Extended Warranty Scam Calls: What Are They? (2024 Guide) (2024)

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Extended Warranty Scam Calls: What Are They? (2024 Guide) (1)

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What Is an Extended Car Warranty Scam Call?

According to the FCC, an auto warranty scam call is when someone posing as a representative of an automaker, car dealer or auto insurance company reaches out with a warning that your car’s extended warranty is about to expire. These calls typically include a pitch about ways to immediately renew or extend your vehicle warranty.

During these phone calls, you’re usually asked to input some personal information. You’re often prompted to press a button to stay on the line, at which point the caller or prerecorded menu will ask for various personal details. This information can then be used to defraud you.

Note that these calls are absolutely illegal. Rules from the Federal Trade Commission (FTC) dictate that companies must receive your express written permission before they can call to sell you something. A company must clearly state that it’s using robocalls and can’t make the calls conditional for providing a service. You can also revoke authorization for these calls at any time.

Who Is Responsible for Extended Warranty Scam Calls?

The FCC believes that a significant number of car warranty robocalls come from an operation headed by Roy Cox Jr. and Aaron Michael Jones through their Sumco Panama conglomerate. In 2020, the Cox/Jones operation purchased over 500,000 phone numbers from at least 229 area codes to make robocalls appear to have originated locally.

Ohio Attorney General Dave Yost filed a lawsuit against the Cox/Jones operation in July 2022 and the FCC has begun to investigate the group as well.

How Did Scammers Get My Information?

There are many ways for extended warranty call scammers to get your personal information. Data breaches hit near-record highs last year, according to a study by the Identity Theft Resource Center. Scammers use them to steal identity information and phone numbers.

Another common way for scammers to get ahold of personal details is through your state’s department of motor vehicles (DMV). DMVs across the U.S. sell off lists of personal data to third parties such as advertisers and private investigators. While the DMV won’t sell your picture, Social Security number or driver’s license number, it can legally hand over your name, phone number and current address.

How To Identify Extended Warranty Scam Calls

To protect yourself from scammers, learn how to quickly identify auto warranty robocalls. If the caller exhibits the behaviors outlined below, you may want to report the number to the FCC.

The Caller Has Few or Vague Details

The best car warranty companies have trained specialists who know the ins and outs of each extended coverage plan. If the caller presents vague details about your warranty or lacks specific information, chances are you’re dealing with a spam caller.

The Caller Says the Matter Is Urgent

Car warranty scammers will try to pressure you into making a decision by creating a tense or rushed state of mind. Reputable auto warranty providers know that rushing customers is not a good business practice and avoid doing so.

You’re Asked To Provide Personal Information

Scammers want information that allows them to steal your identity and gain access to your bank account. If a caller claiming to be from your extended car warranty provider asks for any of the following details, it’s extremely likely that they’re not legitimate:

  • Social Security number
  • Credit card information
  • Bank account number

You should immediately hang up from the extended warranty scam call and report the phone number to the FCC.

You Don’t Recognize the Phone Number

The FCC mandates that telemarketers display their phone number or company name when calling customers. Scammers, however, have gotten adept at what’s called “spoofing” — an illegal move that disguises the caller’s true number by displaying a different one on caller ID. Most companies have specific customer service numbers used to contact clients, so it’s wise to avoid answering calls from unknown sources.

If you receive a call from a phone number you don’t recognize, it’s likely that you’re dealing with a scammer. Companies don’t tend to hide their customer service numbers from caller ID.

Where Do Most Spam Calls Come From?

According to a report from Transaction Network Services, the area codes that generated the most robocalls in March 2023 were:

  • 209: Stockton, California
  • 480: Mesa, Arizona
  • 602: Phoenix, Arizona
  • 315: Syracuse, New York
  • 520: Tucson, Arizona
  • 803: Columbia, South Carolina
  • 470: Atlanta, Georgia
  • 252: Greenville, North Carolina
  • 239: Fort Myers, Florida
  • 910: Fayetteville, North Carolina

You Feel Threatened

Some extended warranty scam callers start turning to threats and intimidation when they need more information. If the caller threatens you in any way, immediately hang up and report the phone number to the FCC.

While a large number of Americans fall prey to vehicle service contract scams, it’s not the inevitable result of picking up the phone. Below are a few tips that can keep you safe from extended warranty scam calls:

Screen Your Phone Calls

This may seem obvious, but the best way to avoid car warranty robocalls is by letting them go to voicemail. If you don’t recognize a number, simply don’t answer it. If it’s important — say, if your actual extended warranty company is trying to get in touch — the caller might leave a message.

Add Your Number to the National Do Not Call Registry

Though it doesn’t necessarily block scam calls, signing up for the FTC’s Do Not Call Registry will significantly reduce the number of telemarketing calls you receive. By cutting down on the number of unwanted calls you receive, you may find it easier to flag scam calls.

Placing your phone number on the Do Not Call Registry won’t prevent legitimate companies from reaching out to you. However, fine print in the Telephone Consumer Protection Act (TCPA) makes it much tougher for telemarketers with unknown numbers to reach out.

