Lorenz Honda

Avoid Car Warranty Scams

Many people have reported receiving postcards or robocalls alerting them their car warranties are about to expire or have already expired with a toll-free number they can call for information. The postcards usually carry in bold letters a heading such as  "Honda Notification," and the message that "your warranty is about to expire," leading some recipients to believe the sender is somehow linked to the dealer that sold them the vehicle or to the manufacturer that made it.

The directions state that if your warranty is about to expire or has expired, you should call the toll-free phone number on the card for more information on extending or renewing your vehicle's warranty. If you've considered taking them up on the offer think again. Many of these warranty offers are nothing but scams.

The pre-recorded messages, also known as "robocalls" or "voice blasting," have worried thousands of people who pay thousands of dollars each to make sure their vehicle's extended warranty coverage remains current. But thousands of others who had placed their phone numbers onto a federal Do Not Call list are angry because they can't get the companies to stop calling them.

If you have received any of these calls or notices please be assured that Lorenz Honda and any of its entities have not sold, rented or in any other way given out your information to anybody. Most of these companies may have gained the information from state records using the freedom of information act or by purchasing mailing list and just sending a generic letter out.

The companies using these deceptive and sleazy sales tactics must be stopped and brought to justice. They are making a mockery of the Do Not Call Registry and the government?s rules regarding telemarketing sales.

If you are the recipient of one of these sales calls, file a complaint with the Federal Trade Commission.  The government has the power to sue these companies, fine them, and make them stop any misleading sales practices.

• Beware of any mailings that appear to come from your automobile manufacturer offering extended warranty coverage.
• Never give out personal financial information such as bank account numbers or Social Security Numbers over the phone.
• When considering an extended warranty, or any other telephone or mail solicitation, always insist on getting the complete terms and conditions of your agreement in the form of a written contract before you agree to sign up, pay any money or provide your credit card information.
• Never give out personal financial information such as bank account numbers, credit card numbers of Social Security Numbers over the phone, unless you are absolutely positive that you know the party with whom you are dealing.
• The Federal Trade Commission says consumers, before signing any extended coverage contract, should fully understand its terms and coverage. The agency also stresses that what consumers are actually buying is not an extended warranty but a "service contract." "A service contract is a promise to perform, or pay for, certain repairs or services. Although a service contract is sometimes called an extended warranty,' under federal law, it is not a warranty," the FTC said. "A warranty comes with the original price of the car, whereas a service contract costs extra. It is mainly this separate and additional cost that distinguishes a service contract from a warranty."
• There are many things to consider when you're offered an "extended warranty" or service contract." Consumers should beware that certain "extended warranties" do not always provide the peace of mind and financial protection that consumers expected. Many of these contracts, when closely scrutinized, exclude so many items that they really provide very little coverage for outrageous prices.
• Check out a business with your state Attorney General's Office and your local Better Business Bureau before you agree to do business with them.