Extended Warranties: Crime Doesn't Pay
Posted by Joseph Della Morte on Fri, Mar 25, 2011 @ 09:32 AM
It is with a certain amount of hesitation that I post this blog entry. There are unscrupulous players in this industry and they do NOT enhance our reputation by their actions. This blog is about one of them.
A BusinessWeek article was published online on March 21st detailing an elaborate scam dating back to 2007 involving sales of vehicle service contracts by a company called Transcontinental Warranty.
From the article:
"Where Transcontinental went wrong, Wigginton has said, is that it led people to believe the calls were on behalf of automakers and used a fictitious name in dealings with consumers. The company also suggested it was capable of extending or reinstating warranties and that the product being sold was an actual warranty instead of a service contract, which often includes a waiting period for the repair and allows repair shops to use replacement parts from junkyards."
Aside from using automatic telephone dialing equipment, these scoundrels told prospective victims of their scam their car warranties were expiring ( which may have been true). What wasn't true was a representation by the scammers that they were extending the factory warranty. They weren't. They were selling a third party extended service contract. As a result, the perpetrators may be going to prison.
All of which continues to make it very difficult for folks like us who are trying to do an honest day's work on behalf of our customers.
Please rest assured CarGuard will not misrepresent our company or our products, will not harrass prospective customers with robo-dialing and will continue to provide the best possible extended warranties available in the industry.
Good products and good service by an informed staff. It's why CarGuard is the exclusive provider of vehicle service contracts to AAA Southern New England members.
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