VSA BULLETIN
December 17, 2008
Issue #20 - 2008

ATTENTION: Dealers, Salespeople, Business Office staff
Beware of new extended warranty scam!

(SURREY, B.C. - 17 December, 2008) - British Columbia's Registrar of Motor Dealers, Ken Smith, has joined other Canadian regulators with a warning to the public about an apparent new fraud involving the sale of extended warranties.

"I want to first emphasize that this does not concern any of the warranty products sold by reputable licensed dealers, yet another reason to deal only with licensed professionals," Smith said. "In fact, this was brought to the attention of the authorities by responsible members of the industry."

This new scam is a phone solicitation from a U.S. firm representing itself as "Warranty Center," or "World Wide Warranties Inc." and also doing business under a number of other names.  The sales pitch begins by advising a consumer that their vehicle warranty will expire in two days. The caller then claims the customer information was provided by the vehicle manufacturer. Consumers are then offered the chance to purchase a five-year extended warranty for $175 and a credit card number is requested.

A Saskatchewan industry report stated that the sales effort is ". . . to the point of being very rude and harassing (consumers) for a credit card number. The telephone prefixes that have been appearing on customers’ phones are 732, 203, and 603."

Added B.C.'s Smith, "people must always be careful about giving out credit card numbers to unknown parties and, with respect to extended warranties, check your documentation. Discuss it with your dealer."

See also the release from British Columbia's Financial Institutions Commission.

www.vehiclesalesauthority.com

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