The Missouri attorney general took it to task.
Now it appears Warranty Activation Headquarters, aka Warranty Outlet of the St. Louis area, is stuffing mailboxes in the Mid-South.
The give-away: it may be offering you a warranty on a car YOU DON'T EVEN OWN!
Recently, one of its letters showed up at "Joyce's" house in Senatobia, Mississippi.
The letter warns her that the warranty on her '05 Chevy is about to expire, and it's time to renew with one of Warranty Activation Headquarters' service contracts.
There's just one thing, Joyce writes:
"...I do not have a 2005 Chevrolet and never have. On down in the letter it asks that I have my vin number handy as well as (my) ID#."
Obviously, if you don't have the car, you don't need the warranty!
But the Better Business Bureau says the problem is when Warranty Activation Headquarters does get your car right, some consumers sign up, not realizing that the company has no connection at all to either their current extended warranty or their manufacturer's warranty.
The St. Louis BBB gives Warranty Activation Headquarters a "D-" rating. It's generated 155 complaints in the last three years for misleading ads, warranty misrepresentations, failure to cover repairs, etc. Here's a link to the BBB's report:
Last year, the company paid the Missouri attorney general's office $5,000 to settle allegations that it ripped off consumers. It agreed to respond to every consumer who complained to the AG and provide refunds to any consumer who cancels the deal within 30 days. Here's the link to the Missouri AG's release:
This company perfectly illustrates the problem with THIRD-PARTY auto warranties. Many of these warranties are backed by "fly-by-night" operators who have no intention of honoring them.
Watch Ask Andy on Action News 5 at 10 tonight for another one of these bogus warranty companies and my commentary about how to deal - or NOT to deal - with third-party auto warranties.