally 1989 to 1998 model years all well past the manufacturer’s warranty or any other available extended warranty package. If consumers decline they are often harassed with further calls or in some cased are verbally abused or threatened.
Using the information made available to us we have been able to locate following two companies, which may in fact be the same company.
1. National Dealers Warranty Inc. (also known as National Dealer Warranties, United Warranty Wholesalers)
2. Automotive Warranty Protection
Please note both of these companies are located in Missouri, in the case of National Dealers Warranty the Missouri Attorney General filed suit against the company for failing to inform consumers they were not affiliated with the dealer or manufacturer of the vehicle or that they were selling “extended service contracts” instead of warranties. The company which sells extended service contracts agreed to settle the lawsuit rather than proceeding to trial in the case. In reaching the settlement the company agreed to pay $4,955 in restitution to four customers and $25,000 to the Missouri Attorney General office. The settlement also requires the company to make fundamental changes in the way it conducts its business.
If contacted by the company the BBB recommends that consumers just hang up.
The BBB Serving Manitoba & N.W. Ontario, established in June of 1930, is a not-for-profit, public service organization and part of an international organization with 125 local Bureaus across Canada and the U.S. For over 75 years locally the BBB has championed trust and ethical business practices in Manitoba & now N.W. Ontario through rigorous evaluation of businesses against objective standards, unbiased reliability reports, impartial dispute resolution services and educational programs for businesses and consumers alike. The Better Business Bureau is unique because of its position of neutrality and its outstanding history of service. Visit the Better Business Bureau at www.bbb.org.