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The Department of Agriculture, Trade and Consumer Protection has opened investigations of companies and telemarketers allegedly using misrepresentation and deception to sell motor vehicle extended service contracts. According to law enforcement agencies around the country, scores of consumers have been misled into paying for unnecessary extended service contracts costing about $2,000.
“In addition to inundating consumers with telemarketing calls that violate the No Call law, these out-of-state companies prey on consumers’ fear, sending misleading letters informing them that their current motor vehicle warranties are about to expire, when in fact they are not,” said Janet Jenkins, administrator of Trade and Consumer Protection.
“Wisconsin consumers can assist in our investigation by contacting us if they have made these purchases,” Jenkins said. “We need your help because some operators appear to be hiding behind fake caller ID information.
According to Jay Nixon, attorney general in Missouri, where many of the companies are located, “the companies mislead consumers in letters and postcards with boldfaced statements such as ‘Notification of Interruption!’ and ‘Important Dated Material Enclosed’ — leaving the impression that they are sent from the manufacturers or the dealers who sold the vehicles to them.
“In fact,” Nixon continued, “the companies fail to inform the consumers that they are not affiliated with the manufacturer, dealer or any local, state or federal government agency, and that the mailings amount to advertisements.”
To report an experience with these scam artists, call 1-800-422-7128.
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