Telemarketing scams run from one crooked scheme to another, and often look for senior citizens or other vulnerable persons to target for worthless ripoff deals. The latest scam to be wary of is the extended car warranty scam. This scam usually works by a recorded phone call that is somewhat official sounding claiming that a consumer's vehicle warranty is about to expire and that they need to extend their coverage. The problem is that this is almost never a phone call from any real automobile manufacturer to cover costs for service at dealers, but instead just another dirty boiler room phone bank ripoff.
Victims of this scam leave themselves open to all sorts of fraud by giving out sensitive credit card, bank account or social security number information over the phone. And these worthless vehicle warranties usually cover little normal repair costs for any normal service that a consumer may require. These worthless warranties can be very costly, with empty promises of covering expensive vehicle repair services, but usually never cover much of anything. These warranties are not from established companies with any real proof of banked assets required to cover the repair costs for any warranty plan purchased by consumers. Many of these vehicle warranty companies are only a few weeks old at best, and hardly any established business by any means. As soon as they take a consumers money they will likely be gone.
Telemarketers do business over the phone because they have little real worthwhile binding contract information to give to consumers like legitimate companies do. Normal insurance companies have a great deal of information and contracts compared to some telemarketer who offers a consumer nothing in writing before taking a consumer's money. Smart consumers should never buy anything over the phone and hang up on all telemarketers and instead only do business with established companies with a real location and a real reputation. Once a victim gives any telemarketer their sensitive credit card or bank information, it's too late. Hang up on telemarketers and report all scams involving the loss of your money to your attorney general's consumer fraud office.
Note: Wizbang Blue is now closed and our authors have moved on. Paul Hooson can now be found at Wizbang Pop!. Please come see him there!