Think twice before you dial the number on those official-looking postcards or letters warning that your car's warranty is about to expire and urges you to call a toll-free number to ensure you're covered.
Those mailers are advertisements aimed at pressuring you into buying an expensive service contract, the Washington state attorney general's office says. State agencies throughout the country have noticed an increase in consumer complaints about out-of-state companies offering extended warranties through the postcards.
The businesses design their mailers to look like official notices from your vehicle manufacturer with phrases like "Final Warranty Notice." Many of the mailers are personalized with your name and customer identification number.
Washington's assistant attorney general warns, "If you receive a postcard warning you to renew your vehicle warranty, don't take the information on face value. Your car or truck's initial warranty may be far from expiring or may have expired long ago. These notices usually aren't from your manufacturer or dealer; they're ads from businesses that want to sell you an optional, pricey plan to cover future repairs."
Before purchasing an extended warranty, which is often called a service contract, shop around and know exactly what you're buying.
Companies that provide service contracts sometimes go out of business and are unable to repay claims. Check the business' complaint history online and ask your mechanic if they have dealt with the company before. Be sure your contract includes the company's address and phone number in case you need to contact someone.