Truth behind those car warranty calls

FORT WAYNE, Ind. (WANE) - “Your vehicle warranty is about to expire” is the beginning of an automated telephone call that’s sweeping the country and includes residents in northeast Indiana and northwest Ohio. The call is reaching people on the Do-Not-Call List, cell phones, and even unlisted numbers.

So is it a scam, or just part of an aggressive campaign? NewsChannel 15 dug deeper to get answers, after personally experiencing the phone call. Within just a few minutes of receiving the call, we spoke to three different people, received four different prices, and found out it is raising more questions than answers across the country.

“We know that your automobile is a major investment,” say the hold music that greets you if you press option 1 to speak to someone after receiving the automated call.

The call can sound legitimate and can create a fear of paying thousands for repairs down the road if you let your car warranty run out.

“You could look at $3,000 for a new transmission on top of labor and diagnostics,” a female representative told NewsChannel 15’s Matt McCutcheon.

After throwing out those expensive claims, they're hoping you'll take the bait. So after receiving the call, we decided to find out what it's all about. Despite somehow “knowing” the warranty will expire, the representatives appeared to be clueless as to the name of who they had called, let alone the make and model of the vehicle they said was “about to expire”.

When asked for the mailing address for payments, a male representative took a long pause and said he wasn’t sure, and even the payment amount was inconsistent.

“I could go ahead and get it to you for $295 down and then $200 for 15 months,” said a female representative.

"It looks like we got you set up with a down payment of $233 and 18 months of $170,” said a male representative after being transferred from the female.

“I could go ahead and drop your down payment to $233 and your monthly payment to $147,” the female representative said later.

All of the back-and-forth is shady, local representatives at the Better Business Bureau say.

“That's a huge red flag! The high-pressure and trying to get you to buy something at all costs and make your decision right now, all of those are big red flags,” said Mike Coil.

Mike Coil of the Better Business Bureau doesn't call it a scam, but does call it deceptive.

“They're calling people on the Do-Not-Call List and that's going to get them in trouble and second, they're using deceptive sales telling people it's a dealer or manufacturer warranty when in fact it is not,” Coil said.

That could be one reason why the company has ruffled the feathers of 40 Attorneys General across the country and the nationwide Better Business Bureau.

“They have an F rating because of the number of complaints which stands at 1,100 nationwide,” Coil said.

The Better Business Bureau says the company's name usually is "US Fidelis" but NewsChannel 15 received three different company names when we asked the representatives. If your car warranty is about to expire, the BBB says to call your dealer or manufacturer for advice.

If you purchased insurance and want to be certain it’s legitimate, contact the Indiana Attorney General at (317) 232-6201 or in Ohio (614) 466-4320.

A spokesperson for U. S. Fidelis contacted NewsChannel 15 on Tuesday and said that the company has not engaged in telemarketing calls since July of 2008. An official statement from the company can be found by clicking here.

Also on Tuesday, Indiana Attorney General Greg Zoeller announced he's filing a lawsuit against two companies for violating Indiana’s Do-Not-Call-List.

The calls, which have been harassing people across the area for weeks, are unsolicited and offer extended car warranties.

The suit claims that Nevada based “Fortress Secured” and California based “SVM Inc.” violated the states telephone privacy laws.

The companies are also accused of doing business in Indiana without the required registration. Since March 2002, the attorney general's office has collected more than $1 million in fines from telephone privacy lawsuits.