Scam Alert: This 'warranty' will not pay off
09/21/2008 3:58 AM
09/21/2008 4:00 AM
THE SCAM: Car warranty
HOW IT WORKS: For most consumers, having a warranty on a vehicle is peace of mind that's tough to overvalue. But offers made in a postcard or phone call can drive the cost way up, with no benefit to consumers. The postcard or caller says your car's warranty is about to expire. Those contacted by post card are encouraged to call a toll-free number to renew it. Callers are pressured to buy an expensive warranty and must make a payment before receiving any paperwork. Experts said such warranties aren't worth what you pay for them, and don't come from your vehicle's manufacturer.
WHAT'S AT STAKE: Your money
HOW TO BEAT IT: As with any service you're offered that you didn't know you needed, be cautious. If you have a warranty, check to see when it expires, what the terms are and what it would cost to renew it. Finally, don't agree to buy anything until you've checked out all the details thoroughly.
For a look at past scams, go to www.modbee.com/business/scam.
Editor's Choice Videos
Join the Discussion
The Modesto Bee is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.