A new warning to anyone considering buying an extended car warranty. Already, people have lost millions.
Eloise Bangert received a call from a telemarketer. The pitch was an extended car warranty.
"I said well I couldn't afford to buy that … and he said "oh well what is going to happen when something happens to the car, who is going to pay for that," and on and on…"
Eloise gave the man her credit card information for a $200 down payment.
"That's where I made the mistake."
She is not alone.
Thousands of consumers are bombarded by robo-calls, or mailings, about car warranties every year. Most of them, authorities say, are completely deceptive.
U.S. Postal Inspector Dan Taylor says, "Customers or victims thought they were buying an extension of their manufacturer's warranty and reality they were just service contracts."
What's the difference?
A service contract covers just some repairs, versus a warranty underwritten by a car manufacturer.
Taylor says, "The victims did receive a small amount of coverage, but it was nowhere near what they
were expecting based on the phone call."
And if consumers try to call for a refund? Bangert says, "It was frustrating. Every time you try to call, they would never answer to pick up."
Postal Inspectors say anytime you're dealing with a telemarketer be careful. Ask for details on the refund policy. Get it in writing before any payments are made.
If you're looking for an extended auto warranty, call your car manufacturer. Don't buy additives or a warranty over the phone.