Use a Robocall Blocking App

These days, most smartphones come outfitted with spam-blocking software. Those with iPhones and many Android devices can silence unknown callers by toggling a switch in the phone’s settings. There are many third-party apps that further block calls, adapting to scammers’ ever-changing methods.

File a Complaint With the FCC

If you receive an extended warranty scam call, it’s advisable to file a consumer complaint with the FCC. You won’t get a reward, but a larger number of complaints helps the FCC to build a stronger case against illegal operations.

What Is an Extended Auto Warranty?

When you buy a new car from the dealership, it usually comes with a limited factory warranty. This is a guarantee from the automaker that it will cover the cost of repairs and replacements after a mechanical breakdown. Factory coverage usually includes a three-year or 36,000-mile bumper-to-bumper warranty and a five-year or 60,000-mile powertrain warranty.

An extended warranty is a vehicle service contract that stretches your car’s protection term beyond that length. Many manufacturers offer their own extended warranty plans, though there’s also a thriving third-party market of reputable warranty service providers.

If you decide to purchase extended coverage from your car’s manufacturer, you’ll need to pick up protection before your factory warranty expires. Aftermarket extended warranties, on the other hand, can be purchased at nearly any point in time.

Extended Warranty Scam Calls: What Are They? (2024 Guide) (2)

To learn more about extended car warranties, read our complete car warranty guide.

Is an Extended Auto Warranty Worth It?

If you have an older, less reliable car and a low budget for car repairs, an extended warranty may be worth getting. It’s smart to assess your financial situation and the condition of your car before deciding whether or not to purchase extended warranty coverage.

Extended Warranty Scam Calls: Conclusion

While extended warranty scam calls are pretty common, there are multiple ways to recognize them and protect yourself. Most of these calls will come from numbers you haven’t seen before. They often feature automated menus and ask you to press a button to stay on the line before requesting personal information.

If you receive one of these calls, hang up and report the phone number to the FCC. Most cellphones have spam-blocking software preloaded, but you can find third-party apps that further block extended warranty scam calls.

Recommendations for Extended Car Warranties

If you’re looking for legitimate extended warranty coverage, we recommend starting your search by getting quotes from Carchex and CarShield. Both of these providers have strong industry reputations and receive relatively strong reviews from recent customers.

Carchex: Great Industry Reputation

Carchex has been a popular extended warranty provider for over 20 years. The company offers five tiers of coverage that range from bumper-to-bumper exclusionary coverage to a basic powertrain warranty. Because some Carchex plans protect vehicles for up to 250,000 miles, they’re great options for those looking for extended warranties for cars with over 100k miles.

Read more: Carchex reviews

Best Industry Reputation 9.1/10

Coverage for vehicles up to 250,000 miles and excellent customer service.

Learn More

CarShield: Affordable Monthly Payments

On July 31, 2024, the Federal Trade Commission announced that CarShield must pay $10 million to settle charges that its advertisements and telemarketing for vehicle service contracts are deceptive and misleading, and that many consumers found that repairs were not covered. The company said that its marketing efforts now include additional details about the elements of car repair typically covered and direct potential customers to its website, where full plans can be viewed before making a purchase decision. The MarketWatch Guides team is reviewing this information and will reevaluate all CarShield rankings.

When researching the market’s top warranty providers, we found CarShield to be the most popular. The company has one of the best used car warranties overall because many of its plans last for up to 300,000 miles. CarShield lets customers choose warranty plans with either set terms or month-to-month contracts, allowing for plenty of budget flexibility.

Read more: CarShield reviews

Best for Flexible Payments 8.9/10

A reputable extended warranty provider with industry-low rates.

Learn More

Extended Warranty Scam Calls: FAQ

Here are some of the most frequently asked questions about extended warranty scam calls.

Scammers contact you under the guise of letting you know that your extended warranty contract is about to expire. Once you’re on the phone, they offer a pitch for renewing your warranty, which they usually say requires personal information. The scammer can then steal your identity and potentially gain access to your bank account.

In most cases, you’re receiving scam robocalls that attempt to steal your personal information. You’ll be prompted to press a button to speak with someone who will try to make you divulge sensitive financial and personal details. If you receive one of these calls, it’s best to hang up immediately and report the number to the FCC.

You can add your name to the National Do Not Call list, but that generally only stops telemarketers from calling you. The best way to avoid extended warranty scam calls is by hanging up the phone immediately and blocking the phone number. It’s also advisable to screen your phone calls before answering them, especially if you’re getting car warranty calls from numbers you don’t recognize.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best extended car warranty companies. We collected data on dozens of auto warranty providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

  • Reputation: Our research team considers availability, ratings from industry experts and years in business when conferring this score.
  • Coverage: Companies that offer a variety of choices for warranty coverage, long contract terms and added benefits are more likely to meet consumer needs.
  • Cost: Auto warranty companies with affordable rates and multiple deductibles scored highest in this category.
  • Transparency: This score is based on contract transparency and the availability of a money-back guarantee.
  • Customer experience: Based on customer satisfaction ratings and our extensive shopper analysis, we consider the responsiveness, friendliness and helpfulness of each warranty company’s customer service team.

