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The Washington Attorney General’s Office is leading a 40-state investigation into several businesses that send official-looking postcards warning that your car’s warranty recently expired or will soon. The names of those companies are still hush-hush but All Consuming readers may recall we issued an alert last year about such mailers.
Many of these companies make it appear that they are associated with your car’s manufacturer but it’s not true. Their letters and phone calls are designed to pressure you into buying an expensive service contract.
The Today Show recently aired a critical report about one such biz, U.S. Fidelis. The story includes an interview with a woman who paid thousands for a “warranty” she thought would cover future repairs. But when her car overheated, she footed the bill.
The Better Business Bureau has received more than 1,200 complaints about U.S. Fidelis, which happens to be a primary NASCAR sponsor.