Scammers use car warranties to rip off drivers - Action News 5 - Memphis, Tennessee

Scammers use car warranties to rip off drivers

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MEMPHIS, TN -

(WMC-TV) - Scammers have found a new way to rip you off on your car service, especially now that a lot of you have figured out those worthless third party warranties.

"That is when they figured out, ‘Hey, this isn't what I thought it was!'" said U.S. Postal Inspector Dan Taylor.

At that point, many victims had difficult canceling or even getting the refunds owed to them.

Some states, like Missouri and California, banned third party auto warranties.

To get around those bans, scam companies came up with another "good" one -- the "additive warranty."

These are small bottles of coolant or lubricants that come with the promise to "magically" protect your car.

"This additive was valued at several thousand dollars, and as an added bonus, an auto warranty was included with the package," explained Taylor.

Pour the product into your engine and that is supposed to "activate" the warranty.

Postal inspectors said the whole thing is a trap.

"They could no longer get a refund because they couldn't return the additive," said Taylor.

Inspectors say this so-called "additive warranty" offer is coming by both phone and by mail.

Ignore it, and instead, always choose auto warranties that are either sold or backed by your car's manufacturer.

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