Our credentials:

  • 500+ hours researched
  • 50 companies reviewed
  • 2,000+ consumers surveyed

*Data accurate at time of publication.

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.

Extended Warranty Scam Calls: What Are They? (2024 Guide) (2024)

FAQs

Extended Warranty Scam Calls: What Are They? (2024 Guide)? ›

Scammers use automated technology to send recorded messages, which allows them to reach large numbers of people. These calls typically ask you to click on a button to speak to someone. If you receive a robocall about an extended warranty, it's best to hang up without engaging at all.

Why do I keep getting extended warranty calls? ›

Scammers use automated technology to send recorded messages, which allows them to reach large numbers of people. These calls typically ask you to click on a button to speak to someone. If you receive a robocall about an extended warranty, it's best to hang up without engaging at all.

Are vehicle warranty letters legit? ›

Verify: If you receive a piece of mail or call regarding your auto warranty, verify the legitimacy of the offer. Contact your vehicle manufacturer or dealership directly using a trusted phone number to inquire about your warranty status. Be Skeptical: Be cautious of high-pressure tactics and unsolicited offers.

How do I stop getting extended warranty mail? ›

You can sign up with the Direct Marketing Association (DMA) to eliminate many kinds of mailings. The FTC said doing so will stop most, but not all, promotional mail, and the organization says it will stop about 80% of unwanted mail. Pay a $4 processing fee and your registration will last for 10 years.

Are car extended warranties legit? ›

While a service contract might sound like a good idea, it could duplicate coverage you have through your manufacturer's warranty. And you might actually pay more for a service contract than you get back in benefits. What's more, some companies pitching warranty extensions are scammers.

How do I stop fake warranty calls? ›

Screen Your Phone Calls

This may seem obvious, but the best way to avoid car warranty robocalls is by letting them go to voicemail. If you don't recognize a number, simply don't answer it. If it's important — say, if your actual extended warranty company is trying to get in touch — the caller might leave a message.

How do I remove my number from the spam list? ›

Yes. To remove your number, call 1-888-382-1222 from the phone you want to remove. Your number will be off the Registry the next day. Businesses and organizations have to update their telemarketing lists within 31 days.

Why do I keep getting letters about my car warranty? ›

It could be a fraud involving a car warranty. Do not call the number on any letter or postcard you receive, even if it appears to be from the manufacturer. It could be a forgery. Don't buy a service contract if your vehicle's warranty has ended or is about to expire.

What is the most reputable car warranty company? ›

Best Extended Car Warranty Companies
Car Warranty CompanyOur AwardOverall Score
Endurance Explore PlansBest Comprehensive Coverage9.3
autopom! Learn MoreBest Customer Service9.2
Carchex Learn MoreBest Industry Reputation9.1
CarShield Learn MoreBest for Flexible Payments8.9
6 more rows
Aug 20, 2024

What number is 1 855 985 0144? ›

The number of scams continues to increase, and the nationwide fraud losses topped $10 billion in 2023! This scammer uses the number 1-855-985-0144. I do NOT recommend calling it from your phone!

Why are extended warranties not recommended? ›

An extended warranty or service contract might not be worth the cost if a product isn't likely to need repairs. Check product review websites to see if other people say the product often needs expensive repairs.

Can I back out of an extended warranty? ›

For many dealership contracts, there is a time limit by which you can cancel your extended warranty without repercussions, typically within 30 to 60 days. However, some dealerships make it difficult to cancel their warranty even within the allotted timeframe.

Can you decline a warranty? ›

For those with buyer's remorse, there's good news — most warranties can be canceled and you'll get a prorated amount refunded.

Why do I keep getting calls about my car's extended warranty? ›

Car warranty scams occur when someone impersonates a manufacturer or a dealership and contacts a customer claiming their warranty expired. The scammer often attempts to persuade you to renew your warranty, insisting that a failure to do so could result in expensive repairs, engine replacements or transmission issues.

What is a downside to purchasing an extended warranty? ›

Limited coverage: Extended warranties don't cover all types of damage, nor do they always cover all of your car's components. Loss of use may not be covered: Not all warranties include coverage for a rental car or other transportation fees in the event of an extended repair time.

Are extended warranties worth it for older cars? ›

An extended warranty for older vehicles may be worth it for several reasons. It saves money, offers flexibility, increases resale value, and provides perks and peace of mind.

Can you refuse extended warranty? ›

If you've decided that the extended car warranty you've purchased through your dealership isn't the right fit for you, In most cases, you can cancel your warranty contract with just a few simple steps. However, the cancellation process varies based on the provider.

How to block spam calls? ›

Enable Caller ID and spam protection on Android

This is free to use and built into the Phone app. Open the Phone app, tap the three-dot icon, and select Settings. Under the Assistive settings, tap Caller ID & spam. Toggle See caller and spam ID and Filter spam calls to the right.

Why is the vehicle service center calling me? ›

This is an illegal robocall and likely a scam. The companies behind this type of robocall are not with your car dealer or manufacturer, and the “extended warranty” they're trying to sell you is actually a service contract that often sells for hundreds or thousands of dollars.

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